Trump threatens additional 50 per cent tariffs on China

Good morning and welcome back to FirstFT Asia, where we’re following the ongoing global market rout from Donald Trump’s tariffs. Also in today’s newsletter:

• Jamie Dimon’s response to tariffs

• The resignation of a top Honda executive

• Can’t-miss food at Japan’s konbinis

Donald Trump has threatened additional 50 per cent tariffs on China if Beijing does not withdraw its retaliatory levies on Washington. The US president’s latest comments on his trade war came on a day of acute volatility on Wall Street.

Trump’s threat: “If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump wrote on Truth Social yesterday.

The Trump administration hit China with 34 per cent in additional duties last week, stacked on top of the 20 per cent levies it had already imposed. In response, China increased levies on US goods by an additional 34 per cent. 

Hours later the US president said he is “not looking” at a pause in tariffs to allow for trade negotiations and that “many countries” are reaching out to negotiate with US officials. Treasury secretary Scott Bessent said on X yesterday that he and US trade representative Jamieson Greer had been asked by Trump to open the negotiations with Japanese Prime Minister Shigeru Ishiba and his cabinet.

What are analysts saying?: While the “situation is bad; it could be worse”, said Cory Combs, associate director of Beijing-based consultancy Trivium China. Beijing has “strategically left itself space to continue ratcheting up retaliation”, holding back some firepower for negotiation as the trade war escalates.

Wild swings on Wall Street: Trump’s threat to sharply boost duties on China, the world’s biggest exporter, came on a day of extreme volatility in US markets. The blue-chip S&P 500 share index swung in a wide range, but closed down only 0.2 per cent. Apple, which is heavily exposed to China through its supply chains, dropped 3.7 per cent. The tech-heavy Nasdaq Composite ended the day up 0.1 per cent. Follow the latest market moves on our live blog.

• Jamie Dimon weighs in: The JPMorgan Chase chief warned that a global trade war risks tipping the US economy into a recession and driving prices higher.

• Billionaire backlash: Financiers lambasted Trump’s wide-ranging tariffs for being set too high and implemented too quickly. BlackRock’s Larry Fink said the US economy was “weakening as we speak”, while hedge fund manager Bill Ackman, a vigorous Trump supporter in the 2024 election, criticised some of the president’s policies.

• EU retaliation: Brussels will hit the US with 25 per cent tariffs on a range of goods in response to its duties on aluminium and steel, but has exempted bourbon, wine and dairy products.

• Instant Insight: Markets could get a lot worse — and quickly, writes Katie Martin. Here’s how.

For more analysis on the tariffs, sign up for our Trade Secrets newsletter if you’re a premium subscriber, or upgrade your subscription. Here’s what else we’re keeping tabs on today:

• Economic data: Indonesia and Taiwan report March CPI inflation figures.

• Nato-Japan: Mark Rutte, secretary-general of the military alliance, begins a two-day visit to Japan.

• Panama: US secretary of defence Pete Hegseth will visit as Washington increases pressure on the Central American nation for alleged Chinese influence over its famous canal.

Five more top stories

1. A top Honda executive has resigned abruptly after an allegation that he had engaged in inappropriate conduct during a social gathering. The exit of Honda’s number two executive Shinji Aoyama comes as Japan grapples with a series of other high-profile misconduct scandals involving business leaders. Here’s what we know.

2. A $5.6bn Singaporean start-up will seek banking licences in the UK and US, its chief executive has said. Corporate payments company Airwallex, whose clients include car racing group McLaren, hopes to expand into lending and compete with global banks.

3. Trump has announced the US would hold direct talks with Iran on curtailing Tehran’s nuclear programme, in a sign of possible progress in one of the Middle East’s most intractable problems. The US president’s comments came after talks with Israeli Prime Minister Benjamin Netanyahu which had touched on Iran, as well as US tariffs on Israel and the war in Gaza.

• Middle East war: Israel has stepped up air strikes on Lebanon and Syria alongside its renewed military offensive in Gaza, widening attacks and pushing up tensions across the region.

4. The ECB is highly likely to cut borrowing costs next week and again in June, investors and economists believe, as Trump’s sweeping tariffs risk pushing the bloc into recession. A quarter-point cut in April and another in June “have really become a no-brainer,” said one analyst, who added that any other decision would be “a disaster”.

5. The UK government has set out plans to water down rules for private equity and hedge funds by introducing a lighter regulatory regime for smaller groups to encourage more investment. The Treasury announced yesterday that it would lift the size threshold for which alternative asset managers are subjected to the main rules for the sector. Read the full story.

The Big Read

Healthcare workers and officials say falsehoods and conspiracy theories are exacerbating inequalities and costing lives. Today’s Big Read explores the loss of trust in doctors in an age of misinformation — and a triumphant example from India of what can be achieved when the community is successfully enlisted as a partner in countering false claims.

We’re also reading . . . 

• Trump’s tariffs viewed from Japan: Leo Lewis in Tokyo reports how the impact of Trump’s tariffs dawned on investors in Asia.

• Protecting ‘Australianess’ in the Netflix age: Australia’s television producers are pushing for a law to impose local content quotas on streamers, writes Nic Fildes.

• The Trumpanos: The US president’s tariff war is revealing the weakness of his mafia boss approach to the world economy, write Gideon Rachman.

Chart of the day

Trump’s new tariffs of 10 per cent to 49 per cent on clean energy technology from China, south-east Asia and Europe pose a one-two punch for an industry already reeling from the US president’s embrace of the fossil fuel industry.

Take a break from the news . . . 

Japanese convenience stores are one-stop shops for everything from clothes to make-up to household items. But it’s the food that makes konbinis such vital destinations, writes Ajesh Patalay.