‘Liberation Day’ tariffs highlights: Countries, experts and markets rattled by fresh duties, react sharply

US stock futures experienced a significant drop on Thursday following President Trump’s announcement of a 10 per cent tariff on all US trading partners. This decision triggered widespread uncertainty in the market and shook the global trade landscape.

S&P 500 futures fell by 3.1 per cent, while Dow Jones Industrial Average futures decreased by 2.5 per cent, resulting in a loss of over 1,000 points. Nasdaq 100 futures, which are heavily weighted with technology stocks, saw the largest decline, plummeting by 3.5 per cent.

Germany’s outgoing Economy Minister, Robert Habeck, launched a fierce critique on US President Donald Trump’s new global tariff regime on Thursday, urging Europe and like-minded partners to establish new trade alliances in response, Politico reported.

“The logical consequence is: then he needs to feel the pressure,” Habeck said in Berlin, adding that Trump “only folds when he’s under pressure.” He referred to the new tariffs — a uniform 10 percent levy on all US imports, along with significantly higher rates for numerous countries — as “the most disruptive tariff increase in 90 years.”

Gold prices on Thursday stabilised after surging to yet another all-time high after US President Donald Trump’s announcement of sweeping import tariffs drove investors to the safe-haven asset. Spot gold was steady at $3,130.21 at 0834 GMT amid some profit-taking, after hitting a record peak of $3,167.57 earlier in the session.

Gold has continued to build on last year’s rally, with prices rising 19% in 2025 as a combination of factors – including economic and geopolitical uncertainties, robust central bank purchases and increased flows into gold-backed exchange-traded funds – has supported the metal.

The Indian equity market, which had initially shown signs of recovery on Thursday, ended with modest losses after the announcement of the 27 per cent tariff on US imports were announced early this morning.

The 30-share BSE Sensex closed at 76,295.36, down 322.08 points or 0.42 per cent. The broader Nifty 50 index ended the day with loss of 82.25 points or 0.35 per cent at 23,250.10 points.

“The IT and auto sectors experienced selling pressure due to US slowdown concerns and disruptions in the supply chain. Conversely, pharmaceutical stocks benefited from being exempt from the tariffs. Nonetheless, robust domestic macroeconomic data and lower crude oil prices aided the broader market performance. Although the tariff presents short-term challenges, India’s economic resilience and bilateral trade agreement may help mitigate the overall impact,” said Vinod Nair of Geojit Financial.

A Senate resolution, passed 51-48, has rebuked Trump’s tariffs and presentes the possibility of ending the presidential emergency declaration on fentanyl that underpins tariffs on Canada.

However, the legislation has little chance of passing the Republican-controlled House. Still, given that it passed in the Senate, it shows the limits of Republican support for Trump’s vision of remaking the US economy by restricting free trade.

As part of his big ‘Liberation Day’ announcement, US President Donald Trump has slapped a 10 per cent tariff on a group of barren, uninhabited islands that are an external territory of Australia. While the Heard and McDonald Islands have no human habitation, they are home to marine birds and mammals, including seals and penguins.

Trump’s imposition of tariffs on these territories has spurred a memefest online.

The penguins are going to pay for what they did to our country. Believe me. 🥴 pic.twitter.com/8142XsMGN8

— Hoodlum 🇺🇸 (@NotHoodlum) April 3, 2025

I know everyone is laughing about the tariffs on the uninhabited island where the penguins are but I wouldn’t mess with them guys, did you even watch “Madagascar”???? They’ll destroy us pic.twitter.com/v3ktrxiRs3

— Brunette Bohemian (@Jane_Doe82) April 3, 2025

BREAKING: Trump’s tariffs on penguins have united flightless birds worldwide. pic.twitter.com/ZoKNAH5suT

— 𝕐𝕠𝕦 𝕔𝕒𝕟 𝕔𝕒𝕝𝕝 𝕞𝕖 𝔸l 🌐 𝕏 (@ShitzN_Giggles) April 3, 2025

Indian Commerce Ministry said it is in talks with the officials of the United States for a “mutually beneficial, multi-sectoral bilateral trade agreement”, hours after President Donald Trump announced a 26 per cent reciprocal tariff on the country.

In an official statement, the Ministry said, “The ongoing talks are focused on enabling both nations to grow trade, investments and technology transfers. We remain in touch with the Trump Administration on these issues and expect to take them forward in the coming days.”

Outgoing German Chancellor Olaf Scholz on Thursday said that the new US tariffs were “fundamentally wrong” but that Europe was open to further talks to end a worsening trade war.

“This is an attack on a trade order that has created prosperity all over the globe, a trade order that is essentially the result of American efforts,” Scholz told a press conference.

A White House annex listing future reciprocal tariff rates differed for at least 14 economies from what was on the charts presented when President Donald Trump announced his “Liberation Day” tariffs in the Rose Garden. In each case, they were higher by exactly one percentage point, Bloomberg reported.

This was the case for India as well. Trump’s card had shown 26 per cent, while in the annex document, India’s rate was listed at 27 per cent.

This is important because, under the executive order implementing Trump’s reciprocal tariff policy, all US trading partners start at a global 10 per cent tariff from April 5. Four days later, those listed in the annex — and only those in the annex — would have their rates elevated to those set out in that document.

Leaders of the Bangladeshi textile industry expressed on Thursday that US tariffs have dealt a “massive blow” to the world’s second-largest garment manufacturer, which accounts for approximately 80 percent of the country’s exports.

“Buyers will turn to other cost-competitive markets, and this will severely impact our industry,” said Rakibul Alam Chowdhury, chairman of RDM Group, a major manufacturer with an estimated turnover of $25 million. “We will lose buyers.”

President Trump has imposed a 26 per cent reciprocal tariff on India. It is likely to hit the country’s exports by 3 to 3.5 per cent and GDP growth in FY26 by 40-60 bps.

Dr. Manoranjan Sharma, Chief Economist at Infomerics Valuation and Rating, said that “Likely bilateral pacts between India and the UK/ EU, and securing trade agreements with ASEAN and Gulf countries will help diversify and expand India’s export markets and provide a level playing field for competitors, who may have already entered FTAs with partner countries. Such pacts will enhance trade and investment by reducing tariff and non-tariff barriers, improving market access, and helping expand opportunities in technology, healthcare, and education.

Dr Sharma also mentioned that “Domestic firms and industries must retool their inputs, outputs, and finished products to slash costs and achieve operational efficiency and an uninterrupted supply chain for growth, structural transformation, and resilience.”

Professor Shamika Ravi, an expert who is on Prime Minister Narendra Modi’s Economic Advisory Council, on Thursday critiques President Donald Trump’s tariffs, calling the way his administration has fone about deciding tariffs “non-serious”. Responding to an analysis of how overly-simplified Washington’s calculation for deciding the so-called reciprocal tariffs was, Ravi said, “Given the non-seriousness of this entire exercise, it is clear now that the US has pulled all its trading partners into a giant ‘Chicken’s Game’.”

By chicken’s game, the expert likely meant that US was trying to threaten its trading partners with tariffs to bring them to the negotiation table. From thereon, it would be a game of who gets scared first and offers a favourable deal– the US or its trading partner.

Given the non-seriousness of this entire exercise, it is clear now that the US has pulled all its trading partners into a giant "Chicken's Game". https://t.co/mMaLOD10Om

— Prof. Shamika Ravi (@ShamikaRavi) April 3, 2025

Beijing on Thursday (April 3) said that it was “maintaining communication” with Trump administration over economic and trade issues after he announced sweeping tariffs on the Asian giant.

“The trade and economic departments of China and the United States have been maintaining communication,” commerce ministry spokesman He Yadong said.

China had previously vowed countermeasures in response to the tariffs, sparking fears of yet another trade war between two of the largest economies in the world.

Hong Kong’s Hang Seng index was down 1.67 per cent or 388.57 point at 22,813.56 around 3:30 pm HKT (1 pm IST). Heft tariffs on China, threats of ‘countermeasures’ from Beijing that have spurred fears of a trade war, and overall dampened investor sentiment were likely factors behind the downturn.

In response to the imposition of 26 per cent so-called reciprocal tariffs on India by US, a senior Indian official confirmed that the Ministry of Commerce is currently assessing the impact of the proposed tariff, with the implications under close review.

“It is a mixed bag and not a setback for India,” Times of India quoted the official as saying, adding that discussions with the US to finalise a first-phase bilateral trade agreement are ongoing, with hopes of conclusion by September or October.

READ MORE: ‘Not a setback’: India calls Trump’s new tariffs ‘a mixed bag’

With global stocks falling, investors are turning to gold to protect their money.

Gold hit a record $3,167.84 per ounce on Thursday before settling at $3,148. The metal, a popular choice during market uncertainty, has risen nearly 19 per cent this year amid concerns over Trump’s tariffs.

Trump’s tariff list includes a 10 per cent tax on the Heard and McDonald Islands, despite having no permanent residents.

These volcanic islands, located between Madagascar and Antarctica, are home to elephant seals, penguins, and visiting researchers.

Indian exporters and analysts see Trump’s new tariffs as both a challenge and an opportunity, AP reported.

India faces a 26 per cent tariff, lower than China (34 per cent), Vietnam (46 per cent), Bangladesh (37 per cent), and Thailand (36 per cent). While the tariffs may hurt industries and jobs, experts say India could benefit as businesses shift from higher-taxed countries.

“These tariffs pose challenges, but India is in a better position than its Asian peers,” said S.C. Ralhan, head of the Federation of Indian Export Organisations.

Ajay Srivastava, a trade expert, said the tariffs might push India to gain from changes in global supply chains.

Taiwan called US President Donald Trump’s tariffs “highly unreasonable” and said it would begin serious talks with Washington.

Taipei had tried to avoid the tariffs by promising more US investments, energy purchases, and higher defense spending.

US President Donald Trump announced new tariffs on imports worldwide on Wednesday.

Here’s how major economies are responding:

China: Beijing strongly opposes the new tariffs and vows countermeasures. The Commerce Ministry says they violate trade rules and harm global economic growth.

European Union: EU chief Ursula von der Leyen calls the tariffs a “major blow” to the world economy. The EU is preparing countermeasures but remains open to negotiations.

Germany: The automotive industry warns the tariffs will harm all sides, urging the EU to respond firmly but wisely. The chemical sector advises caution to avoid escalation.

Japan: Trade Minister Yoji Muto calls the 24 per cent tariffs on Japanese exports “extremely regrettable” and urges the US to reconsider. Officials warn they may violate trade agreements.

India: Export organizations say the tariffs will hurt demand but note that China and Vietnam are hit harder, possibly opening market opportunities for India.

UK: The government remains calm and committed to a US trade deal but warns it will take action if necessary.

France: President Macron plans to meet representatives from affected industries.

Italy: Prime Minister Giorgia Meloni criticizes the tariffs, warning they will weaken the West and urging a negotiated solution.

Canada: Prime Minister Mark Carney says Canada will fight back with countermeasures to protect workers.

French President Emmanuel Macron will meet on Thursday with representatives of industries affected by US tariffs, his office said.

The meeting, set for 1400 GMT, comes after US President Donald Trump announced a 20 per cent tariff on EU goods on Wednesday.

French President Emmanuel Macron. File image/Reuters

Japan slammed US President Donald Trump’s new tariffs on Thursday, calling them “extremely regrettable” and possibly against WTO rules and their trade deal.

“I have conveyed that the unilateral tariff measures taken by the United States are extremely regrettable, and I have again strongly urged (Washington) not to apply them to Japan,” Yoji Muto, trade and industry minister, told reporters.

He said he spoke to US Commerce Secretary Howard Lutnick before Trump’s announcement of a new 10-percent baseline tariff and extra levies on selected countries — including close strategic ally Japan.

The Trump import tariffs on imported cars and automobile kicked-in Thursday, raising trade tensions and concerns over rising consumer prices.

A 25 per cent tariff now applies to foreign-made cars and light trucks from 12:01 AM (0401 GMT), with auto parts facing tariffs by May 3, according to a Federal Register notice.

US President Donald Trump announced major new tariffs, calling it a “declaration of economic independence.”

Defending his policy, Trump said the US had been exploited for decades by both allies and rivals. He even claimed that trade abuses by friendly nations were sometimes even worse.

The EU is planning more measures to protect its interests, European Commission president Ursula von der Leyen said after Donald Trump announced a 20 per cent tariff on European goods. She urged the US to shift from confrontation to negotiation.

“President Trump’s decision to impose tariffs worldwide, including on the EU, is a major setback for the global economy. I deeply regret this move,” the European Commission president said on Thursday from Samarkand, Uzbekistan, where she is attending the first EU-Central Asia summit.

US President Donald Trump shocked the world on Wednesday by announcing broad new tariffs. He said these tariffs aim to tackle America’s soaring trade deficit.

In his speech, Trump introduced a 10% tariff on all imported goods. Additionally, he imposed higher tariffs on 60 countries, including India, which faces a 26% levy under “discounted tariffs.”

New Zealand’s Foreign Minister Winston Peters said the US tariffs on New Zealand exports were a reason for “celebration” since other countries face even higher rates, RNZ reported.

New Zealand is among the nations subject to a 10 per cent baseline tariff, which takes effect on Saturday.

“I’m delighted today that that is the outcome,” said Peters. “Many of our exporters need to know that they’ve got a 15 percent-plus advantage over their competitors in the United States, and we’ll turn this around real fast if they take it positively.”

South America

Brazil – 10 per cent, Argentina – 10 per cent, Chile – 10 per cent, Colombia – 10 per cent, Ecuador – 10 per cent, Peru – 10 per cent, Venezuela – 15 per cent, Bolivia – 10 per cent, Uruguay – 10 per cent, Guyana – 38 per cent

Europe

Western Europe

European Union – 20 per cent, Switzerland – 31 per cent, United Kingdom – 10 per cent, Norway – 15 per cent, Iceland – 10 per cent

Eastern Europe & Balkans

Ukraine – 10 per cent, Serbia – 37 per cent, Bosnia and Herzegovina – 35 per cent, North Macedonia – 33 per cent

Asia

East Asia

China – 34 per cent, Japan – 24 per cent, South Korea – 25 per cent, Taiwan – 32 per cent

South Asia

India – 26 per cent, Pakistan – 29 per cent, Bangladesh – 37 per cent, Sri Lanka – 44 per cent

Southeast Asia

Vietnam – 46 per cent, Thailand – 36 per cent, Indonesia – 32 per cent, Malaysia – 24 per cent, Brunei – 24 per cent, Philippines – 17 per cent, Cambodia – 49 per cent, Laos – 48 per cent, Myanmar (Burma) – 44 per cent

Middle East

Israel – 17 per cent, Turkey – 10 per cent, Jordan – 20 per cent

Gulf Region

United Arab Emirates – 10 per cent, Qatar – 10 per cent, Saudi Arabia – 10 per cent, Oman – 10 per cent

Africa

North Africa

Egypt – 10 per cent, Tunisia – 28 per cent, Algeria – 30 per cent, Morocco – 10 per cent

West Africa

Nigeria – 14 per cent, Côte d’Ivoire – 21 per cent, Ghana – 10 per cent

Southern & East Africa

South Africa – 30 per cent, Botswana – 37 per cent, Namibia – 21 per cent, Madagascar – 47 per cent, Lesotho – 50 per cent, Mauritius – 40 per cent, Ethiopia – 10 per cent

Oceania

Australia – 10 per cent, New Zealand – 10 per cent, Fiji – 32 per cent

Central America & the Caribbean

Costa Rica – 10 per cent, Panama – 10 per cent, Honduras – 10 per cent, Guatemala – 10 per cent, El Salvador – 10 per cent, Dominican Republic – 10 per cent, Trinidad and Tobago – 10 per cent, Haiti – 10 per cent, Bahamas – 10 per cent, Nicaragua – 18 per cent

China said on Thursday that it ‘firmly opposes’ the new US tariffs on its exports and vowed to take action to protect its interests, news agency AFP reported.

US tariffs “do not comply with international trade rules and seriously harm the legitimate rights and interests of the relevant parties”, the Commerce Ministry in Beijing said in a statement.

A ten per cent tariff will apply globally from April 5, with higher rates for some nations from April 9. China faces the highest at 54 per cent, including an existing levy.

Countries worst hit

The European Union (20 per cent), India (26 per cent), South Korea (25 per cent), and Japan (24 per cent) will see steep increases.

Exemptions

Products like copper, pharmaceuticals, semiconductors, gold, and energy are excluded. Canada and Mexico remain exempt but still face earlier 25 per cent duties. Cuba, Belarus, North Korea, and Russia are excluded as they are already facing high sanctions from the US.

Auto, steel, and aluminium tariffs

A 25 per cent tariff on imported autos starts Thursday. Meanwhile steel and aluminium tariffs will expand to canned beer and aluminium cans from Friday.

The German Automotive Industry Association (VDA) criticised the new US tariffs  imposed by US President Donald Trump, warning they will “only create losers.”

“The EU is now called upon to act together and with necessary force, while continuing to signal its willingness to negotiate,” the VDA said in a statement.

It urged the EU to respond strongly while remaining open to negotiations.

The US is a key market for German automakers. It is being speculated by the experts that the tariffs could lead to higher inflation and fewer product choices for American consumers.

Hong Kong’s stock market opened sharply lower on Thursday after Donald Trump announced major tariffs, including a 34 per cent tax on Chinese imports.

Hang Seng Index: Fell 2.43 per cent (-564.32 points) to 22,638.21.

Shanghai Composite Index: Dropped 0.91 per cent (-30.52 points) to 3,319.61.

Markets across the globe remain volatile as investors react to US President Donald Trump’s sweeping tariff increases.

Asian markets

Tokyo’s Nikkei 225: Initially fell 3.4 per cent, later recovering slightly to -2.9 per cent (34,699.52).

South Korea’s Kospi: Dropped 1.9 per cent to 2,459.30 after Trump announced a 25 per cent tariff on South Korean imports.

Australia’s market tumbles

Australia’s S&P/ASX 200: Declined 1.8 per cent to 7,793.10.

US Stock Futures

S&P 500 Futures: Down 3 per cent.

Dow Jones Futures: Fell 2 per cent, signaling potential losses when US markets reopen.

Other financial market reactions

10-Year US Treasury Yield: Fell to 4.11 per cent in the morning but rebounded to 4.18 per cent.

Crude oil prices

US Benchmark Crude: Dropped $2.08 to $69.63 per barrel.

Brent Crude: Fell $2.06 to $72.89 per barrel.

Currency market

US Dollar weakened to 148.07 yen from 149.28 yen.

Euro strengthened to $1.0897 from $1.0855.

South Korea’s acting leader Prime Minister Han Duck-soo urged quick emergency measures to help the auto industry and other businesses hit by Trump’s new tariffs, calling it a looming “global tariff war,” news agency AP reported.

At an emergency meeting, Prime Minister said to officials to work with business groups to assess the impact and negotiate with Washington to “minimize damage” to South Korea’s economy, the trade ministry said.

He held the meeting after Trump announced a 25 per cent tariff on South Korean imports.

Han is leading the country while President Yoon Suk Yeol remains impeached over his December martial law decision.

Acting South Korean President and Prime Minister Han Duck-soo. Reuters

Tokyo’s Nikkei index dropped over 3  per cent at the open on Thursday after US President Donald Trump announced major global trade tariffs. The Nikkei 225 fell 3.42 per cent (1,222.77 points) to 34,503.10, while the broader Topix index dropped 3.32 per cent (87.93 points) to 2,562.36.

A man walks past a screen displaying Japan’s Nikkei share average outside a brokerage in Tokyo, Japan. Reuters

Australian markets saw a sharp fell Thursday after US President Donald Trump announced a 10 per cent tariff on the country’s exports.

The ASX 200 dropped 142 points (1.79 per cent), with tech stocks, banks, and property sectors hit the hardest.

Andrew McKellar, CEO of the Australian Chamber of Commerce, said Australia fared better than some of America’s other major trading partners but called the tariffs an “unfriendly act.” He added that businesses would work with the government to oppose them.

Brazil Congress approved a law on Wednesday allowing the government to respond to trade restrictions. This came after US President Donald Trump announced a 10 per cent tariff on Brazilian exports.

The “Economic Reciprocity Law” was unanimously approved by the House of Representatives after the Senate passed it on Tuesday.