LIVE: EU to put tariff retaliation on hold for 90 days to match Trump's pause

EU chief welcomes Trump's tariff pause but is quiet about bloc's own retaliatory duty plan

European Commission President Ursula von der Leyen on Thursday welcomed President Donald Trump's decision to temporarily halt most US tariffs, but she did not say whether the European Union intends to press ahead with its own retaliatory measures.

“I have authorised a 90 day PAUSE,” Trump said, after recognising the more than 75 countries that he said have been negotiating on trade and had not retaliated against his latest increases in tariffs. Countries subject to the pause will now be tariffed at 10%. The EU's rate was 20%, but it was not entirely clear how the 27-nation bloc would be impacted.

China was not included. Trump further jacked up the tax rate on Chinese imports to 125%.

Von der Leyen described the halt on reciprocal tariffs as “an important step towards stabilising the global economy. Clear, predictable conditions are essential for trade and supply chains to function.” Before Trump's announcement on Wednesday, EU member countries voted to approve retaliatory tariffs on $23 billion in goods in response to his 25% tariffs on imported steel and aluminum. The EU, the largest trading partner of the US, described them as “unjustified and damaging.” The tariffs are set to go into effect in stages, some on April 15 and others on May 15 and Dec. 1. The EU commission didn't immediately provide a list of the goods. The bloc's top trade official has shuttled between Brussels and Washington for weeks trying to head off a conflict.

But Von der Leyen gave no sign that the EU's timetable has changed.

China reaches out to others as Trump layers on tariffs

China is reaching out to other nations as the US layers on more tariffs, in what appears to be an attempt by Beijing to form a united front to compel Washington to retreat. Days into the effort, it's meeting only partial success from countries unwilling to ally with the main target of President Donald Trump's trade war.

Facing the cratering of global markets, Trump on Wednesday backed off his tariffs on most nations for 90 days, saying countries were lining up to negotiate more favorable conditions.

China has refused to seek talks, saying the US was insincere and that it will “fight to the end” in a tariff war, prompting Trump to further jack up the tax rate on Chinese imports to 125%. China has retaliated with tariffs on US goods of 84%, which took effect Thursday.

Trump's move was seemingly an attempt to narrow what had been an unprecedented trade war between the US and most of the world to a showdown between the US and China.

China has thus far focused on Europe, with a phone call between Premier Li Qiang and European Commission President Ursula von der Leyen “sending a positive message to the outside world.” The two are each other's largest trading partners.

“China is willing to work with the EU to jointly implement the important consensus reached by the leaders of China and the EU, strengthen communication and exchanges, and deepen China-EU trade, investment and industrial cooperation,” the official Xinhua news agency reported.

That was followed by a video conference between Chinese Commerce Minister Wang Wentao and EU Commissioner for Trade and Economic Security Šefcovic on Tuesday to discuss the US “reciprocal tariffs.” Wang said the tariffs “seriously infringe upon the legitimate interests of all countries, seriously violate WTO rules, seriously damage the rules-based multilateral trading system, and seriously impact the stability of the global economic order,” Xinhua said.

Asia shares jump after US stocks soared to historic gains

World markets soared on Thursday, with Japan's benchmark jumping more than 9%, as investors welcomed US President Donald Trump's decision to put his sharp tariff hikes on hold for 90 days, though he excluded China from the reprieve.

However, US futures edged lower and oil prices also declined. Chinese shares saw more moderate gains, given yet another jump in the tariffs each side is imposing on each others' exports.

In early trading, Germany's DAX gained more than 8% and benchmarks in London and Paris gained more than 6%.

Analysts had expected the global comeback given that U.S. stocks had one of their best days in history on Wednesday as investors registered their relief over Trump's decision.

On Thursday, Japan's benchmark Nikkei 225 jumped 9.1% to finish at 34,609.00, zooming upward as soon as trading began.

Australia's S&P/ASX 200 soared 4.5% to 7,709.60. South Korea's Kospi gained 6.6% to 2,445.06. Hong Kong's Hang Seng added 2.6% to 20,782.50. The Shanghai Composite rose 1.1% to 3,223.64.

Investors went “from fear to euphoria,” Stephen Innes, managing partner at SPI Asset Management, said in a commentary.

“It's now a manageable risk, especially as global recession tail bets get unwound, and most of Asia's exporters breathe a massive sigh of relief,” he said, referring to the tariffs on China, which Trump has kept.

On Wall Street, the S&P 500 surged 9.5%, an amount that would count as a good year for the market. It had been sinking earlier in the day on worries that Trump's trade war could drag the global economy into a recession. But then came the posting on social media that investors worldwide had been waiting and wishing for.

India should reconsider talks for trade pact with US, offer limited zero-to-zero tariff deal: GTRI

India should reconsider negotiating a comprehensive free trade agreement (FTA) with the US as it could pose challenges to domestic sectors like agriculture, automobiles and pharmaceuticals, think tank GTRI said on Thursday.

It cautioned that under trade pact with the US, many of Washington's demands such as weakening India's minimum price support system for farmers, allowing genetically modified food imports, lowering agricultural tariffs, changing patent laws to extend drug monopolies, and letting American e-commerce giants sell directly to consumers pose major risks.

The risks include harm to farmer incomes, food security, biodiversity, public health, and the survival of small retailers, the Global Trade Research Initiative (GTRI) said.

"Reducing tariffs on farm goods could affect the livelihoods of hundreds of millions, while slashing duties on cars could undercut a sector that accounts for nearly a third of India's manufacturing output. The collapse of Australia's car industry after deep tariff cuts in the 1990s offers a cautionary example," it added.

The remarks came in the backdrop of the USA's decision to defer imposition of additional 26 per cent import duty on India for 90 days. The 10 per cent baseline tariffs are there from April 5 on domestic goods entering the American market.

'Avoid a comprehensive FTA' 

"Avoid a comprehensive FTA with the US as it would force India to make damaging concessions. It's a deal that would cost India more than it gains. Restrict to zero-for-zero deal on 90 per cent industrial goods. Europe has offered a similar deal to the US," GTRI Founder Ajay Srivastava said.

He suggested building product value chains with China in sectors like chemicals, machinery, and electronics.

"By using each other's raw materials and intermediates, both countries (India and China) could add more local value to final goods... for domestic use and export. This kind of cooperation could offer near-term benefits and deserves attention at both government and industry levels," Srivastava said.

He added that India could propose a limited "zero-to-zero" tariff deal with the US on 90 per cent of industrial goods excluding sensitive items like cars.

'Stop unilateral concessions'

"If accepted by the US, this could evolve into a WTO (World Trade Organization)-compliant goods-only agreement. Stop offering unilateral concessions to the US," he said, adding India should prioritise free trade negotiations with the European Union, United Kingdom, and Canada, and consider broader partnerships with countries like China and Russia.

The government should also tackle domestic reforms such as simplifying tariffs, hassle-free and just implementation of quality control orders, improving GST processes, and streamlining trade procedures.

‘Xi a very smart man’: Trump expects phone call, deal from China after tariff hike

US President Donald Trump has called his Chinese counterpart Xi Jinping “a very smart man” while hinting that the latter may want to make a deal after the US imposition of 125 per cent retaliatory tariffs on Chinese goods.

"I think President Xi is a man who knows exactly what needs to be done. He's a very smart man. He loves his country. I know that for a fact. I know him very well," Trump told reporters at the White House.

"And I think he's going to want to make a deal. I think that's going to happen. We'll get a phone call at some point, and everything will be ready," he said, adding, “It is going to be a great thing for us, the world and for the humanity.”

Pause on US tariffs a big relief; provides window for trade talks: Indian exporters

The 90-day deferral of reciprocal tariffs decided by the US has come as a major relief as it provides a crucial window for pushing the talks on the proposed bilateral trade agreement between India and America, exporters said on Thursday.

They said that diplomatic engagement and fast-tracking negotiations for the trade pact will help India deal with these tariffs.

"It is a good decision by the Trump administration. We have been assured by the commerce ministry that the agreement will be finalised at the earliest," Federation of Indian Export Organisations (FIEO) President S C Ralhan said.

He added that the move reflects a strategic pause aimed at avoiding immediate economic fallout while allowing space for potential resolutions.

"A huge relief to our exporters. The 90-day deferral of the reciprocal tariff provides a critical window for diplomatic engagement and trade negotiations," Ralhan added.

Welcoming the USA's decision, Mumbai-based exporter S K Saraf said that Indian industry should take advantage of high tariffs on China as it can import intermediates at affordable prices and promote domestic manufacturing.

"For example in textiles, we can import different types of yarns from China and produce garments for exports. It's a good opportunity for the elephant and dragon to come together. I think the pause would be extended further beyond 90 days and things will be normalised," Saraf, who exports to the US, said.

Amid a global market meltdown, US President Donald Trump on Wednesday abruptly backed down on his tariffs on most nations for 90 days, but raised the tax rate on Chinese imports to 125 per cent.

However, the 10 per cent tariff will be there. It came into effect on April 5. The US had imposed additional import duty of 26 per cent on India.

In a meeting with industry and exporters on April 9, Commerce and Industry Minister Piyush Goyal asked exporters not to panic and assured them that India is working on the "right mix and right balance" in its proposed trade agreement with the US.

He has said the Indian team is working with "speed" but not in "undue haste" to ensure the right outcome for the country.

The two countries are negotiating a bilateral trade agreement (BTA) with an aim to more than double their trade to USD 500 billion by 2023 from about USD 191 billion at present. They are aiming to conclude the first phase by the fall (September-October) this year.

‘Do not retaliate’: White House warning to China after 125 pc tariff hike

After levying a 125 tax on all Chinese goods while putting a 90-day freeze on his US tariffs for other nations, the US government issued a stern warning to China to not retaliate this time.

“DO NOT RETALIATE AND YOU WILL BE REWARDED,” the White House said.

Unfazed by the threats, China imposed its 84 per cent duties on US imports, effective from 12.01 pm on Thursday.

In a stern rejoinder to US President Donald Trump, Beijing said it does not want a trade war, but will not sit quiet when its interests are being hurt.

“I want to emphasise that there is no winner in a trade war, and that China does not want a trade war. But the Chinese government will by no means sit by when the legitimate rights and interests of its people are being hurt and deprived,” Chinese state news agency Xinhua, quoted an official from the Commerce Ministry as saying on Wednesday.

'Dead cat bounce', 'bear market': 6 terms to know for trade war

Bulls, bears and dead cats are lurking in the background of President Donald Trump's trade war. As the effects of the administration's latest tariffs unfold, news consumers may confront unfamiliar terms related to investments or financial markets.

Here is a guide to some of the most common words:

Bear market: A bear market is a term used by Wall Street when an index such as the S&P 500 or the Dow Jones Industrial Average has fallen 20 per cent or more from a recent high for a sustained period of time.

Why use a bear to refer to a market slump? Bears hibernate, so they represent a stock market in retreat. In contrast, Wall Street's nickname for a surging market is a bull market, because bulls charge.

Dead cat bounce: When stocks rebound briefly in a moment of free fall or uncertainty, it's known as a “dead cat bounce". That's from the notion that even a dead cat will bounce when it falls from a great enough height. The market recovery tends to be temporary and brief, and the downturn tends to resume.

Capitulation: Capitulation refers to the point when investors give up on the idea of recouping their losses and sell, often out of fear and intolerance of falling prices. This tends to happen during times of low confidence and high uncertainty and volatility.

Capitulation can sometimes indicate the bottom of a market, but it's easier to identify in retrospect.

Recession: A recession is a time when the economy shrinks and unemployment rises.

Recessions are officially declared by the obscure-sounding National Bureau of Economic Research, a group of economists who consider factors such as hiring trends, income levels, spending, retail sales and factory output. The bureau's Business Cycle Dating Committee defines a recession as “a significant decline in economic activity that is spread across the economy and lasts more than a few months.” The organisation typically does not declare a recession until well after one has begun, sometimes as long as a year later.

Buy the dip: "Buying the dip” refers to purchasing a stock or buying into the market right after it has lost value, at a discount. The phrase is commonly used by retail investors. Unfortunately, it's all but impossible to time the market, to know where the bottom will be or how long a recovery will take.

10-year Treasury note: The 10-year Treasury bond yield is the interest rate the US government pays to borrow money for a decade. It's a key indicator of investor sentiment and economic conditions, and it helps set prices for all kinds of other loans and investments. The yield influences borrowing costs and signals expectations about inflation and economic growth.

Historically, Treasury bonds are considered one of the world's safest assets. That means investors often buy them when there's uncertainty in the market, which tends to lower the yield. Prices for the 10-year bonds tend to fall when confidence is high (and people buy assets perceived as riskier), which causes yields to rise.

In recent days, however, investors have sold Treasury bonds, which has sent the benchmark 10-year yield up. That could point to a lack of consumer confidence in Treasury bonds themselves, or any number of other factors. 

US, China locked in face-off over tariffs; no one wants to blink first

The tariff fight between the world's two largest economies spiralled into greater peril Wednesday as US President Donald Trump tried to narrow his global trade war into a direct and risky face-off with China.

As Trump reversed his larger “reciprocal” tariffs on most of the world in the face of recession fears, he nonetheless hiked his tariffs on China once again — to 125 per cent. The move locks the strategic rivals into a deepening standoff that endangers both their economies and interests around the world. The stakes are higher than ever, as the US and China are already embroiled in competition on everything from artificial intelligence to monetary policy to overall global influence.

Each nation dares the other to blink first. But the rounds of escalation are raising concerns that the window for diplomacy has narrowed even further, while the economic pain on both economies intensifies.

Behind it all, as usual, geopolitics lurks — the concerns about regional and global security that are always in play when economic relations between two of the world's most powerful nations turn aggressive.

“When you punch the United States of America,” said Karoline Leavitt, the White House press secretary, “President Trump is going to punch back harder.” A back-and-forth approach After Beijing responded to US President Donald Trump's 34 per cent “reciprocal” tax on China with the same 34 per cent rate on American goods, Trump raised the tariff by another 50 percentage points, only to be met by the same tariff hike by Beijing on Wednesday morning. US products going to China are now to be taxed 84 per cent.

Hours later, Trump declared that Chinese imports to the United States would be “immediately” taxed at 125 per cent, citing “lack of respect that China has shown to the World's Markets”.

“At some point, hopefully in the near future, China will realise that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” Trump wrote on his Truth Social platform.

Treasury Secretary Scott Bessent insisted this had been Trump's strategy all along and that Beijing has “shown themselves to the world as the bad actors.” While the financial markets rebounded from their deepest lows at the news that China would be facing the brunt of Trump's wrath, the real-world prospects of the intensifying trade war with China were still set to be significant.

On Wednesday, the US-China Business Council urged the two leaders to “come to the table” and talk. “Targeted tariffs to encourage China to come to the negotiating table are one thing, but these sweeping tit-for-tat tariffs are in no one's interests. They will significantly harm the global, US, and Chinese economies as well as American businesses, farmers, and consumers,” the council said.

Trump has left little room to negotiate an off-ramp with China, short of that country capitulating — which would be anathema to Chinese President Xi Jinping.

“Xi will not be forced into a call,” said Sun Yun, director of the China programme at the Washington-based think tank Stimson Centre. Only once in recent history, she noted, has a Chinese leader phoned the United States without invitation — after the 9/11 terrorist attacks. The trade tensions, if unchecked, could spill into other domains, she warned.

Craig Singleton, the senior China fellow at another Washington-based think tank, the Foundation for Defence of Democracies, agreed that a phone call from Beijing is “unlikely in this climate”.

“Each side believes time is on its side, which raises the risk that neither moves to de-escalate until real damage is done,” he said. “This is no longer about tariffs alone. It's a test of wills.”

Both sides have their calculations. Before Trump's announcement, Bessent called it “unfortunate that the Chinese actually don't want to come and negotiate.” “And I can tell you that this escalation is a loser for them,” Bessent said on Fox Business Network's “Morning with Maria” on Wednesday. “Their exports to the US are five times our exports to China. So, they can raise their tariffs. But, so what?” China has its own calculations. Its leadership, overseeing the world's second-largest economy, has vowed not to surrender to US bullying.

While Trump's higher-than-expected tariffs caught other countries by surprise, China says it has been prepared, having learned a lesson from its previous tariff dealings during Trump's first term. In response to Trump's several rounds of tariff raises, Beijing has responded swiftly each time with a package of tariff and non-tariff measures.

“We have been in a trade war with the United States for eight years and have accumulated rich struggle experience,” said an editorial by the ruling party's flagship newspaper People's Daily, dated Monday. The newspaper assured the Chinese public that “the sky will not fall”.

“Facing the impact of US tariff bullying, we possess strong resilience,” the party newspaper said, citing the country's reduced dependence on exports to the US market and new measures to boost domestic consumption.

Mexico, Brazil agree to strengthen trade ties in wake of Trump tariff turmoil

The leaders of Mexico and Brazil said on Wednesday they would work to strengthen trade between their nations — Latin America's two biggest economies — as a counterweight to US President Donald Trump's shifting positions on global tariffs that have thrown markets into chaos.

Mexican President Claudia Sheinbaum and Brazilian President Luiz Inácio Lula da Silva met on the sidelines of a regional summit in Honduras, where leaders strategised how to respond Trump's tariffs and escalating deportations, among other issues.

“We decided to further strengthen relations between our two countries by promoting regular meetings between our governments and the business sectors of Brazil and Mexico,” Lula said on X.

The meeting of 11 heads of state and 20 representatives from Latin America and the Caribbean, a bloc known as the Community of Latin American and Caribbean States, was marked by a call to put aside differences in the face of global tensions.

“Today more than ever is a good time to recognise that Latin America and the Caribbean require unity and solidarity,” Sheinbaum said during the summit.

Despite Trump's freeze on tariffs, resentment still simmers among many trading partners and US allies, which have started to look for other reliable trade alternatives in the face of uncertainty under the Trump administration.

Adding to the economic turmoil are also larger frustrations over Trump's deportation tactics, increasingly the subject of legal scrutiny and human rights criticisms, and moves by his administration that some say infringe on the sovereignty of foreign nations.

That has spanned from US Defence Secretary Pete Hegseth saying that Chinese presence in the Panama Canal represents a security threat, to recent reports that the Trump administration is studying the possibility of drone strikes against Mexican cartels, which Sheinbaum has sharply rejected.

“We do not agree with any kind of intervention or interference," she told reporters Tuesday in her morning news conference.