logo
Trump's ‘Liberation Day' tariffs are now in effect—and Asia is taking the hardest hit

Trump's ‘Liberation Day' tariffs are now in effect—and Asia is taking the hardest hit

Yahoo09-04-2025

Donald Trump's new trading system is here. 'Liberation Day' tariffs went into effect at midnight Eastern time, imposing steep new taxes on goods from Asia, the world's manufacturing center. Asian stock markets mostly fell on Wednesday, ending a brief 'dead cat bounce' across the region's equity markets.
Trump's steepest tariffs fall on China, one of the U.S.'s largest trading partners. Tariff rates on China now total at least 104%: 20% tariffs related to fentanyl, 34% 'reciprocal tariffs,' and then a quickly imposed 50% tariff in response to China's retaliatory measures.
The steep tariffs will hit China's exports to the U.S., which will hurt the country's economic growth. On Tuesday, Citi cut its GDP growth forecast to 4.2%, down from 4.7%.
China will impose a flat 34% tariff on all U.S. imports on April 10, as part of a broader set of retaliatory measures against Trump's tariffs. Chinese officials have held firm, pledging to 'fight to the end' against Trump's tariffs.
The U.S. president has flip-flopped on his openness to a deal with China. In his social media post announcing a new 50% tariff on Chinese goods, Trump stated that all negotiations with China were off. Yet late on Tuesday, he affirmed that 'China also wants to make a deal, badly, but they don't know how to get it started. We are waiting for their call!"
Still, Chinese markets performed well on Wednesday. The CSI 300, which covers companies trading in Shanghai and Shenzhen, rose by 1.0%, as Chinese officials promised measures to bolster the stock market, deploying the "national team"—a nickname for sovereign wealth fund Central Huijin Investment—to the Chinese ETF market. Regulators are also encouraging state-owned companies to start share buybacks.
Hong Kong's benchmark Hang Seng Index rose around 0.7%, adding to a slight recovery following the market's massive stock drop, the worst since 1997, on Monday.
Japan and South Korea, which got tariffs of 24% and 25% respectively, failed to win exemptions in time, despite both major economies being prioritized by the White House for tariff negotiations.
Japan's benchmark Nikkei 225 index sunk by 3.9%, while South Korea's KOSPI dropped by 1.7%.
Trump officials have signaled some optimism that trade negotiations with Japan and South Korea will continue. 'Things are looking good,' Trump wrote on social media, following a call with Korea's acting president, Han Duck-soo.
Seoul is already preparing to support its auto industry, already reeling from 25% U.S. tariffs on imported cars. The government has promised $10.2 billion in support for the industry, and will encourage greater exports to the 'Global South', or markets in Africa, Latin America and Asia.
Taiwan's Taiex index dropped by 5.8% on Wednesday, the third straight day of sharp declines after Trump announced 32% tariffs against the island. Shares in Apple supplier Foxconn dropped by 10%, the daily limit, for the third time this week. (Foxconn heavily relies on Chinese factories, like its 'iPhone City' complex in Zhengzhou.)
The island has offered to cut its tariffs to zero and boost investment in the U.S.; it's also promised not to retaliate. On Tuesday, the island's government promised to tap into its $15 billion stock stabilization fund to restore investor confidence.
High U.S. tariffs on Southeast Asian countries also went into effect on Wednesday. Trump reserved some of his highest tax rates for the region, with Vietnam, Cambodia, Laos, and Myanmar all getting tariffs upwards of 40%.
Southeast Asian economies, particularly Vietnam, have benefited from 'China plus one' approaches to supply chain diversification. But that's now threatened by 'Liberation Day' tariffs. GDP growth in Vietnam, which relies on U.S. exports for 30% of its economy, might drop by a full 1.5 percentage points, Goldman Sachs estimated last week.
Vietnam has offered to cut its own tariffs on U.S. imports, but Trump officials like trade advisor Peter Navarro have already rejected the offer, as it won't address the underlying trade deficit. Economists argue that countries like Vietnam and Cambodia are just not sufficiently wealthy to buy enough U.S. goods to completely rebalance trade.
Leaders across Southeast Asia are now speaking out against Trump tariffs. Singapore prime minister Lawrence Wong on Tuesday blasted the tariffs as 'not actions one does to a friend,' and reaffirmed its status as a free trading hub. Earlier this week, Malaysia prime minister Anwar Ibrahim said he will 'lead efforts to present a united regional front' among the Association of Southeast Asian Nations.
This story was originally featured on Fortune.com

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Threats to Tesla's revenue are piling up
Threats to Tesla's revenue are piling up

Axios

time22 minutes ago

  • Axios

Threats to Tesla's revenue are piling up

Tesla faces fresh risks to a big income stream: sales of regulatory credits to other automakers under vehicle emissions and efficiency rules. Why it matters: Tesla's credit sales were $595 million last quarter and totaled $3.36 billion in the five quarters through Q1 of 2025. The credits are awarded to companies like Tesla that exceed emissions standards. Producers of gas-powered vehicles buy them to help meet various CO2 and mileage standards. The latest: Republicans on the Senate's commerce committee late last week proposed ending civil penalties under the Transportation Department's fuel economy rules. It's part of the committee's portion of the budget "reconciliation" bill — the top GOP and White House legislative priority. The provision would "modestly" cut auto prices by ending penalties on automakers that now "design cars to conform to the wishes of DC bureaucrats rather than consumers," a GOP summary states. The intrigue:"This Senate action would effectively end the market for CAFE credits," Chris Harto, a senior policy analyst at Consumer Reports, tells Axios via email. Dan Becker, who heads the Safe Climate Transport Campaign at the Center for Biological Diversity, noted: "Why buy credits if Trump gives you a get out of CAFE free card?" Driving the news: Separately, DOT on Friday issued an "interpretive rule" that bars consideration of EVs when it sets these mileage rules. It's a step toward crafting replacement standards, DOT said. This paves the way for less aggressive requirements — and less need for buying credits. State of play: Several buckets of credits benefit Tesla, the dominant U.S. EV seller. EPA emissions standards, Transportation Department fuel economy mandates, and California's ambitious clean cars program all provide opportunities. European emissions rules also generate credits. The big picture: The regulatory credit market was already facing risks before all the news late last week. EPA is planning to rescind Biden-era EPA carbon emissions rules for model years 2027 and onward. The House-passed reconciliation bill and the Senate GOP proposal would also nix them. And the House bill pulls back Biden-era DOT mileage rules. Both chambers have passed measures that end EPA's approval of California's auto emissions rules. Threat level: Potential loss of credit revenues comes at a perilous time for Tesla. Its sales have slumped in recent quarters, and CEO Elon Musk's rightward turn and alliance with Trump are among the reasons why, analysts say. The House plan ends $7,500 consumer purchase subsidies for EVs under the Democrats' 2022 Inflation Reduction Act. By the numbers: Credit revenues exceeded Tesla's overall profit last quarter — in other words, it would have been in the red without them. Yes, Q1 was atypically weak for Tesla, but consider Q4 of 2024, when Tesla reported $2.13 billion in profits that were helped along by $692 million in credit sales. In Q3, those numbers were $2.17B and $739M, respectively. Friction point: More broadly, the meltdown of Tesla CEO Elon Musk's relationship with Trump also creates new and unpredictable risks for the billionaire entrepreneur's business empire.

NIH employees publish ‘Bethesda Declaration' in dissent of Trump administration policies
NIH employees publish ‘Bethesda Declaration' in dissent of Trump administration policies

Yahoo

time23 minutes ago

  • Yahoo

NIH employees publish ‘Bethesda Declaration' in dissent of Trump administration policies

In October 2020, two months before Covid-19 vaccines would become available in the US, Stanford health policy professor Dr. Jay Bhattacharya and two colleagues published an open letter calling for a contrarian approach to managing the risks of the pandemic: protecting the most vulnerable while allowing others largely to resume normal life, aiming to obtain herd immunity through infection with the virus. They called it the Great Barrington Declaration, for the Massachusetts town where they signed it. Backlash to it was swift, with the director-general of the World Health Organization calling the idea of allowing a dangerous new virus to sweep through unprotected populations 'unethical.' Bhattacharya later testified before Congress that it – and he – immediately became targets of suppression and censorship by those leading scientific agencies. Now, Bhattacharya is the one in charge, and staffers at the agency he leads, the US National Institutes of Health, published their own letter of dissent, taking issue with what they see as the politicization of research and destruction of scientific progress under the Trump administration. They called it the Bethesda Declaration, for the location of the NIH. 'We hope you will welcome this dissent, which we modeled after your Great Barrington Declaration,' the staffers wrote. The letter was signed by more than 300 employees across the biomedical research agency, according to the non-profit organization Stand Up for Science, which also posted it; while many employees signed anonymously because of fears of retaliation, nearly 100 - from graduate students to division chiefs - signed by name. It comes the day before Bhattacharya is due to testify before Congress once more, in a budget hearing to be held Tuesday by the Senate appropriations committee. It's just the latest sign of strife from inside the NIH, where some staff last month staged a walkout of a townhall with Bhattacharya to protest working conditions and an inability to discuss them with the director. 'If we don't speak up, we allow continued harm to research participants and public health in America and across the globe,' said Dr. Jenna Norton, a program officer at the National Institute of Diabetes and Digestive and Kidney Diseases and a lead organizer of the Declaration, in a news release from Stand Up for Science. She emphasized she was speaking in a personal capacity, not on behalf of the NIH. The letter, which the staffers said they also sent to US Department of Health and Human Services Secretary Robert F. Kennedy Jr. and members of Congress who oversee the NIH, urged Bhattacharya to 'restore grants delayed or terminated for political reasons so that life-saving science can continue,' citing work in areas including health disparities, Covid-19, health impacts of climate change and others. They cited findings by two scientists that said about 2,100 NIH grants for about $9.5 billion have been terminated since the second Trump administration began. The NIH budget had been about $48 billion annually, and the Trump administration has proposed cutting it next year by about 40%. The research terminations 'throw away years of hard work and millions of dollars,' the NIH staffers wrote. 'Ending a $5 million research study when it is 80% complete does not save $1 million, it wastes $4 million.' They also urged Bhattacharya to reverse a policy that aims to implement a new, and lower, flat 15% rate for paying for indirect costs of research at universities, which supports shared lab space, buildings, instruments and other infrastructure, as well as the firing of essential NIH staff. Those who wrote the Bethesda Declaration were joined Monday by outside supporters, in a second letter posted by Stand Up for Science and signed by members of the public, including more than a dozen Nobel Prize-winning scientists. 'We urge NIH and Department of Health and Human Services (HHS) leadership to work with NIH staff to return the NIH to its mission and to abandon the strategy of using NIH as a tool for achieving political goals unrelated to that mission,' they wrote. The letter called for the grant-making process to be conducted by scientifically trained NIH staff, guided by rigorous peer review, not by 'anonymous individuals outside of NIH.' It also challenged assertions put forward by Kennedy, who often compares today's health outcomes with those around the time his uncle John F. Kennedy was president, in the early 1960s. 'Since 1960, the death rate due to heart disease has been cut in half, going from 560 deaths per 100,000 people to approximately 230 deaths per 100,000 today,' they wrote. 'From 1960 to the present day, the five-year survival rate for childhood leukemia has increased nearly 10-fold, to over 90% for some forms. In 1960, the rate of measles infection was approximately 250 cases per 100,000 people compared with a near zero rate now (at least until recently).' They acknowledged there's still much work to do, including addressing obesity, diabetes and opioid dependency, 'but,' they wrote, 'glamorizing a mythical past while ignoring important progress made through biomedical research does not enhance the health of the American people.' Support from the NIH, they argued, made the US 'the internationally recognized hub for biomedical research and training,' leading to major advances in improving human health. 'I've never heard anybody say, 'I'm just so frustrated that the government is spending so much money on cancer research, or trying to address Alzheimer's,' ' said Dr. Jeremy Berg, who organized the letter of outside support and previously served as director of the National Institute of General Medical Sciences at the NIH. 'Health concerns are a universal human concern,' Berg told CNN. 'The NIH system is not perfect by any stretch of the imagination, but has been unbelievably productive in terms of generating progress on specific diseases.'

Calif. to sue over National Guard deployment at protests
Calif. to sue over National Guard deployment at protests

Yahoo

time23 minutes ago

  • Yahoo

Calif. to sue over National Guard deployment at protests

Good morning, all. If your neck starts bothering you from all that screen time this week, try one of these stretches. Now, on to the news. Subscribe to get this newsletter in your inbox each morning. California Gov. Gavin Newsom said his state would sue the Trump administration today after it deployed 2,000 National Guard troops to L.A. over the weekend to quell protests against immigration raids. The deployment: Trump invoked a law under Title 10 of the U.S. Code to transfer National Guard control from California to the federal government in order to protect ICE — the first time since 1965 that they've been deployed without a state governor requesting it. [CNN] The protests: They began Friday after ICE detained at least 44 people in four raids. The ensuing protests grew increasingly violent, with demonstrators throwing rocks, blocking freeways and burning cars. Police responded by firing tear gas and using flash-bang grenades. [USA Today] Newsom responds: Newsom asked Defense Secretary Pete Hegseth to rescind the order, calling the deployment 'unlawful.' Trump's border czar, Tom Homan, said the raids would continue and threatened arrest for anyone who obstructs. 'Arrest me,' Newsom said. [Politico/NBC News] 🏀 Thunder rebound Thunder star Shai Gilgeous-Alexander tallied 34 points in Game 2 of the NBA Finals last night, leading his team to a decisive 123-107 victory against the Pacers and tying the series 1-1. SGA credited his team for the win. [Yahoo Sports] ➡️ Freedom Flotilla crew seized Israel seized a boat carrying humanitarian aid and detained Greta Thunberg and other activists who attempted to break Israel's long-standing blockade on Gaza, where nearly 2 million Palestinians are at risk of famine. [AP] 🍳 Egg recall The August Egg Company issued a voluntary recall of 1.7 million dozen of its brown cage-free eggs and brown certified organic eggs distributed in nine states. The FDA has linked the eggs to a salmonella outbreak that's sickened at least 79 people. [Delish] 🎭 Tony Awards highlights Sunset Blvd. star Nicole Scherzinger won Best Leading Actress in a Musical, Jonathan Groff straddled Keanu Reeves while performing and Oprah mentioned the Patti LuPone drama. Here are the most memorable moments. See who won. [Time/Variety] 🦓 Runaway equine After more than a week on the run, 'Ed,' the escaped zebra whose escapades went viral, was captured yesterday and airlifted to safety. See the photos. [USA Today/People] 📺 On the tube: Celebs and music stars gather for the 2025 BET Awards, airing at 8 p.m. ET on BET. Kendrick Lamar leads with 10 nominations, but here's who else is nominated. [Billboard] 🏒 On the ice, the Panthers and the Oilers try to break their 1-1 series tie in Game 3 of the Stanley Cup Final at 8 p.m. ET on TNT. [USA Today] ⚾ On the field, the I-5 rivalry continues when the Dodgers take on the Padres at 9:40 p.m. ET on the MLB app. [AP] ☀️ And don't forget to: Read your daily horoscope. Play the crossword. Check the forecast in your area. In 1993, Jurassic Park had its world premiere. More than 30 years later, Scarlett Johansson, a self-proclaimed 'geeked-out fangirl' of the film is set to star in the franchise's seventh installment, Jurassic Park: Rebirth. It's a casting that was 15 years in the making. [Hollywood Reporter] Psst: Father's Day is this Sunday. If you haven't gotten something for Dad yet, Yahoo Gifting Editor Amanda Garrity has some ideas. When you buy through links in this article, Yahoo may receive compensation. Amanda: If you can get your hands on the Nintendo Switch 2, then you'll be Dad's favorite. Other buzzy buys that I'm seeing include Lego's all-new Pixar lamp set, a smart meat thermometer and Hoka recovery slides. Amanda: Act fast and you'll still be able to get a custom photo book from Papier or this coffee table book from Wonderbly, which compiles newspaper headlines from Dad's birthday throughout the years. It's pretty cool! Amanda: I have tons in this gift guide! Every dad needs this leakproof backpack cooler ahead of the summer. Yahoo readers are also buying these battery storage systems and barbecue resting blankets in droves — what can I say: Dad loves a practical buy! Need more ideas? Amanda's got you covered. Sir J. Starks recently surprised his wife, Maurissa, with a six-minute Sephora shopping spree to celebrate their anniversary. The staff and fellow shoppers quickly joined in to help her fill her basket. 'The support staff just converged like the Avengers. It was wild,' Starks said. [People] Have a great day. See you tomorrow! 💡 P.S. Before you go, your daily advice: Give yourself at least three hours between dinner and bedtime to allow for proper digestion and improve the quality of your sleep. [Delish] About The Yodel: The Yodel is a morning newsletter from Yahoo News. Start your day with The Yodel to get caught up on weather, national news, politics, entertainment and sports — in four minutes or less. Did you like this morning's newsletter? Subscribe to have it sent to you on weekdays. By signing up, you agree to our Terms and Privacy Policy.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store