President Donald Trump’s sweeping tariffs on dozens of countries, including a 104% duty on Chinese goods, took effect Wednesday, escalating global trade tensions and prompting swift responses from both China and the European Union.
The new tariffs billed by the administration as “reciprocal” have upended long-standing global trade norms, triggered fears of a global recession, and erased trillions in market value from major companies worldwide.
Since Trump announced the measures last week, the S&P 500 has experienced its steepest decline since its inception in the 1950s and is now nearing a bear market, typically defined as a 20% drop from a recent peak.
U.S. Treasuries extended sharp losses, a signal that investors are selling even traditionally safe assets amid mounting uncertainty. The U.S. dollar also weakened against major global currencies.
European markets slipped further Wednesday, while U.S. stock futures pointed to continued declines. Most Asian markets also fell, though Chinese stocks managed to recover slightly, buoyed by state-led efforts to stabilize the market.
The European Union, which was also targeted by the U.S. tariffs, signaled that it would introduce retaliatory measures in the coming days, setting the stage for a deepening global trade conflict.