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(NEW YORK) — U.S. stocks seesawed between gains and losses in early trading on Friday as new Chinese tariffs on American goods intensified a trade war between the two largest economies in the world.

The Dow Jones Industrial Average dropped 103 points, or 0.25%, while the S&P 500 fell 0.2%. The tech-heavy Nasdaq declined 0.07%.

Meanwhile, a selloff of 10-year Treasuries sent yields climbing to 4.55%. That figure exceeded a recent high attained hours before President Donald Trump announced on Wednesday a 90-day delay of so-called “reciprocal tariffs” for most U.S. trade partners.

The market turmoil Friday morning came after China issued a 125% U.S. tariff, though Beijing said it would not increase tariffs further. The move came in response to a 145% tariff on Chinese goods announced by Trump earlier this week.

In a social media post, Trump signaled confidence.

“We are doing really well on our TARIFF POLICY. Very exciting for America, and the World!!! It is moving along quickly,” Trump said on Truth Social.

U.S. markets closed Thursday with notable losses, a reversal from the enthusiasm unleashed by Trump’s Wednesday decision to pause some tariffs.

Several Asian stock markets slid back into the red on Friday morning, reversing gains made on Thursday amid continued uncertainty as to whether nations would be able to secure deals with Trump to avoid long-term tariffs — and as China announced new retaliatory tariffs on American goods.

Tokyo’s Nikkei 225 index slipped 3.8% and Japan’s broader TOPIX index fell 3.5%. In South Korea, the KOSPI dropped nearly 1% and Australia’s S&P/ASX 200 dipped 0.95%.

In China, markets fluctuated as investors responded to the White House clarifying that the level of tariffs on Chinese goods is now 145% — not 125% as previously believed.

Hong Kong’s Hang Seng index rose 2%, Shanghai’s Composite Index rose 0.6% and Shenzen’s Component Index rose 1.2%, with investors buoyed by Beijing’s announcement of stimulus measures to bolster the economy against the escalating American tariffs.

Other prominent Asia indices in the green on Friday included Taiwan’s Taiex index up 2.7% and India’s NIFTY 50 up 1.9%.

European markets appeared hesitant upon opening and slipped after China announced it would increase tariffs on U.S. goods from 84% to 125% from Saturday.

The pan-European STOXX 600 fell 0.3%, Germany’s DAX fell 0.2%, France’s CAC 40 fell 0.16% and Britain’s FTSE 100 slid 0.03%.

On Thursday, Trump again hinted at the resumption of his sweeping tariffs.

“If we can’t make the deal we want to make or we have to make or that’s, you know, good for both parties — it’s got to be good for both parties — then we go back to where we were,” Trump said.

When asked if he would extend the 90-day pause, the president responded, “We’ll have to see what happens at the time.”

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(NEW YORK) — U.S. stocks inched lower in early trading on Friday as new Chinese tariffs on American goods intensified a trade war between the two largest economies in the world.

The Dow Jones Industrial Average dropped 96 points, or 0.25%, while the S&P 500 fell 0.1%. The tech-heavy Nasdaq declined 0.05%.

China issued a 125% U.S. tariff early Friday morning, but Beijing said it would not increase tariffs further. The move came in response to a 145% tariff on Chinese goods announced by President Donald Trump earlier this week.

U.S. markets closed Thursday with notable losses, a reversal from the enthusiasm unleashed by Trump’s Wednesday decision to delay so-called “reciprocal tariffs” on most American trading partners for 90 days.

Several Asian stock markets slid back into the red on Friday morning, reversing gains made on Thursday amid continued uncertainty as to whether nations would be able to secure deals with Trump to avoid long-term tariffs — and as China announced new retaliatory tariffs on American goods.

Tokyo’s Nikkei 225 index slipped 3.8% and Japan’s broader TOPIX index fell 3.5%. In South Korea, the KOSPI dropped nearly 1% and Australia’s S&P/ASX 200 dipped 0.95%.

In China, markets fluctuated as investors responded to the White House clarifying that the level of tariffs on Chinese goods is now 145% — not 125% as previously believed.

Hong Kong’s Hang Seng index rose 2%, Shanghai’s Composite Index rose 0.6% and Shenzen’s Component Index rose 1.2%, with investors buoyed by Beijing’s announcement of stimulus measures to bolster the economy against the escalating American tariffs

Other prominent Asia indices in the green on Friday included Taiwan’s Taiex index up 2.7% and India’s NIFTY 50 up 1.9%.

European markets appeared hesitant upon opening and slipped after China announced it would increase tariffs on U.S. goods from 84% to 125% from Saturday.

The pan-European STOXX 600 fell 0.3%, Germany’s DAX fell 0.2%, France’s CAC 40 fell 0.16% and Britain’s FTSE 100 slid 0.03%.

On Thursday, Trump again hinted at the resumption of his sweeping tariffs.

“If we can’t make the deal we want to make or we have to make or that’s, you know, good for both parties — it’s got to be good for both parties — then we go back to where we were,” Trump said.

When asked if he would extend the 90-day pause, the president responded, “We’ll have to see what happens at the time.”

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(WASHINGTON) — President Donald Trump’s decision to pause so-called “reciprocal tariffs” for most countries triggered a historic stock market rally on Wednesday, but the levies that remain in place are still expected to hike prices and put the U.S. at risk of a recession, experts told ABC News.

Alongside the suspension of some tariffs, Trump increased duties on Chinese goods to a total of 145%, marking a significant escalation of a trade war between the two largest economies in the world.

Stock markets plunged on Thursday as investors digested Trump’s tariff announcement, slashing roughly half of the previous day’s rally.

The high tariffs on China, the third-largest U.S. trade partner, are expected to raise prices for an array of widely used products, including smartphones, shoes, clothes and video game systems, experts said.

Plus, experts added, the extra costs for U.S. shoppers and a general sense of policy uncertainty increases the likelihood of an economic downturn.

“China is not the only country we trade with but they are an important trading partner for a lot of goods,” Christopher Conlon, a professor of economics at New York University who studies trade, told ABC News.

Even after Trump paused some tariffs, U.S. consumers face an average effective tariff rate of 25.2%, the highest since 1909, the Yale Budget Lab found in report on Thursday. An effective tariff rate factors in the impact of tariffs on imports of finished goods as well as inputs used by domestic firms.

In addition to the tariffs on Chinese goods, the White House kept in place an across-the-board tariff of 10% on nearly all imports. The U.S. also continues to impose 25% levies on foreign autos, aluminum and steel.

Goods from Mexico and Canada face tariffs of 25%, though the measure excludes products covered under the United States-Mexico-Canada Agreement, or USMCA.

Current tariffs are expected to hike prices by an additional 2.7% in 2025, costing consumers on average about $4,400 per household over that time, the Yale Budget Lab said.

“Higher tariffs will push prices up significantly over the next year or so,” Preston Caldwell, chief U.S. economist at Morningstar, told ABC News in a statement on Thursday.

On Thursday, the White House said U.S. tariffs on China stand at 145%, more than the 125% levy that had been widely reported a day earlier.

At the previous tariff level of 125% for Chinese goods, the cost of a nearly $60 car seat would’ve increased an average of $132.75 for a new price of about $192, according to the left-leaning Center for American Progress, or CAP. A Playstation 5 video game system, meanwhile, would’ve increased $623.75 for a new price of roughly $1,122, CAP found.

Under the current 145% tariffs, those price increases would rise further.

Smartphone prices are also expected to rise, experts said. China accounted for more than four of every five of smartphones imported into the U.S. last year, S&P Global said in a note to clients on Thursday.

Experts told ABC News they anticipate price hikes will coincide with an elevated risk of a recession.

They pointed to risks of a slowdown for businesses mired in higher tax costs, as well as a shopping slump as consumers curtail spending to pad their savings to help weather price increases and a possible economic downturn.

“It was encouraging to see the President reverse himself on the so-called “reciprocal” tariffs yesterday, but I wouldn’t take much solace in it as the global trade war continues to rage,” Mark Zandi, chief economist at Moody’s Analytics, said in a post on X. “I still put the odds of a recession this year at 60%.”

The view echoed a note J.P.Morgan sent to clients hours after Trump’s tariff pause on Wednesday.

“The drag from trade policy is likely to be somewhat less than before, and thus the prospect of a recession is a closer call,” J.P.Morgan said. “However, we still think a contraction in real activity later this year is more likely than not.”

For now, the economy remains in solid shape by several key measures.

The unemployment rate stands at a historically low level. Meanwhile, inflation cooled in March, putting price increases well below a peak attained in 2022, fresh data on Thursday showed.

Meanwhile, hiring surged in March, blowing past economists’ expectations and accelerating job growth from the previous month.

Conlon, of New York University, said the likelihood of a recession eased after Trump’s tariff pause but the risk of a downturn remains elevated.

“A lot of the permanent disruption and damage has been done, mostly because you’ll see consumers and companies react to this uncertainty by pulling back,” Conlon said. “People will be way less likely to go out and make big-ticket purchases because of recession fears and that can be self-perpetuating.”

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(NEW YORK) — Consumer prices rose 2.4% in March compared to a year ago, marking a cooldown during a period that preceded the recession warnings and market turmoil following President Donald Trump’s recent escalation of tariffs. The reading came in lower than economists expected.

Even as overall cost hikes slowed, egg prices soared 60% higher than a year prior. Bird flu has decimated the egg supply, lifting prices higher.

The cooldown is owed in part to a drop in energy prices, as gasoline prices fell about 6% from the previous month, U.S. Bureau of Labor Statistics data showed. Food prices rose 0.4% compared to the previous month, however, putting upward pressure on the cost of living.

Core inflation — a closely watched measure that strips out volatile food and energy prices — increased 2.8% over the year ending in March, which registered the lowest one-year gain in that index since March 2021, data showed.

The fresh data arrives a day after a day after Trump paused some tariffs and U.S. stocks rallied.

In February, year-over-year inflation rose 2.8% compared to a year prior.

Trump last week issued 10% tariffs on imports from nearly all countries, as well as so-called “reciprocal tariffs” targeting about 75 nations — but Trump announced a 90-day pause of those reciprocal tariffs on Wednesday.

Alongside the pause of some tariffs, Trump announced additional tariffs on China, increasing the cumulative duties on Chinese goods from 104% to 125%. The escalation came in response to a fresh round of tariffs from China that raised levies on U.S. goods to 84%.

Economists widely expect the tariffs that remain in place to increase prices for some consumer goods, though the exact timing and extent of the price hikes remain unclear.

Last month, Federal Reserve Chair Jerome Powell said Trump’s tariffs were partly to blame for price increases that had taken place in February.

Despite escalating trade tensions and market turbulence since Trump took office in January, the economy remains in solid shape by several key measures.

The unemployment rate stands at a historically low level. Meanwhile, inflation sits well below a peak attained in 2022, though price increases register nearly a percentage point higher than the Fed’s goal of 2%.

Hiring surged in March, blowing past economists’ expectations and accelerating job growth from the previous month, government data last week showed.

Key indicators “still show a solid economy,” Powell said on Friday.

However, tariffs threaten to derail hiring and worsen inflation, multiple analysts previously told ABC News, before Trump paused “reciprocal tariffs” for 90 days.

Far-reaching levies increase the likelihood of a recession by driving up prices, sapping consumer spending, slowing business activity and risking layoffs, they said.

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(NEW YORK) — U.S. stocks surged on Wednesday after President Donald Trump announced a 90-day pause in some tariffs.

The Dow Jones Industrial Average climbed 2,370 points, or 6.3%, while the S&P 500 soared 7.4%. The tech-heavy Nasdaq jumped 9.6%.

President Donald Trump’s latest batch of levies on China increased the cumulative rate of tariffs on Chinese goods to 104% — a move met with retaliatory tariffs in Beijing that raised tariffs on U.S. goods to 84%.

European Union countries on Wednesday backed the European Commission’s proposal to push back on Trump’s tariffs on steel and aluminum with a set of countermeasures.

The latest U.S. tariffs came into force with key Asian markets already open. In Japan, the Nikkei index dropped more than 5% in response, while the broader TOPIX index slipped 4.6%. The Nikkei closed down 3.93% and the TOPIX down 3.4%.

Stocks in Taiwan fell more than 5.7%, Singapore’s STI index slipped 2.4%, South Korea’s KOSPI index lost 1.8%, Australia’s S&P/ASX 200 lost 1.8% and India’s NIFTY 50 dropped 0.4%.

In China, Hong Kong’s Hang Sen index slipped 0.4%. Shanghai’s SSE Shanghai Composite Index — which has fewer international investors and is buoyed by the state-owned investors known as the “National Team” — posted gains of 1.1% despite the new tariffs. Shenzhen’s SE Composite rose 2.2%.

In Europe, key indices dropped on opening.

The British FTSE 100 dropped by 2.2%, Germany’s Dax index dropped 2.3%, France’s CAC 40 fell by 2.4% and Spain’s Ibex index was down 2%. The pan-European STOXX index was down 2.6%.

United States stocks closed lower on Tuesday, marking a major reversal from a rally that sent the S&P 500 and Nasdaq up more than 4% earlier in the day.

The Dow Jones Industrial Average closed down 320 points, or 0.8%, while the Nasdaq dropped 2.1%.

The S&P 500 fell 1.5%, putting the index on the brink of a bear market, a term that indicates a 20% drop from a previous peak.

The move lower on Tuesday resumed a selloff that stretches back to Trump’s tariff announcement last week. Since then, the S&P 500 and Nasdaq have each fallen more than 12%.

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(RALEIGH, N.C.) — In the Research Triangle area in and around Raleigh, North Carolina, home sales and construction development are booming as thousands flock to the area in search of affordable homes close to work.

However, the severe tariffs President Donald Trump put on virtually all U.S. trading partners have created uncertainty within the U.S. housing market.

Leonard Windham, a Raleigh area realtor, gave ABC News a tour of a new housing development in Youngsville — an up-and-coming town just 20 miles north of Raleigh.

“In the real estate industry, we’re just not sure what’s going to happen,” Windam said. “If there’s a possibility, of course, as the price of construction material goes up, it could affect the home price.”

Realtors and homebuilders told ABC News they are moving forward with their spring housing market goals despite not knowing how the new tariffs could impact costs.

Tariffs may change home construction as we know it, as rising costs could potentially encourage construction companies and developers to invest in American manufacturing.

Alex Yost, vice president of the North Carolina Home Builders Association, told ABC News he is rethinking where to source materials when building new homes.

“We’re going to be looking at pricing. We’re going to be making sure that our clients get the value that they want and need,” he said. “And so, to the extent that Chinese light fixtures end up costing more, then that’s certainly going to factor into the decisions that we make, absolutely.”

Yost noted that his primary concern is if and how tariffs will affect their building material supply chain, but he’s also worried about consumer confidence.

“Last week’s news about the market is probably going to cause some buyer confidence gaps, and so we are concerned,” he said. “Mostly, what we’re concerned about is that buyers feel good about making the acquisition of a new home, and we build luxury homes, but the entire marketplace is built on people buying the most expensive thing they ever bought. They’ve got to feel good going into it.”

Homebuilders breathed a collective sigh of relief after Trump exempted major construction materials like Canadian lumber and Mexican gypsum from retaliatory tariffs. However, costs will rise for imported steel, aluminum, copper, home appliances and other building materials sourced abroad.

Builder confidence in newly built single-family homes is at the lowest level it’s been in seven months, according to the National Association of Home Builders (NAHB).

Home costs are expected to rise another $9,200, the group said. It estimated that about 7% of products used in new construction projects come from other countries — that amount can fluctuate depending on which products a home buyer wants and how much they are willing to spend.

Some prospective homebuyers told ABC News they are not worried about tariffs impacting their ability to buy a home, simply because they haven’t seen home prices shoot up as a result.

“Personally, no because I don’t have a whole lot of experience of what that is going to mean for me as a homeowner,” Deishali DeWitt, a 33-year-old first-time home buyer, said.

DeWitt, who has been looking for a year, told ABC News that prices were “ridiculous” before the tariffs.

“The past or two years ago, I remember looking…houses were about half the price that they are right now,” she said. “So that’s been part of why it’s taken me some time. Like, do I really want to pay for a house that’s $600k right now? That was worth $250k just two years ago?”

Windham — the Raleigh area realtor — said first-time home buyers care most about one thing: cost per month. That cost has been pushing homebuyers farther out from major cities, to more affordable areas with new development.

“They’re looking at monthly payment, and they have a set number in mind,” Windham said.

If buyers pull back amid economic uncertainty and there’s less demand for homes, residential construction could also slow down and potentially exacerbate the country’s housing shortage.

“When we start to see tariffs come into play, what then happens to an interrupted supply chain or is there an interrupted chain that causes it to take a couple weeks longer to get cabinets?” Yost said. “That can extend my build time. Then the client may not be in their home for a couple extra months. All those things have real human impact.”

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(NEW YORK) — Hedge fund honcho Bill Ackman has joined a growing list of President Donald Trump’s billionaire backers calling for the White House to slam the brakes on tariffs.

As the Trump administration’s reciprocal tariffs went into effect Wednesday, triggering retaliatory reactions from China and the European Union, Ackman took to social media, asking Trump to put a 90-day pause on tariffs, arguing the president can “accomplish his objectives without destroying small businesses in the short term.”

In the lengthy post on X, Ackman, founder of Pershing Square Capital Management, issued a dire warning of what could happen if the tariffs aren’t halted immediately.

“If the president doesn’t pause the effect of the tariffs soon, many small businesses will go bankrupt,” Ackman wrote. “Medium-sized businesses will be next.”

Ackman is joining other billionaires, including some like him who supported Trump’s campaign for reelection, in turning a cold shoulder to the escalating tariff war. Trump claims the tariffs are necessary for leveling the playing field for the United States importers, saying, “foreign trade and economic practices have created a national emergency.”

Other billionaire moguls — including investor and philanthropist Stanley Druckenmiller, Citdel owner Kenneth Griffin and even Tesla CEO Elon Musk, a senior adviser to the president — have spoken out against Trump’s tariffs after supporting the president’s re-election campaign.

Speaking at an event in Miami on Monday night, Griffin called Trump’s tariffs a “huge policy mistake,” according to The Wall Street Journal. In a rare social media post on Sunday, Druckenmiller wrote, “I do not support tariffs exceeding 10%.”

Musk has publicly blasted Trump’s senior trade adviser Peter Navarro, one of the architects of Trump’s tariff policy, calling him “truly a moron” and “dumber than a sack of bricks” after Navaro described him as a “car assembler.” In a live stream speech to Italy’s League Congress Conference in Florence, Italy, on Saturday, Musk expressed hope for the U.S. and Europe to create “a very close, stronger partnership” and reach a “zero-tariff” policy soon.

A 10% tariff on all U.S. trading partners went into effect on Saturday. Additional reciprocal tariffs against 60 countries that place duties on U.S. imports went into effect at 12:01 a.m. ET on Wednesday.

Some countries have retaliated by imposing tariffs on American goods. Trump increased the tariffs on China to 104% and threatened an additional 50% if China didn’t back down from imposing a 34% tariff on U.S. goods. China responded Wednesday by jacking up tariffs on U.S. products to 84%.

The European Union also voted Wednesday to impose a retaliatory 25% tariffs on certain U.S. goods.

Ackman spoke out against tariffs, saying he is “receiving an increasing number of emails and texts from small business people I do business or have invested in, expressing fear that they will not be able to pass on their increased costs to their customers and will suffer severely negative consequences.”

In his post Wednesday, Ackman shared an email from the founder of a cold brew coffee business he said he received before China’s announced retaliatory tariffs. The cold brew coffee founder said his cost for glass bottles sourced from China will go up 50%, while chai sourced from India will increase by 26% and coffee imported from Ethiopia, Peru and Canada will climb by 10%.

“Will my clients tolerate a near doubling of their contract costs overnight, or will they expect me to absorb the increases my vendors are already threatening?” the business owner wrote in the email to Ackman. “If clients resist price hikes and my employees demand higher wages to offset their rising cost of living, we end up in a lose-lose scenario — no spending and no jobs.”

Ackman ended his post by writing, “May cooler heads prevail.”

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(NEW YORK) –U.S. stocks seesawed on Wednesday, swinging between gains and losses amid fears of a global trade war as China and the European Union slapped retaliatory tariffs on U.S. goods.

The Dow Jones Industrial Average fell 60 points, or 0.7%, while the S&P 500 dropped 0.6%,

The tech-heavy Nasdaq jumped 0.2%.

Meanwhile, a selloff hit U.S. Treasury markets on Wednesday, sending bond yields higher and raising concern about a typical safe-haven asset during moments of instability for stocks.

President Donald Trump’s latest batch of levies on China increased the cumulative rate of tariffs on Chinese goods to 104% — a move met with retaliatory tariffs in Beijing that raised tariffs on U.S. goods to 84%.

European Union countries on Wednesday backed the European Commission’s proposal to push back on Trump’s tariffs on steel and aluminum with a set of countermeasures.

The latest U.S. tariffs came into force with key Asian markets already open. In Japan, the Nikkei index dropped more than 5% in response, while the broader TOPIX index slipped 4.6%. The Nikkei closed down 3.93% and the TOPIX down 3.4%.

Stocks in Taiwan fell more than 5.7%, Singapore’s STI index slipped 2.4%, South Korea’s KOSPI index lost 1.8%, Australia’s S&P/ASX 200 lost 1.8% and India’s NIFTY 50 dropped 0.4%.

In China, Hong Kong’s Hang Sen index slipped 0.4%. Shanghai’s SSE Shanghai Composite Index — which has fewer international investors and is buoyed by the state-owned investors known as the “National Team” — posted gains of 1.1% despite the new tariffs. Shenzhen’s SE Composite rose 2.2%.

In Europe, key indices dropped on opening.

The British FTSE 100 dropped by 2.2%, Germany’s Dax index dropped 2.3%, France’s CAC 40 fell by 2.4% and Spain’s Ibex index was down 2%. The pan-European STOXX index was down 2.6%. 

United States stocks closed lower on Tuesday, marking a major reversal from a rally that sent the S&P 500 and Nasdaq up more than 4% earlier in the day.

The Dow Jones Industrial Average closed down 320 points, or 0.8%, while the Nasdaq dropped 2.1%.

The S&P 500 fell 1.5%, putting the index on the brink of a bear market, a term that indicates a 20% drop from a previous peak.

The move lower on Tuesday resumed a selloff that stretches back to Trump’s tariff announcement last week. Since then, the S&P 500 and Nasdaq have each fallen more than 12%.

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(NEW YORK) –U.S. stocks were mixed at the open of trading on Wednesday, extending days-long turmoil in markets as tit-for-tat tariffs between the U.S. and China heightened the risk of a global trade war and worsened fears of a recession.

The Dow Jones Industrial Average opened down 315 points, or 0.8%, while the S&P 500 fell 0.4%.

The tech-heavy Nasdaq ticked up 0.03%.

Meanwhile, a selloff hit U.S. Treasury markets on Wednesday, sending bond yields higher and raising concern about a typical safe-haven asset during moments of instability for stocks.

President Donald Trump’s latest batch of levies on China increased the cumulative rate of tariffs on Chinese goods to 104% — a move met with retaliatory tariffs in Beijing that raised tariffs on U.S. goods to 84%.

The latest U.S. tariffs came into force with key Asian markets already open. In Japan, the Nikkei index dropped more than 5% in response, while the broader TOPIX index slipped 4.6%. The Nikkei closed down 3.93% and the TOPIX down 3.4%.

Stocks in Taiwan fell more than 5.7%, Singapore’s STI index slipped 2.4%, South Korea’s KOSPI index lost 1.8%, Australia’s S&P/ASX 200 lost 1.8% and India’s NIFTY 50 dropped 0.4%.

In China, Hong Kong’s Hang Sen index slipped 0.4%. Shanghai’s SSE Shanghai Composite Index — which has fewer international investors and is buoyed by the state-owned investors known as the “National Team” — posted gains of 1.1% despite the new tariffs. Shenzhen’s SE Composite rose 2.2%.

In Europe, key indices dropped on opening.

The British FTSE 100 dropped by 2.2%, Germany’s Dax index dropped 2.3%, France’s CAC 40 fell by 2.4% and Spain’s Ibex index was down 2%. The pan-European STOXX index was down 2.6%.

United States stocks closed lower on Tuesday, marking a major reversal from a rally that sent the S&P 500 and Nasdaq up more than 4% earlier in the day.

The Dow Jones Industrial Average closed down 320 points, or 0.8%, while the Nasdaq dropped 2.1%.

The S&P 500 fell 1.5%, putting the index on the brink of a bear market, a term that indicates a 20% drop from a previous peak.

The move lower on Tuesday resumed a selloff that stretches back to Trump’s tariff announcement last week. Since then, the S&P 500 and Nasdaq have each fallen more than 12%.

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(TAIWAN) — Asian stocks plunged during Wednesday’s trading session after President Donald Trump’s latest batch of sanctions on China came into force, helping wipe off Tuesday’s limited gains and compounding a turbulent week for the world’s key indexes.

Trump’s new measures increased the cumulative rate of tariffs on Chinese goods to 104% — a move met with more condemnation in Beijing, where officials warned that China is ready to fight an extended trade war if forced to do so.

The latest tariffs came into force with key Asian markets already open. In Japan, the Nikkei index dropped more than 5% in response, while the broader TOPIX index slipped 4.6%. The Nikkei closed down 3.93% and the TOPIX down 3.4%.

Stocks in Taiwan fell more than 5.7%, Singapore’s STI index slipped 2.4%, South Korea’s KOSPI index lost 1.8%, Australia’s S&P/ASX 200 lost 1.8% and India’s NIFTY 50 dropped 0.4%.

In China, Hong Kong’s Hang Sen index slipped 0.4%. Shanghai’s SSE Shanghai Composite Index — which has fewer international investors and is buoyed by the state-owned investors known as the “National Team” — posted gains of 1.1% despite the new tariffs. Shenzhen’s SE Composite rose 2.2%.

In Europe, key indices dropped on opening.

The British FTSE 100 dropped by 2.2%, Germany’s Dax index dropped 2.3%, France’s CAC 40 fell by 2.4% and Spain’s Ibex index was down 2%. The pan-European STOXX index was down 2.6%.

U.S. stock market futures indicated continued uncertainty, despite the White House touting possible deals with as many as 70 nations seeking to avoid the impact of Trump’s tariff campaign.

Dow Jones futures were up 0.01% as of Wednesday morning, with S&P 500 futures down 0.02% and Nasdaq futures up 0.26%.

United States stocks closed lower on Tuesday, marking a major reversal from a rally that sent the S&P 500 and Nasdaq up more than 4% earlier in the day.

The Dow Jones Industrial Average closed down 320 points, or 0.8%, while the Nasdaq dropped 2.1%.

The S&P 500 fell 1.5%, putting the index on the brink of a bear market, a term that indicates a 20% drop from a previous peak.

The move lower on Tuesday resumed a selloff that stretches back to Trump’s tariff announcement last week. Since then, the S&P 500 and Nasdaq have each fallen more than 12%.

ABC News’ Max Zahn contributed to this report.

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