Global equity markets saw a dramatic reversal on Tuesday after U.S. President Donald Trump confirmed that the United States will raise tariffs on all Chinese imports to 104%, effective 12:01 a.m. ET on Wednesday, April 9. The move wiped out a massive relief rally and sent shockwaves across financial markets.
The Gift Nifty fell over 300 points from its intraday high, signaling a sharp drop for Indian markets on Wednesday. In the U.S., the Nasdaq Composite plunged 5% from its session high, while the Dow Jones Industrial Average gave up 3% from earlier gains. The S&P 500, which was up over 4% earlier in the day, slid into negative territory and last traded down 0.1%.
The reversal came after the White House confirmed that additional tariffs on China will be enforced starting Wednesday, escalating fears of a renewed trade war between the world’s two largest economies. Trump had earlier warned Beijing to withdraw its retaliatory tariffs by Tuesday or face a steep hike in U.S. import duties.
While markets began the session on a high note—buoyed by optimism over potential trade negotiations—those gains quickly unraveled as the tariff deadline approached with no signs of de-escalation. Trump’s insistence that China had until “12 o’clock” to remove its duties further added to investor anxiety.
The developments have dashed hopes of a near-term resolution to U.S.-China tensions and may trigger a prolonged period of volatility across global equities, commodities, and currencies.
Stay tuned for more live updates as markets react to the tariff hike and its broader economic implications.
