Trump’s 104% duty on China and other hefty levies take effect

[Such TV]

Trump’s 104% duty on China and other hefty levies take effect

Global markets are reacting to United States President Donald Trump’s so-called “reciprocal” tariffs, which took effect at 12:01am EST on Wednesday (04:01 GMT).

The US stock market fell sharply on Tuesday after Trump said import taxes on China would rise to 104 percent, with the benchmark S&P 500 and the tech-heavy Nasdaq Composite falling 1.57 percent and 2.15 percent, respectively.

Speaking at a dinner organised by the National Republican Congressional Committee earlier, Trump appeared to brush off the stock market turmoil caused by his tariffs.

“I’m proud to be the president for the workers, not the outsourcers; the president who stands up for main street, not Wall Street; who protects the middle class, not the political class; and who defends America, not trade cheaters all over the globe,” Trump said.

US stocks took a sharp dive on Tuesday, adding to last week’s heavy losses, with the benchmark S&P 500 and the tech-heavy Nasdaq Composite falling 1.57 percent and 2.15 percent, respectively.

While Asia’s stock markets are getting hammered across the board, Taiwanese stocks are experiencing steeper losses.

The island’s benchmark TAIEX index was down nearly 6 percent an hour after Trump’s tariffs came into effect.

Taiwan, the world’s top exporter of semiconductors, has been slapped with a 32 percent tariff.

On Tuesday, Trump threatened to hit Taiwan Semiconductor Manufacturing Company (TSMC) with a 100 percent tariff if the tech giant did not build a production plant in the US.

Vietnamese Deputy Prime Minister Ho Duc Phoc is set to hold talks with US Treasury Secretary Scott Bessent on Wednesday, the Reuters news agency has reported, citing an internal schedule.

Vietnam has been hit with a 46 percent tariff – one of the highest rates announced by Trump last week – and has been scrambling to negotiate a deal with the Trump administration.

On Monday, White House trade adviser Peter Navarro dismissed an offer by Hanoi to eliminate tariffs on US imports outright, saying that it “means nothing to us”.

As one of the world’s export-dependent economies, Vietnam is facing serious economic pain under Trump’s tariffs.

The Southeast Asian country’s exports of goods and services accounted for about 87 percent of its gross domestic product (GDP) in 2023, according to the World Bank.

The early reaction of Asian markets to the tariffs taking effect is in – and it’s not good.

Japan’s benchmark Nikkei 225 was down more than 4 percent shortly after the midnight deadline for the tariffs, extending its earlier losses.

South Korea’s KOSPI was down more than 1.5 percent after opening about 1 percent lower.

Trump’s sweeping “reciprocal” tariffs have taken effect against dozens of economies, in the biggest disruption to global trade since the 1930s.

The tariffs include a 104 percent duty on imports from China, along with double-digit levies targeting US allies and rivals alike.

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