Trump's Steep Tariffs Reignite Fresh Wave of Market Panic

Trump has said his government was working on 'tailored deals' with trading partners, with the White House saying it would prioritize allies such as Japan

- Agence France-Presse

BEIJING: US President Donald Trump reignited market turmoil on Wednesday as punishing tariffs on dozens of countries kicked in, with China set to retaliate after being hit with levies topping 100%.

Following the sweeping 10% tariffs that took effect over the weekend, the tax US importers pay to buy goods from the likes of the European Union, Japan and Vietnam rose dramatically higher overnight.

After some respite on Tuesday, stock markets were in panic mode again, with Tokyo's Nikkei index closing almost four percent lower on Wednesday while Paris, Frankfurt and London were down around three percent in their midday trading.

China — Washington's top economic rival but also a major trading partner — has been the hardest hit, with tariffs imposed on its products since Trump returned to the White House now reaching a staggering 104%.

In response, the Chinese foreign ministry promised to take "firm and forceful" steps to protect its interests, while its commerce ministry said the country had "abundant means" to fight a trade war.