Trump's tariff regime takes effect, sending markets tumbling

(Sharecast News) - Donald Trump's sweeping tariff regime came into force on Wednesday, including a swingeing 104% on China, unnerving markets and pushing the world to the brink of an all-out trade war. Dozens of countries, including a number of America's traditional trading partners, have had so-called reciprocal tariffs imposed on them by Washington, the highest in decades.

China's record rate was announced after Beijing refused to rule out retaliatory levies on US products.

The tariff regime, first announced on 2 April, has caused carnage on global markets, sending both equities and oil tumbling.

Equity markets rallied yesterday following days of falls, but Asian markets slumped once again overnight as the tariffs took effect. Japan's Nikkei 225 was down more than 3%, although Chinese stocks saw smaller falls.

Benchmark Brent crude, meanwhile, had lost nearly 4% by 0700 BST, at $60.57 a barrel. WTI was also 4% lower, at $57.22.

Trump acknowledged the tariffs had been "somewhat explosive". But he insisted: "After years of being ripped off, it's America's turn to do the ripping." He also said countries remained keen to negotiate trade deals with the Washington.

But the regime has sparked fears that the US will see a spike in inflation and be pushed into recession, while the global economy slows sharply.