Hours after Donald Trump threatened to impose additional 50 per cent tariffs on China, Beijing pledged to retaliate, in a tit-for-tat trade war with the US President, vowing to fight tariffs “to the end”.
“The US threat to escalate tariffs against China is a mistake on top of a mistake, which once again exposes the US’s blackmailing nature,” China’s Commerce Ministry said on Tuesday. “If the US insists on its own way, China will fight to the end.”
The ministry also said there were “no winners in a trade war”.
US stocks were mixed during a volatile trading session on Monday, as Mr Trump threatened to impose a new 50 per cent tariff on China, despite fears that his trade agenda will deliver an economic downturn.
“If China does not withdraw its 34 per cent increase above their already long-term trading abuses by tomorrow, April 8, 2025, the United States will impose additional tariffs on China of 50 per cent, effective April 9,” Mr Trump wrote on social media.
He imposed another 34 per cent duty on Chinese imports last week – set to go in effect Wednesday – as part of a broader tariff announcement that included a universal 10 per cent levy on all countries and harsher penalties for dozens. He has also placed a separate 20 per cent levy on China related to fentanyl trafficking.
The Dow Jones Industrial Average fell 349.26 points, or 0.91 per cent, after falling by more than 1,700 points earlier in the day. The S&P 500 closed 0.23 per cent lower after briefly entering bear market territory, while the Nasdaq Composite was up 0.10 per cent. The small-cap Russell 2000 slid 0.92 per cent.
Stocks briefly surged during morning trading on a false report that Mr Trump was considering pausing the tariffs by 90 days.
The yield on the 10-year Treasury gained about 21 basis points to 4.21 per cent, while the price of gold fell 1.19 per cent to $2,999.10 an ounce.
Global markets have been in free fall since Mr Trump unveiled the tariffs last week. His universal tariff took effect last Wednesday, while the higher “retaliatory” tariffs are due to start on Wednesday this week.
That has led to fears among investors of a recession and weakening business investment but an unrepentant Mr Trump defended the imposition of tariffs, saying “sometimes you have to take medicine to fix something”.
JP Morgan Chase chief executive Jamie Dimon warned of the inflationary pressures the tariffs are expected to cause. “Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth,” he wrote in his annual letter to shareholders.
Goldman Sachs raised its recession probability from 35 per cent to 45 per cent on Sunday night. Analysts said “we expect to change our forecast to a recession” if most of the April 9 tariffs do take effect.
Meanwhile, Britain's FTSE 100 dropped by 4.38 per cent, in a sell-off that began as soon as markets opened on Monday. Germany's Dax index was down 4.13 per cent and France’s CAC 40 dropped 4.78 per cent.
The Stoxx Europe 600 Index closed 4.5 per cent lower, extending losses after its biggest weekly decline since March 2020. All 20 sectors in the Stoxx 600 fell, with bank, energy and insurance shares among the biggest losers.
US President Donald Trump compared plunging global markets in response to his tariff policies to a necessary 'medicine'. Bloomberg
The global losses are a “wake-up call” that show there would “only be losers” at the end of any trade war, the German government's chief spokesman Steffen Hebestreit said on Monday. “We must now act smartly and act clearly to avoid … escalating a trade war,” he said.
Spain's Economy Minister Carlos Cuerpo said the EU should be open to all forms of retaliation. “We have the proper tools, the necessary tools to respond, so none of them should be discarded at this point,” he told Bloomberg television. “We’re open to negotiations, we’re open to trade, but we will not be naive.”
In a new research note, a group of analysts for Deutsche Bank said investors were pricing in a “growing probability of a US recession”.
Defence stocks, one of the best-performing industry groups this year, led the drop in Europe as investors built cash by selling winners. Rheinmetall lost 10 per cent and Hensoldt tumbled 12 per cent.
'It's a bloodbath': Gulf investors fear Trump tariffs will spark global financial hit
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024. It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine. Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages]. The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts. With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians. Following the single’s success, the idea to stage a rock concert evolved. Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world. The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
All Blacks line-up for third Test
J Barrett; I Dagg, A Lienert-Brown, N Laumape, J Savea; B Barrett, A Smith; J Moody, C Taylor, O Franks, B Retallick, S Whitelock, J Kaino, S Cane, K Read (capt).
Replacements: N Harris, W Crockett, C Faumuina, S Barrett, A Savea, TJ Perenara, A Cruden, M Fekitoa.
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
UAE currency: the story behind the money in your pockets
Family: I have three siblings, one older brother (age 25) and two younger sisters, 20 and 13
Favourite book: Asking for my favourite book has to be one of the hardest questions. However a current favourite would be Sidewalk by Mitchell Duneier
Favourite place to travel to: Any walkable city. I also love nature and wildlife
What do you love eating or cooking: I’m constantly in the kitchen. Ever since I changed the way I eat I enjoy choosing and creating what goes into my body. However, nothing can top home cooked food from my parents.
Favorite place to go in the UAE: A quiet beach.
Business Insights
As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
Your rights as an employee
The government has taken an increasingly tough line against companies that fail to pay employees on time. Three years ago, the Cabinet passed a decree allowing the government to halt the granting of work permits to companies with wage backlogs.
If wages are 10 days late, the new measures kick in and the company is alerted it is in breach of labour rules. If wages remain unpaid for a total of 16 days, the authorities can cancel work permits, effectively shutting off operations. Fines of up to Dh5,000 per unpaid employee follow after 60 days.
Despite those measures, late payments remain an issue, particularly in the construction sector. Smaller contractors, such as electrical, plumbing and fit-out businesses, often blame the bigger companies that hire them for wages being late.
The authorities have urged employees to report their companies at the labour ministry or Tawafuq service centres — there are 15 in Abu Dhabi.
Starring: Mads Mikkelson, Eddie Redmayne, Ezra Miller, Jude Law
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
The Land between Two Rivers: Writing in an Age of Refugees
Tom Sleigh, Graywolf Press
The Bio
Name: Lynn Davison
Profession: History teacher at Al Yasmina Academy, Abu Dhabi
Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
If you’re driving, make sure your insurance covers Oman.
By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
