The US Federal Reserve chairman fears that Trump's tariffs could plunge the country into an economic crisis. China is responding with counter-tariffs. Meanwhile, the stock market plunge continues. Follow all developments in the live ticker.
For weeks, US President Donald Trump has threatened a comprehensive XXL tariff package – now he has unveiled his measures. They are unprecedented in their scope. A minimum tariff of 10 percent will be imposed on most imported goods – with a higher rate of 20 percent for goods from the EU. What happens next?
All developments following Trump’s tariff package at a glance:
7:47 PM – Trump wants to extend TikTok operations in the US by 75 days
US President Donald Trump wants to allow the video platform TikTok to continue operating in the US for another 75 days. He will sign an executive order to that effect, Trump said on Friday.
5:36 p.m. – US Federal Reserve Chairman warns of inflation, unemployment and economic slowdown
Federal Reserve Chairman Jerome Powell is highly critical of the XXL tariffs. He expects"higher inflation and slower growth" as well as rising unemployment, Powell said during an appearance in the US state of Virginia.
Fed Chairman Powell emphasized that, following the president's announcements on Wednesday, it is now clear that the tariff surcharges are"significantly higher than expected." The economic consequences are therefore also more severe. It is also"too early" for the interest rate cut demanded by Trump.
Trump wrote on his Truth Social network that it was the"perfect time" to cut interest rates. He addressed the Federal Reserve chairman by his first name,"Jerome," and urged him to "stop playing politics."
5:31 p.m. – Vietnam offers Trump zero percent tariffs
According to US President Donald Trump, Vietnam wants to reduce its own tariffs to zero percent if an agreement with the US is reached. He wrote on his short message service Truth Social that he had a"productive" phone call with To Lam, the general secretary of the Communist Party."I thanked him on behalf of our country and said I also look forward to meeting in the near future."
Vietnam has not yet commented. The US has imposed a tariff of 46 percent on the country, one of the highest ever.
16:20 – “We are dependent on this” – Finance Minister urges prudence in dealing with US tech companies
Acting Federal Finance Minister Jörg Kukies warns against hasty measures against American digital corporations."We're in a state of dependency there. It's sad and not good, but we have to consider what we'll replace them with if we make them more expensive," the SPD politician told "t-online." There are hardly any alternatives to US platforms like Instagram or Google.
"And we mustn't forget that we are not just end users of these corporations' services, but that many of our entrepreneurs use American cloud data centers due to a lack of alternatives." Despite the strained relations with the US administration under President Donald Trump, he urges calm."We see a willingness to negotiate; discussions are ongoing."
4:00 PM – Sewing fears recession in the US – and Germany – due to tariffs
Deutsche Bank CEO Christian Sewing fears the tariffs will place a severe burden on the global economy. He told the Frankfurter Allgemeine Sonntagszeitung that the risk of a recession in the US has become more likely this year."The same applies to Germany," he added.
"The announced tariffs are considerably stricter overall than the markets had expected," Sewing told the paper."According to our economists' calculations, the average tariff rate in the United States will rise to 28 percent, a level we saw around 1900," he added."If it stays at that level, it will initially place a significant strain on trade flows and economic development."
3:44 PM – “China has panicked,” says Trump
According to US President Trump, China has reacted incorrectly to his new tariffs. Regarding the 34 percent counter-tariffs on US goods, he writes:"China did it wrong. They panicked—the one thing they can't afford."
3:40 PM – Stock market crash in the US continues
The S&P 500 fell 2.7 percent, marking its worst day since the economic crisis caused by the coronavirus pandemic in 2020. The Dow Jones Industrial Average fell 1,000 points, and the Nasdaq Composite plunged three percent.
2:33 p.m. – Oil prices at four-year low
Prices for North Sea crude oil and US crude oil fell to their lowest levels since 2021. US tariff policy and China's response weighed on prices. A barrel (159 liters) of North Sea Brent crude for delivery in June cost $64.78, down $5.36 from the previous day. The price of a barrel of US WTI crude for delivery in May fell $5.64 to $61.32. Such relatively sharp downward movements could also lower the price of gasoline by a few cents – if oil companies pass on the price decline on the global market to consumers at gas stations.
2:25 p.m. – Top California politician wants exemptions from tariffs for California
According to a media report, California Governor Gavin Newsom plans to ask other countries to exempt products manufactured in the US state from retaliatory tariffs. Newsom will present corresponding plans later today, according to Fox News.
According to the statement, his administration will attempt to build"strategic" relationships with states that impose retaliatory tariffs. Newsom intends to respond to the tariff policy of US President Donald Trump. He is a member of the Democratic Party and is regularly discussed as a potential presidential candidate. Trump is a Republican. California is one of the largest economies in the world. Many technology companies are headquartered there.
1:37 p.m. – Expert on China tariffs: “The trade war is in full swing”
"So far, China has reacted defensively to past US tariff increases. Today's counterattack by China puts an end to that. The trade war between the US and China is in full swing," says Jörg Krämer, Chief Economist at Commerzbank."Renegotiations are likely to reverse only a small portion of the tariff increases. Trade between the US and China will collapse. Many Chinese companies are likely to try to sell some of the goods they can no longer sell in the US in Europe. This additional supply could somewhat reduce inflation here until the EU begins to defend itself against Chinese competition. Trade wars only produce losers."
1:08 p.m. – Lesotho fears “bloodbath on the labor market”
The trade minister of Lesotho, which was hit with the highest tariff rate of 50 percent, warns of a"carnage in the labor market" in the country of 2.3 million inhabitants. The economy of the small landlocked country in southern Africa depends heavily on the export of textiles and diamonds to the United States."We are in big trouble," said Trade Minister Mokhethi Shelile. He hopes Lesotho will be able to renegotiate with the administration of US President Donald Trump as soon as possible.
13:01 – Dax deeper in the red – bank shares plummet
The DAX continues to plummet. Following China's announcement of retaliatory tariffs on US goods, fears of a comprehensive trade war and a global recession have sent investors packing. The German benchmark index slumped by as much as 5.2 percent to 20,590 points at the end of the week, led by significant losses in bank stocks. For the week as a whole, the loss totaled a good 7.5 percent. The EuroStoxx50 fell 3.5 percent, and the Japanese stock market also continued its downward trend from the previous day.
12:48 p.m. – Economist no longer rules out “global recession”
"The global trade war is heating up," says Thomas Gitzel, Chief Economist at VP Bank."China is also reacting drastically, imposing tariffs of 34 percent on US goods. The EU will likely retaliate, drawing all major economic areas into a tariff war. The global economy will suffer significant damage as a result. A global recession can no longer be ruled out."
12:18 p.m. – China announces retaliatory tariffs on US goods
China is also imposing further surcharges of 34 percent on goods from the US, effective April 10. In addition, export controls will be introduced on seven rare earths, the Chinese Ministry of Commerce announced on Friday. These include gadolinium, used in magnetic resonance imaging, and yttrium, used in electronic devices.
The ministry further announced that China has also filed a complaint with the World Trade Organization (WTO) against the massive US import tariffs on Chinese goods. However, the Geneva-based international organization's dispute settlement mechanism has been blocked for years.
11:43 a.m. – Customs orders against TikTok deal? Trump hints at near deal
Shortly before a US deadline for the sale of TikTok expired, President Donald Trump spoke of an impending solution."We're very close to a deal with a very good group of people," Trump said on Thursday. TikTok faces a ban in the US if its Chinese parent company ByteDance fails to sell the immensely popular video platform.
The deadline for this expires Saturday at midnight US Eastern Time (6:00 a.m. CEST). Speaking on Air Force One, Trump said of the possible solution for TikTok that"multiple" investors are involved. He did not provide details. Vice President J.D. Vance told Fox News that Trump would announce the TikTok ruling before the deadline.
Trump hinted that TikTok could be part of a deal with China addressing US tariffs on Chinese imports. Asked whether he would be willing to negotiate tariffs with countries, the president said,"As long as they give us something good. For example, TikTok."
11:27 a.m. – Green Party leader wants to focus on tech companies
Green Party leader Franziska Brantner advocates not only considering European counter-tariffs in the tariff dispute, but also countering US tech companies with other legal means. Brantner told the news channel WELT TV:"In case of doubt, antitrust law, competition law, our digital law apply – these must also be applied. Of course, with an eye on the tech oligarchs, that's also clear. Incidentally, this can also be done without tariffs. And then we have other counter-tariffs, countermeasures that we can take."
Overall, Europe must make a counter-offer to the rest of the free world to the US course, Brantner demands. Europe must"show what we can do" and that it makes sense "to invest in our technologies and our know-how, to clear the way for good ideas and innovative strength."
08:45 – Economists fear “inflation shock” in the USA
Economist Ulrike Malmendier expects Donald Trump to face domestic political pressure due to the impact of his tariff policy. Americans are not prepared to forgo prosperity, the economist from the University of California, Berkeley, told Deutschlandfunk.
However, the US is facing an"inflationary shock," and this will be attributed to the Trump administration."If I can no longer put food on the table for my family, if I'm worried about my daily expenses, that affects me directly." The question is how Trump deals with it.
08:08 – Asian stock markets collapse – chip industry on a downward spiral
Asian stock markets also collapsed at the end of the week under the weight of the tariffs. In Tokyo, the 225-stock Nikkei index fell 2.6 percent, and the broader Topix index closed 3.5 percent lower.
In Japan, chip industry stocks plunged on Friday, with Advantest and Tokyo Electron falling seven percent and four percent, respectively. All but four of the Tokyo Stock Exchange's 33 industry sub-indices declined, with the banking index performing the worst, falling 6.4 percent.
Bank of Japan (BOJ) Governor Kazuo Ueda said the central bank will closely examine the impact of US tariffs on the country's economy when setting monetary policy. He also warned that the higher levies are likely to weigh on global and domestic economic growth.
The Shanghai Stock Exchange remained closed. The index of major companies in Shanghai and Shenzhen was also closed.
07:51 – “Every country has called us” – Trump appears open to tariff reductions
Donald Trump appears open to reducing the announced tariffs, but only if countries offer something"phenomenal."
Trump said he was pleased with the falling interest rates and believed the economic turmoil would subside."The tariffs give us great negotiating power," Trump said, adding,"Every country has called us."
When asked whether he would consider giving in, the US president said it depends."If someone says we'll give you something that's so phenomenal, as long as they give us something that's good."
04:01 a.m. – US tariffs: Lies fears negative consequences for the economy
Lower Saxony's Minister of Economic Affairs and designated Minister-President Olaf Lies fears the negative impact of the tariffs on his state."I view this with great concern, because every action inevitably triggers a reaction," the SPD politician told the "Hannoversche Allgemeine Zeitung." The goal must be to break the threatening spiral.
"We must not deviate from the proven and successful standards of free global trade," Lies emphasized. The USA is an extremely important export market for Lower Saxony."This is not just about the automotive industry, but about many products and sectors," said the SPD politician.
00:46 – IMF chief: US tariffs pose “significant risk” to global economy
The head of the International Monetary Fund (IMF) describes the announced new import tariffs as a"significant risk" to the global economy. They"clearly pose a significant risk to the global outlook" at a time of weak growth, Kristalina Georgieva said on Thursday. It is important to avoid steps that could cause further damage to the global economy.
00:41 – Trump on the stock market crash: “It’s going very well!”
The US stock markets are on a downward spiral. Trump's optimism, however, remains undiminished."I think things are going very well," he said on Thursday after the Dow Jones fell by more than 1,600 points—a plunge not seen since the coronavirus pandemic. But the US president maintains his course is the right one:"The markets will boom, stocks will boom, the country will boom."
Thursday, April 3:
10:43 PM – Trump: Expected stock market crash
Donald Trump declared on Air Force One that he had expected the markets to plummet following his tariff decision. However, the move was necessary to heal the American economy, which he described as a sick patient. Trump said he was open to tariff negotiations if other countries offered something"phenomenal." Wall Street's major indices fell Thursday by the most since the early days of the pandemic.
9:49 PM – US advisor: China will not stop drug deliveries
A senior advisor to Donald Trump expressed confidence that China will not cut off pharmaceutical shipments to the US in retaliation for the new US tariffs. There are many other places from which medicines can be obtained, said Kevin Hassett, head of the National Economic Council, in response to a question on this matter to Fox News."I don't think people need to be concerned about it, and I don't think they would be," he said, referring to China. There was no immediate comment from the People's Republic.
18:50 – Macron calls for a temporary renunciation of investments in the USA
French President Emmanuel Macron has called for a temporary suspension of investments in the US. Planned and future investments in all sectors should be postponed"until the situation with the US is resolved," Macron said at the start of a meeting with representatives of the sectors particularly affected in France on Thursday in Paris. He said it is inappropriate to invest billions of euros in the US economy"while it is hitting us."
Macron called the US tariffs "brutal and useless." "You don't correct trade deficits with tariffs," he said. Moreover, the tariffs are not only an attack on international trade, but also"on the idea we have of our alliance with the US," he said. In the medium term, this means"a considerable change in the balance of the world."
16:48 – Italy wants to relieve the European car industry
Italy wants to suspend regulations to reduce industrial emissions to relieve the burden on the European auto industry, which has been particularly hard hit by US tariffs. Industry Minister Adolfo Urso announced before Parliament in Rome that he would lobby the European Union for this. A corresponding request will be submitted to the EU.
3:53 PM – “The operation is over! The patient is alive,” says Trump – but the Dow Jones collapses
US President Donald Trump believes the US is on the right track after announcing his massive tariffs."The surgery is over! The patient is alive and on the mend. The prognosis is that the patient will be much stronger, bigger, better, and more resilient than ever before," Trump wrote in capital letters on his Truth Social platform.
The markets, however, see things differently. Investors reacted to the announcement with large-scale stock sales. The leading Dow Jones Industrial Index lost 2.7 percent to 41,098 points at the start of trading. The losses were even greater on the Nasdaq Stock Exchange, which is dominated by large technology stocks. The Nasdaq 100 Index slumped 3.9 percent to 18,828 points, its lowest level since September of last year. The S&P 500 slipped 3.2 percent to 5,487 points. This broad-based index also found itself at its lowest level since September 2024.
