China has hit back at Donald Trump, raising tariffs on US goods to 125% from 84%. It comes as Asian and US markets plunge. Meanwhile, the US president faces accusations of insider trading – listen to Trump 100 as you scroll.
Friday 11 April 2025 10:33, UK
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A senior JPMorgan investment strategist says he has held back on some of his comments about the tariffs in public because he is concerned about the impact his opinions could have on colleagues.
In a webinar titled „The 2025 Tariff Shock“, Wall Street veteran Michael Cembalest said tariffs were a „kind of sledgehammer, brute force approach“.
„This is the first time I’ve ever had to do a call where I had to think about the things that I was saying, not just in terms of how they reflect our views on markets and economics,“ Cembalest said.
„But I had to think about how they might reflect on the firm and some of its colleagues at a time when people are being held accountable for their views and the things that they say in ways that they probably shouldn’t be.“
While his comments did not reference President Donald Trump directly, they come at a time where businesses are exercising increased caution as the government signs executive orders targeting law firms, restricting their access to government officials and threatens to cancel federal contracts held by their clients.
„It has just got worse but it’s also got worse within relatively predictable parameters,“ Asia correspondent Helen-Ann Smith says after China raised retaliatory tariffs on US goods.
That’s because every time Trump has raised tariffs, China has responded by matching the new tariff level – this time at 125%.
„That’s what we got from Trump a couple of days ago. That’s what we have from China now. So it’s following this pattern.“
One of the most important things to come out of the statement from Beijing, Helen-Ann says, is the Chinese calling the situation a „numbers game“ and that raising tariffs at this stage doesn’t really mean anything in the real world.
„And that’s true really, because once tariffs have got over 60% or 70% it basically renders trade between the two countries impossible.
„So whether it’s 100%, 150%, 200%, even 100% it doesn’t really make much difference. Trade has essentially been obliterated anyway.“
The question is what happens next. There are two options, she says: either an ongoing „stalemate“ where these countries are not trading with each other anymore or Trump might pursue political or other measures against China, which could provoke a response.
By Ed Clowes, business reporter
Europe’s key stock indexes have turned negative in the past hour as news broke that China will strike back at Trump’s tit-for-tat tariffs by increasing its duties on American products to 125% from the previous 84%.
The FTSE 100, a collection of the UK’s largest companies, dropped to 0.5% after starting the day slightly up, while Germany’s Dax 40 dropped 1.5% and France’s Cac 40 fell by 0.9%.
Asian markets were a more mixed picture, with Japan’s Nikkei down nearly 3%, but Shanghai’s stock index up 0.45%, as a whipsaw week of trading draws to a close in the region.
Oil prices look set to fall for a second consecutive week, while gold has hit a record high with investors turning to perceived safer havens to ride out economic volatility.
It comes as Asian markets plunged overnight and had been on track for their worst week since the 2008 financial crash after further turmoil on US markets.
US stocks had rebounded briefly after Trump’s 90-day tariff pause, but this was short lived and followed by losses.
China has announced an increase in tariffs on US goods – from 84% to 125% – but said there will not be further increases.
The finance ministry said the current tariff level means there is no market acceptance for US goods exported to China.
„If the US continues to impose tariffs on Chinese goods exported to the United States, China will ignore it,“ the ministry said.
What US tariffs does the world face? Here are the key numbers at a glance:
China v US
10% tariff for most of the world
No change for Canada or Mexico
Car and metal tariffs remain
Sectors at risk
China’s commerce ministry has accused Washington of violating international economic and trade rules „and common sense“ as Beijing raised tariffs on US goods to 125%.
It says the US should bear full responsibility for the „serious shocks and violent turbulence“ facing global financial markets.
In a statement, the ministry acknowledges that the US has paused some tariffs „under pressure from China and other parties“.
But it adds: „This is only a small symbolic step and has not changed the nature of the United States seeking private interests through trade blackmail.
„China urges the United States to take a big step in cancelling the so-called „reciprocal tariffs“ and thoroughly correct its wrong practices.“
China has announced it is raising additional tariffs on US goods to 125%, up from 84%.
The tariffs will come into effect from tomorrow, the Chinese finance ministry says.
If the US insists on continuing to infringe on China’s interests then Beijing will take countermeasures and „fight to the end“, it says.
„The US’s imposition of abnormally high tariffs on China seriously violates international trade rules, basic economic laws and common sense, and is completely a unilateral bullying and coercion,“ the ministry says.
It comes after Donald Trump announced a 90-day pause on additional tariffs for most countries but raised those on China to 145%.
By Ed Clowes, business reporter
The UK’s most important stock index climbed gently this morning, with the market opening around 0.4% up after a strong bounceback yesterday.
It comes after a week of wild market swings up and down in response to Trump’s sweeping tariffs, as the global economy shuddered in response to the quickly materialising trade war.
The Mexican mining company Fresnillo was the top performer, growing 3.6% in the first 20 minutes of trading, while BP was the biggest loser, dropping 1.7% and continuing a poor run of form that has seen the company’s share price fall by more than a fifth this week.
Elsewhere in Europe markets were also positive, with France’s benchmark Cac 40 index gaining 0.4%, and Germany’s Dax index also increasing by 0.4%.
As we’ve reported, Asian markets plunged overnight and had been on track for their worst week since the 2008 financial crash after further turmoil on US markets – which closed down yesterday.
President Xi Jinping has called on China and the EU to work together to „oppose unilateral bullying practices“ – a reference to Donald Trump’s trade tariffs.
„There are no winners in a tariff war,“ the Chinese leader said after talks with Spanish Prime Minister Pedro Sanchez.
„Going against the world will only lead to isolation,“ he said.
While most countries were given a 90-day reprieve from tariff increases, China was instead hit by 145% tariffs as Trump pursues a trade war with Beijing.
Mexico is „stealing“ water from Texas and could face additional tariffs if it doesn’t stop, Donald Trump has claimed.
Farmers in the Lone Star State are being „hurt“ by Mexico, Trump said, referencing an 81-year-old agreement.
Under the 1944 Water Treaty between the two countries, Mexico must send the US 1.75 million acre-feet of water from the Rio Grande every five years.
An acre-foot of water is enough to fill about half an Olympic-sized swimming pool.
„Mexico has been stealing the water from Texas Farmers,“ Trump said on Truth Social.
He added: „We will keep escalating consequences, including TARIFFS and, maybe even SANCTIONS, until Mexico honours the Treaty, and GIVES TEXAS THE WATER THEY ARE OWED!“
Mexico’s President Claudia Sheinbaum posted on X that Mexico has suffered a three-year drought but has been complying with the water treaty „to the extent water is available“.
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Tariffs latest: Asian and US markets plunge – as Trump faces insider trading accusations – Sky News
