Trump Tariffs highlights: White House says 104% tariffs imposed on China, effective from April 9

US stocks experienced another day of dramatic fluctuations on Tuesday, as uncertainty looms over President Trump’s trade war, which is set to escalate after midnight. The S&P 500 initially surged 4.1%, but quickly lost all gains and was virtually flat by afternoon. The Dow Jones Industrial Average was up 158 points, while the Nasdaq Composite was down 0.2%.

Global markets rallied earlier, with Tokyo gaining 6%, Paris up 2.5%, and Shanghai rising 1.6%. However, analysts caution that volatility is likely to persist. The key question remains how long Trump will maintain tariffs, which could raise consumer prices and slow economic growth. If prolonged, they could trigger a recession, but if negotiations lead to quick reductions, the worst-case scenario might be avoided.

Trump’s optimism remains, citing talks with South Korea and other countries. Despite this, China has vowed to counteract further tariff hikes, escalating tensions. On Wall Street, health insurers led gains, while Treasury yields rose for the second consecutive day.

Italian Prime Minister Giorgia Meloni said Tuesday that she would visit Washington next week to discuss US tariffs on the European Union with President Donald Trump.

In comments to a meeting with businesses published by her office, the far-right leader backed the European Union's calls for a negotiated solution to the situation.

"This is the negotiation that must see us all engaged and at all levels... and that involves me, who will be in Washington on April 17 and obviously I intend to address this issue with the US president," Meloni said.

Meloni, who has sought to maintain ties with fellow conservative Trump despite the disruption of his policies, said it was difficult to precisely assess the economic consequences of the new tariffs.

But she warned against "panic and alarmism" that she said "risk doing more damage than the measure itself".

"I think we can all agree that a trade war between Europe and the United States does not suit anyone," she said.

US stock markets experienced increased volatility following the White House's announcement that additional tariffs on Chinese imports will take effect on April 9. The S&P 500 and Dow Jones Industrial Average pared earlier gains, while the Nasdaq Composite turned negative as investors reacted to the escalating trade tensions.

The White House has confirmed that total US tariffs on Chinese imports are set to reach 104% on Wednesday, escalating an already tense trade standoff between the two economic powers. The confirmation came after Beijing warned of a "fight to the end" if Washington proceeded with its planned tariff hike.

According to a report by AFP, President Donald Trump has decided to follow through on an additional 50% tariff on Chinese goods after Beijing declined to roll back its retaliatory measures. This move builds on previously imposed duties and brings the cumulative tariff burden for the year to 104%.

“These tariffs are necessary to protect American industries and workers from unfair trade practices and state-backed subsidies that distort global markets,” a White House spokesperson said.

The latest increase underscores the administration’s tough stance on trade as Trump heads into a high-stakes election year. Beijing, meanwhile, has not indicated any shift in position, raising the likelihood of further economic fallout.

Officials have not specified which sectors will be most affected by the increased tariffs, but the electric vehicle, tech, and consumer goods markets are expected to see significant disruption.

The White House has confirmed that a 104% tariff on electric vehicles imported from China has gone into effect, with additional duties set to be collected starting April 9, according to a report by Fox Business.

The announcement marks one of the most aggressive steps taken yet in a growing trade standoff between Washington and Beijing. The 104% rate includes existing tariffs and new duties under Section 301 of the Trade Act, according to officials familiar with the move.

The Trump administration is also expected to roll out further details this week about its tariff review process and ongoing investigations into Chinese subsidies, which have drawn criticism from US automakers and labor groups for distorting global markets.

Stock markets rebounded on Tuesday after a sharp global sell-off, offering a brief respite from the recent turmoil triggered by escalating trade tensions under US President Donald Trump. While investors welcomed the recovery, analysts cautioned that uncertainty remains high, with fears of further volatility as the trade war shows no signs of easing. The partial recovery came after trillions in market value were wiped out in recent days, prompting speculation that Washington might reconsider or soften some of its tariff measures.

The top US trade official on Tuesday defended President Donald Trump's sweeping tariffs on nearly every other nation, telling US senators almost 50 countries had reached out to make a deal.

Jamieson Greer's appearance in Congress came with Republicans ringing alarm bells over Trump's escalating trade war and Wall Street clamoring for clarity on the president's plans after a historic market sell-off.

The US trade representative argued that the strategy was "already bearing fruit."

"Nearly 50 countries have approached me personally to discuss the president's new policy and explore how to achieve reciprocity," he told the Senate Finance Committee.

Several countries -- including Argentina, Vietnam and Israel -- had offered to reduce their tariffs, Greer said, while auto manufacturers were canceling layoffs and companies had announced $4 trillion in new investment in the United States.

The annual hearings on the president's trade policies are often staid affairs.

Commerce and industry minister Piyush Goyal will hold a key meeting with exporters on Wednesday to discuss the implications of the 26% additional reciprocal tariffs recently imposed by the US under President Donald Trump’s administration, according to an industry official.

Senior officials from the commerce ministry, representatives from various Export Promotion Councils (EPCs), and the Federation of Indian Export Organisations (FIEO) are expected to attend the meeting.

An official from one of the councils said exporters are preparing to raise concerns over the potential fallout of the U.S. tariffs, which could hurt demand and ultimately impact India's outbound shipments. “The duty may impact demand in the US, which would hurt our exports,” an exporter noted.

US stocks opened sharply higher, with the S&P 500 rising 3.86% and the Dow Jones Industrial Average increasing by 1,403 points (3.70%) at 10.15 am EST, while the Nasdaq composite showed a 4.34% gain. All three major US indices were up more than three percent in early trading as President Donald Trump described an upbeat call with the head of South Korea, while US Treasury Secretary Scott Bessent said Japan had sought quick negotiations. The recovery was observed globally, with Tokyo stocks rising 6%, Paris 3.4%, and Shanghai 1.6%. Crude oil prices showed slight improvement after reaching their lowest point since 2021. Bitcoin stabilised above $79,000, recovering from its previous day's decline towards $76,000. Markets briefly rose on reports of President Donald Trump considering a 90-day tariff suspension for all nations except China, but the White House later rejected this as "fake news."

Wall Street rallied Tuesday morning as investors sought to recover from last week’s historic losses triggered by President Donald Trump’s aggressive tariff announcements on Chinese imports. The rebound followed signs of stabilization in global markets and renewed interest from dip buyers.

The S&P 500 rose 3.4% in early trading, the Dow Jones Industrial Average surged 1,230 points, or 3.3%, and the tech-heavy Nasdaq composite gained 3.6%. U.S. crude oil prices also edged higher after hitting a four-year low.

The global relief came even as trade tensions escalated further. China issued a strong warning, pledging to “fight to the end” and promising countermeasures in response to Trump’s threat of a new 50% tariff on Chinese goods.

The rally offered investors a momentary reprieve, though uncertainty around the U.S.-China trade dispute continues to loom over markets.

Nasdaq up 3.7%, Nvidia jumps over 6% as markets recover from trade-war recession fears

U.S. equities bounced back sharply on Monday morning, halting a three-day selloff that had wiped out over $5 trillion in stock-market value amid escalating concerns about a trade-war-induced recession.

At the opening bell, the S&P 500 surged 3.4%, the Dow Jones Industrial Average gained 3.5%, and the tech-heavy Nasdaq climbed 3.7%. The rally was led by dip buyers seizing on discounted valuations following days of steep losses.

Chipmaker Nvidia Corp. led the rebound, soaring 6.31% and lifting the broader tech sector along with it. Other members of the so-called "Magnificent Seven" also posted gains, helping to power the Nasdaq 100 up 3.5%.

The sharp gains reflect a temporary relief from recent market panic, though analysts warn volatility may persist as trade tensions and recession risks linger.

World shares and US futures advanced Tuesday, led by gains in Tokyo where the Nikkei 225 shot up just over 6 per cent as markets settled after the shocks from President Donald Trump's tariff hikes. Japan's Nikkei newspaper reported Tuesday that US Treasury Secretary Scott Bessent would lead trade negotiations with the country, which as been buffeted by an escalating trade war kicked off by Trump. Such negotiations are typically led by trade representatives, the Nikkei reported citing unnamed sources, hinting that currency imbalances may also be part of the reported talks.

Futures for the S&P 500 gained 1.7 per cent before the bell, while futures for the Dow Jones Industrial Average jumped 2.1 per cent. Nasdaq futures climbed 1.5 per cent.

Tuesday's rebound followed a wild day on Wall Street, where stocks careened after Trump threatened to crank his double-digit tariffs higher.

On Tuesday, China's Commerce Ministry said it would "fight to the end" and take unspecified countermeasures against the United States after Trump threatened another 50 per cent tariff on Chinese imports.

US President doubles down on trade rhetoric as markets remain jittery. Trump claimed that China is eager to strike a trade deal with the United States, but is floundering on how to initiate talks. “They want to badly make a deal,” Trump said, “but they don’t know how to get it started.”

The statement comes just days after Trump’s sweeping tariff hike rattled markets and drew warnings from economists about a potential recession. Trump has defended the tariffs as necessary to curb what he calls China’s “decades of abuse” on trade, insisting that his hardline stance is about rebuilding American manufacturing and rebalancing the global economy.

US Treasury Secretary Scott Bessent on Tuesday slammed China’s decision to escalate its tariff measures, calling it a "big mistake" and warning that Beijing’s move would hurt itself more than the United States.

“We are the deficit country. So what do we lose by the Chinese raising tariffs on us? We export one fifth to them of what they export to us. So that is a losing hand for them,” Bessent said in an interview with CNBC.

His remarks come as markets react to growing trade tensions, with concerns mounting over the potential global economic impact. However, Bessent dismissed market jitters, asserting that the U.S. tariff talks were a response to calls from other nations for a fairer system — not a reaction to sliding stocks.

President Donald Trump will be “personally involved” in ongoing trade negotiations, Bessent added, noting that “everything is on the table,” including possible pressure on the European Union to lower non-tariff barriers such as value-added taxes.

Bessent also pointed to a potential energy deal in Alaska — backed by Japan and South Korea — as an example of how trade talks could result in job creation and help reduce the U.S. trade deficit.

President Donald Trump’s sweeping new tariffs — including a 10% duty on nearly all countries and added taxes on imports from 60 nations — have triggered a financial tremor. The stock market plunged last week, and now economists are asking a bigger question: Could these tariffs tip the US economy into a recession?

The short answer? Not yet. But the country is getting closer.

Goldman Sachs economists just increased the probability of a recession to 45%, from 35% last week. JPMorgan is even more pessimistic, estimating at 60% and cautioning inflation can rise to 4.4% by the end of the year — from the current 2.8%.

"We expect to revise our forecast to a recession" if tariffs remain, wrote Goldman's Jan Hatzius and colleagues.

So what are the indicators that a recession is in the making? And how will we know if US is already there?

Agrowing number of economists are raising concerns about U.S. President Donald Trump's escalating tariff measures, warning that the policies could tip the world into a global recession and permanently damage international trade systems.

‘Spectacle of failed policies’

Li Daokui, professor at Tsinghua University, called the tariffs a deliberate squeeze on other countries for concessions, labeling them a “spectacle” of failed policy. “It is hard to imagine another economic policy that causes global harm, including to Americans themselves,” he said. Li added that China is prepared with countermeasures and may use the opportunity to reshape global trade alliances.

‘Failure of Reaganism’

French economist Thomas Piketty said Trump's trade war is a reaction to the failure of economic liberalism from the Reagan era. “The Trump cocktail will only lead to more inflation and inequality,” he said, urging Europe to respond with major investments in infrastructure and social services.

‘Malignant stupidity’

Nobel laureate Paul Krugman called Trump’s strategy a “dominance display,” not rooted in economic logic. “This is malignant stupidity at a time when the fate of the world economy is on the line,” he said.

Impact on developing nations

Economists Nasser Saidi and Kako Nubukpo warned of severe consequences for emerging economies and African nations. Saidi predicted disruptions to supply chains, while Nubukpo said African countries should reinforce regional value chains. Nigerian economist Bismarck Rewane added, “Africa will suffer but not as much as the big boys.”

As global markets reeled on Monday following President Donald Trump’s aggressive tariff announcement, Republicans in conservative Alabama stood firmly behind him — cracking jokes instead of expressing alarm.

At the Alabama Republican Party’s “Trump Victory Dinner” last week, held in downtown Birmingham, party chairman John Wahl brushed aside economic anxieties and delivered a full-throated endorsement of Trump’s “America First” agenda. “The Alabama Republican Party will buy them a plane ticket to any country in the world they want to go to,” Wahl declared to cheers, referring to critics of the former president.

The room—filled with lobbyists, donors, state lawmakers, and local activists—responded with laughter, applause, and the kind of energy usually reserved for campaign trail rallies.

Trump, meanwhile, remained defiant Monday despite the market turmoil triggered by his tariff threats. He has repeatedly defended the move as essential for protecting U.S. manufacturing and called out China as “the biggest abuser of them all” after Beijing announced retaliatory measures.

While some Alabama Republicans have quiet concerns about the economic fallout, their public message remains clear: in this corner of the country, Trump still dominates the political conversation — tariffs, turbulence, and all.

Vietnam will buy more US goods including security and defence products, the government said, as it seeks a last-minute delay to enormous tariffs imposed by Washington.

The Southeast Asian manufacturing powerhouse counted the United States as its biggest export market in the first three months of the year, but its key customer has now hit it with colossal 46 percent duties.

Hanoi has asked US President Donald Trump to delay their implementation by at least 45 days to give time for talks.

Prime Minister Pham Minh Chinh said Vietnam would "approach and negotiate with the US side to reach a bilateral agreement, moving towards a sustainable trade balance", according to a statement published on the government's news portal late Monday.

It would also "continue to buy more US products that are strong and Vietnam has demand for, including products related to security and defence; promote early delivery of aircraft trade contracts", the statement added.

Indonesia's benchmark stock index closed nearly eight percent lower on Tuesday, the biggest fall since 2011 in a sell-off stoked by US President Donald Trump's sweeping tariffs.

The Jakarta Composite Index fell 7.9 percent to its lowest level since June 2021 as markets in Southeast Asia's biggest economy reopened after being closed since March 28 because of public holidays. It was the biggest fall since 2011, Bloomberg reported.

In sharp retaliation to Trump's tariff, China has decided to ban imports of US films (Hollywood films), according to a report from DailyMail quoting BBC's Radio 4 programme.

Asian and European markets battled Tuesday to recover from the previous day's tariff-fuelled collapse, though Donald Trump's warning of more measures against China and Beijing's vow to "fight to the end" raised concerns of a spiralling trade war.

Equities across the world have been hammered since the US president unveiled sweeping levies against friend and foe, upending trading norms, sparking talk of a global recession and wiping trillions of company valuations.

Investors fought to claw back some of those losses as they try to assess the possibility that Washington could temper some of the tariffs. Tokyo traded up more than six percent -- recovering much of Monday's drop -- after Japanese Prime Minister Shigeru Ishiba held talks with Trump.

However, the US leader's threat to hit China with an extra 50 percent tariffs -- in response to its 34 percent retaliation in kind -- ramped up the chances of a catastrophic stand-off between the two economic superpowers.

Trump said he would impose the additional levies if Beijing did not heed his warning not to push back against his barrage of tariffs.

China fired back that it would "never accept" such a move and called the potential escalation "a mistake on top of a mistake".

If Washington "insists on a tariff war and a trade war, China will definitely fight to the end", China's foreign ministry spokesman Lin Jian said Tuesday.

"Pressure, threats and blackmail are not the right way to deal with China," he said.

EU chief Ursula von der Leyen warned against escalating a trade conflict sparked by sweeping US tariffs during a phone call with China's Premier Li Qiang on Tuesday, the European Commission said.

"The President called for a negotiated resolution to the current situation, emphasising the need to avoid further escalation," said a readout of the call, which came after Beijing vowed to "fight to the end" against fresh tariffs threatened by Trump.

US President Donald Trump said Monday the European Union's proposal for an exemption from tariffs on industrial products, including cars, is not enough to account for the transatlantic trade deficit.

"The European Union has been very, very bad to us, they don't take our cars, like Japan in that sense, they don't take our agricultural product. They don't take anything practically," Trump told reporters at the White House.

Last week, Trump announced a 20 percent tariff on European goods, in his all-out protectionist offensive, which is set to take effect April 9.

Trump's comments came in response to the proposal announced Monday by European Commission President Ursula von der Leyen, seeking a bilateral tariff exemption for cars and other industrial goods.

"We have proposed zero tariffs on industrial products... Europe is always ready to strike a good deal" with the United States, von der Leyen said during a press conference in Brussels.

But "we are also ready to respond with countermeasures and defend our interests" against Trump's trade offensive, she warned.

After United States imposed reciprocal tariffs on India, Congress MP Rajeev Shukla on Tuesday said that the economy has taken a wrong turn and strengthening the economy of the nation is very essential.

"The economy has taken a wrong turn. We had been saying earlier too that if this economy is not managed, it will have a huge impact on Indian trade, and employment opportunities will drastically reduce. Strengthening the economy is very essential," Shukla told ANI.

Earlier todat, questioning Prime Minister Narendra Modi's "silence" on the US imposing tariffs, Congress leader Pawan Khera on Tuesday said that the PM should make a statement to maintain people's confidence in the economy and stock market.

"The biggest concern is the Prime Minister's silence. The US is openly mocking our country, our stock market, our economy and the Prime Minister is silent. Canada, China, Taiwan, the UK, and the European Union have all responded in their own way or are preparing to respond. Here, we do not know, the opposition does not know, the people of the country do not know what the strategy is... The Prime Minister should make a statement to maintain people's confidence in the economy and the stock market. Everyone should be taken into confidence," Khera told ANI.

Tech billionaire and DOGE head Elon Musk made direct appeals to US President Donald Trump to reverse sweeping tariffs over the past weekend.

According to a report in Washington Post, which cited sources, Musk's efforts were unsuccessful.

US President Donald Trump's tariffs on Singapore are "not actions one does to a friend", the city-state's leader said Tuesday, adding the government will likely downgrade this year's economic growth forecast.

Prime Minister Lawrence Wong warned that the "likelihood of a full-blown global trade war is growing" and urged his trade-reliant nation to prepare for difficult times ahead.

"We are very disappointed by the US move, especially considering the deep and long-standing friendship between our two countries," he said in an address to parliament.

"These are not actions one does to a friend."

Trump last week announced sweeping levies on friends and foes alike after accusing the world of "ripping off" the United States for years.

Singapore was hit with a 10 percent tariff, despite a free-trade agreement (FTA) with the United States.

The rate is much less than those imposed on other countries.

China on Tuesday accused the United States of "pressure, threats and blackmail" after President Donald Trump floated additional tariffs of 50 percent on the world's second-largest economy.

"Tariff wars have no winners, and protectionism has no way out. Chinese people don't make trouble, but are not afraid of it. Pressure, threats and blackmail are not the right way to deal with China," foreign ministry spokesman Lin Jian said.

Questioning Prime Minister Narendra Modi's "silence" on the US imposing tariffs, Congress leader Pawan Khera on Tuesday said that the PM should make a statement to maintain people's confidence in the economy and stock market.

"The biggest concern is the Prime Minister's silence. The US is openly mocking our country, our stock market, our economy and the Prime Minister is silent. Canada, China, Taiwan, the UK, and the European Union have all responded in their own way or are preparing to respond. Here, we do not know, the opposition does not know, the people of the country do not know what the strategy is... The Prime Minister should make a statement to maintain people's confidence in the economy and the stock market. Everyone should be taken into confidence," Khera told ANI.

Asian stock markets witnessed a major sell-off on Monday after US President Donald Trump announced a new round of tariffs. The markets opened with heavy selling pressure, reflecting growing fears over the tariffs' impact on global trade and economic growth.

Reacting to the Congress Working Committee meeting and AICC session, Khera said that this session will be historic.

"This is going to be historic. Its results will also be historic. There is an atmosphere of despair in the country. The Congress is ready to take its responsibility to deal with that atmosphere of despair," the Congress leader said.

Asian markets advanced on Tuesday, with Japan’s Nikkei 225 share benchmark initially shooting up more than 6% after it fell nearly 8% a day earlier.
Markets in Thailand and Indonesia tumbled, however, as they reopened after holidays. Trading was suspended briefly in Jakarta when the JSX index fell more than 9%. It was down 7.5% by midday. Thailand's SET lost 5.7%.

In Taiwan, the Taiex lost 4.4%, pulled lower by losses for Taiwan Semiconductor Manufacturing Corp., or TSMC, the world's largest computer chip maker. Its shares fell 4% on Tuesday and are down 13.5% since Trump announced his “Liberation Day” tariffs on April 2.

The rebound for most other regional markets followed a wild day on Wall Street, where stocks careened after President Donald Trump threatened to crank his double-digit tariffs higher.

Early Tuesday, China's Commerce Ministry said it would “fight to the end” and take unspecified countermeasures against the United States to safeguard its own interests after President Donald Trump threatened an additional 50% tariff on Chinese imports.

By early afternoon Tokyo time, the Nikkei 225 was up 5% at 32,691.34.

Indonesian stocks tanked more than seven percent on Tuesday after a weeklong public holiday break, with trading briefly suspended at the open as uncertainty over US President Donald Trump's global tariffs roils markets.

Trump upended the world economy last week with sweeping tariffs that have raised fears of an international recession and triggered criticism even from within his own Republican Party.

The benchmark Jakarta Composite Index fell 9.19 percent at the open, down 598.56 points to 5,912.06 as markets in Southeast Asia's biggest economy reopened following a closure since March 28 because of public holidays.

It was their lowest level since June 2021, coming a day after global stock markets and oil prices collapsed further on a black Monday.

The sharp fall in Jakarta triggered a 30-minute trading suspension, a stock exchange spokesperson said in a statement.

When trading resumed, the market stabilised slightly to a drop of 7.82 percent as of 11 am (0400 GMT), just above the 6,000 mark.

The rupee stayed on sliding track and depreciated 7 paise to 85.83 against the US dollar in early trade on Tuesday due to massive withdrawal of foreign funds amid global economic turbulence triggered by the escalated tariff war. A recovery in crude oil prices pulled the domestic currency further down even as it found some cushion due to a weaker American currency and strong recovery in the domestic equity markets, forex traders said.

The global markets have been facing extreme volatility following a fresh threat by the US administration to impose a punitive 50 per cent tariff against China's retaliatory 34 per cent import levies on American products, they said, adding at the same time the domestic investors are keenly awaiting Reserve Bank of India's interest rate decision.

The RBI's monetary policy committee headed by Governor Sanjay Malhotra began its three-day deliberations on key interest rates on Monday. The decision is scheduled to be announced on Wednesday.

At the interbank foreign exchange, the rupee opened at 85.89 and strengthened slightly to trade at 85.83 against the greenback during initial deals, 7 paise lower than its previous closing level.

The rupee settled 32 paise lower at 85.76 against the US dollar on Monday after losing 14 paise in the preceding session on Friday.

Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, rallied strongly in opening trade on Tuesday a day after the terrible stock market crash. While BSE Sensex went above 74,300, Nifty50 was above 22,500. At 9:40 AM, BSE Sensex was trading at 74,163.30, up 1,025 points or 1.40%. Nifty50 was at 22,472.05, up 310 points or 1.40%.

Union minister for commerce and industry Piyush Goyal on Monday expressed confidence that India's industries will benefit from the recent tariff announcements made by US President Donald Trump amid the turmoil in global markets following its recent announcement.

Speaking to reporters during the FICCI's 98th Foundation Day celebrations, Goyal acknowledged the different sentiments expressed by the different sectors upon the tariff announcement and that India sees this as an opportunity.

"Every sector has a different sentiment. I am in communication with each one of them. The industries of India see opportunities in this. We are confident that India's gain is in it," he said.

Israeli Prime Minister Benjamin Netanyahu met with President Donald Trump in Washington on Monday, becoming the first foreign leader to visit Trump since he unleashed tariffs on countries around the world. Whether Netanyahu's visit succeeds in bringing down or eliminating Israel's tariffs remains to be seen, but how it plays out could set the stage for how other world leaders try to address the new tariffs.

Hong Kong leader John Lee said on Tuesday that US tariffs were "reckless" and undermined the international trade order, a day after the city's stock market saw its worst day in nearly three decades.

"The reckless imposition of tariffs affects many countries and regions around the world, with huge tax rate increases and covering a wide range of goods, disrupting the world economic and trade order, bringing great risks and uncertainties to the world," Lee told reporters, adding that the United States's "ruthless behaviour damages global and multilateral trade".

Indonesian stocks tanked more than nine percent at the open Tuesday following a long public holiday break, triggering a trading suspension as uncertainty over US President Donald Trump's global tariff policies roil markets.

The benchmark Jakarta Composite Index fell 9.19 percent, down 598.56 points to 5,912.06 as markets in Southeast Asia's biggest economy reopened after being closed since March 28 because of public holidays. Trading was suspended for 30 minutes, a stock market spokesperson said in a statement.

China on Tuesday vowed to retaliate against the United States if President Donald Trump goes ahead with his threat to impose fresh 50 per cent tariffs on Chinese imports.

Reacting to Trump's new threat, China hinted of imposing more retaliatory tariffs on American products. Beijing said that it will take countermeasures against US "to safeguard its own rights and interests."

Taiwan's benchmark index fell three percent in early trade on Tuesday, a day after a record fall as US President Donald Trump's sweeping tariffs triggered panic selling across global markets.

The Taiex index deepened its losses, as Taiwanese tech giant Foxconn dived nearly nine percent shortly after the open, while chipmaking titan TSMC was down more than two percent.

Shares in Hong Kong rose at the open on Tuesday, clawing back some of the massive losses suffered the day before after China retaliated against US tariffs, though Shanghai dropped further.

The Hang Seng Index added 1.66 percent, or 329.22 points, to 20,157.52, but the Shanghai Composite Index dipped 0.07 percent, or 2.31 points, to 3,094.26.

Investors took the opportunity to buy up beaten-down stocks after Monday's 13.2 percent rout wiped trillions off company valuations as US President Donald Trump's trade war ramps up recession worries.

Among the best performers on Tuesday were Alibaba's 3.5 percent advance and rival JD.com, which added more than eight percent -- though they plunged 18 percent and 15.5 percent respectively the day before.

However, there remains a lot of nervousness on trading floors after Beijing vowed to fight US tariffs "to the end", in response to Trump's threat to impose fresh levies of 50 percent on imports from the world's second-largest economy.

Nippon Steel shares soared Tuesday after US President Donald Trump launched a review of the company's proposed takeover of US Steel that was blocked by his predecessor Joe Biden.

Trump said Monday he had directed a government panel, the Committee on Foreign Investment in the United States (CFIUS), to conduct a review of the acquisition.

This will "assist me in determining whether further action in this matter may be appropriate", the president said in a White House memo to his Cabinet.

US Steel shares closed up 16 percent Monday, and Nippon Steel gained as much as 11 percent in Tokyo on Tuesday.

China threatened to “resolutely take countermeasures to safeguard its own rights and interests,” in response to President Donald Trump’s threat of an additional 50% tariff on Chinese imports.

The Commerce Ministry statement issued early Tuesday said the U.S.‘s imposition of “so-called ‘reciprocal tariffs’” on China is “completely groundless and is a typical unilateral bullying practice.”

China has taken retaliatory tariffs and the ministry hinted more many be coming.

“The countermeasures China has taken are aimed at safeguarding its sovereignty, security and development interests, and maintaining the normal international trade order. They are completely legitimate,” the ministry said. “The U.S. threat to escalate tariffs on China is a mistake on top of a mistake and once again exposes the blackmailing nature of the US. China will never accept this. If the US insists on its own way, China will fight to the end.”

Tokyo's Nikkei index surged nearly 6% in early Tuesday trade, rebounding from a sharp 7.8% drop the previous day, driven by volatility sparked by US tariffs. The Nikkei 225 gained 5.81% (1,809.92 points) to 32,946.50 yen, while the broader Topix rose 6.20% (141.82 points) to 2,430.48 yen. Seoul's Kospi index also gained nearly 2%.

US President Donald Trump's tariff actions have shaken global markets, stoking recession fears and drawing criticism, even from Republicans. Stock markets and oil prices continued to fall on Monday, following last week’s steep losses. Trump reiterated his stance, dismissing calls for a tariff pause.

However, analysts noted Nvidia’s stabilisation and the rising Philadelphia Semiconductor Index (SOX) could fuel Japanese semiconductor stock buybacks, with a weaker yen further supporting gains.

Asian stock markets showed signs of recovery on Tuesday, following a sharp downturn on Monday. Japan's Nikkei 225 rose by over 3%, rebounding from a 7.8% plunge the previous day. South Korea's Kospi index also gained nearly 2%, while Australia's ASX 200 opened slightly higher. The rally came after what one analyst described as a "bloodbath" in Asia-Pacific markets, sparked by concerns over President Trump's new tariffs on China. While these early gains offered some relief, markets are still volatile as investors await further developments, particularly in Shanghai, Hong Kong, and Taiwan, where exchanges are set to open later in the day. The broader impact of the US tariff threat remains uncertain, and how investors react will likely shape market sentiment throughout the Asia-Pacific region. Despite the recovery, Monday's dramatic losses continue to weigh on investor confidence.

The Chinese Embassy in the US issued a stern response on Monday to President Trump’s latest tariff threat, reiterating Beijing’s longstanding position and signalling its unwillingness to yield.

“We have made it clear multiple times that pressuring or threatening China is not the right way to engage with us,” stated Liu Pengyu, the embassy spokesperson. “China will firmly protect its legitimate rights and interests.”

The embassy also highlighted Beijing’s most recent stance, condemning the US tariffs and urging nations worldwide to "practice true multilateralism." It called for a united opposition to unilateralism and protectionism, advocating for the preservation of the UN-centred international system and the WTO-based multilateral trading framework.

Amidst the turbulence in global markets following the US tariff announcements, President Donald Trump has ruled out any possibility of a “pause” on tariffs during negotiations with other countries. Speaking during a bilateral meeting with Israeli Prime Minister Benjamin Netanyahu at the White House on Monday, Trump said, "We're not looking at that," reaffirming that the US would continue its pursuit of fair trade deals with other nations.

"We have many countries ready to negotiate with us, and they're going to be fair deals. In certain cases, they're going to be paying substantial tariffs," Trump stated, underscoring his commitment to maintaining a tough stance. He also criticised China for its retaliatory tariff hikes, warning, "If that tariff isn’t removed by tomorrow at 12 o'clock, we’re putting a 50% tariff on top of what we've already imposed."

Trump reiterated that his actions were aimed at addressing the US’s growing trade imbalances, highlighting the country’s debt of $36 trillion. He also made clear his respect for China but emphasised the importance of rectifying the situation, stating, "We have been destroyed by what they've done to our system."

Regarding the future of tariffs, Trump suggested that both permanent tariffs and ongoing negotiations could coexist. "There could be permanent tariffs, and there could also be negotiations," he said, stressing the need for fair deals.

The President also criticised the European Union’s trade practices, claiming that the EU was formed to challenge US interests and that it had been "very bad" to the US, particularly in relation to car exports. He noted, "The EU has been very tough over the years. They don’t take our cars, like Japan; they don’t take our agricultural products."

Meanwhile, European Commission President Ursula von der Leyen responded by offering "zero-for-zero" tariffs on industrial goods, suggesting the EU’s readiness for negotiations. She also warned that Europe would defend itself with countermeasures against any trade diversion resulting from US policies.

US President Donald Trump said Monday that the European Union’s proposal for an exemption from tariffs on industrial products, including cars, is insufficient to address the transatlantic trade deficit. "The European Union has been very, very bad to us; they don't take our cars, like Japan, and they don't take our agricultural products," Trump told reporters at the White House.

Last week, Trump announced a 20% tariff on European goods, which will take effect on April 9, as part of his protectionist agenda. His comments came in response to a proposal by European Commission President Ursula von der Leyen, who called for a tariff exemption on industrial goods like cars. Von der Leyen stated, "We have proposed zero tariffs on industrial products... Europe is always ready to strike a good deal," but warned the EU was prepared to retaliate.

Trump responded, suggesting that the EU’s trade deficit could "disappear quickly" if Europe committed to purchasing more American energy.

During a bilateral meeting with Prime Minister of Israel Benjamin Netanyahu, US President Donald Trump says, "...They can both be true. There could be permanent tariffs, and there could also be negotiations... We're going to get fair deals and good deals with every country — and if we don't, we're going to have nothing to do with them..."

China responded on Monday, asserting it would not yield to pressure or threats after US President Donald Trump pledged to impose an additional 50% tariff on Chinese goods if Beijing did not retract its planned countermeasures.

Liu Pengyu, spokesperson for China’s embassy in the United States, told AFP, "We have made it clear repeatedly that pressuring or threatening China is not the right way to engage with us. China will firmly protect its legitimate rights and interests."