Donald Trump Tariffs Announcement Live Updates: India downplays impact, experts says new tariffs could hit GDP by nearly 1% – World News

Financial markets around the world are reeling Thursday following President Donald Trump’s latest and most severe set of tariffs, and the U.S. stock market is taking the worst of it so far.The S&P 500 was down 3.7% in afternoon trading, more than other major stock markets, and at its bottom in the morning was on track for its worst day since COVID struck in 2020. The Dow Jones Industrial Average was down 1,228 points, or 2.9%, as of 1:08 p.m. Eastern time, and the Nasdaq composite was 4.8% lower.

The average rate on a 30-year mortgage in the U.S. edged lower for the second week in a row following the tariff announcements. Investors had fled to the bond market amid a massive sell-off in the stock market early on Thursday. This in turn caused bond yields to drop. Mortgage rates loosely follow the yield on the 10 year US Treasury.

Apple faces a tough choice of either absorbing extra expenses or passing it on to customers. Most iPhones are still made in China which was just hit by a 54% tariff. Apple sells more than 220 million iPhones a year and its biggest markets include the United States, China and Europe.

The cheapest iPhone 16 model was launched in the US with a sticker price of $799. However analysts at Rosenblatt Securities suggest that the cost could rise by 43% (if Apple passes it on to consumers). This could raise the price of the same phone model to as much as $1,142.

A potentially sharp price hike could dampen demand for the smartphone and give South Korea’s Samsung Electronics an edge, as the Asian country faces lower tariffs than China.

The small cap Russell 2000 benchmark entered a bear market on Thursday — becoming the first major index to reach that marker following a monthlong market sell-off that was accelerated by the recent tariffs announcement. The benchmark is now down more than 20% from the its all-time high close in late November last year.

Stellantis NV, maker of Ram trucks and Jeeps, said on Thursday it was temporarily laying off 900 workers at five U.S. facilities after President Donald Trump’s tariffs were announced, and temporarily pausing production at an assembly plant in Mexico and in Canada. The U.S. plants affected are powertrain and stamping facilities. Stellantis’ Windsor Assembly, where the Chrysler Pacifica minivan and Dodge Charger Daytona are made, will be down for two weeks while Toluca Assembly, where the Jeep Compass and Jeep Wagoneer S are made, will be down the month of April, the company said.

(via Reuters)

World cocoa and coffee prices fell on Wednesday as investors fretted that President Donald Trump’s move to slap punishing tariffs on U.S. imports would damage chocolate and coffee demand in the world’s top consumer of the products. Sugar prices also fell, caught in the melee of tariffs as the U.S. is also one of the world’s top sugar importers.

Top robusta growers Vietnam and Indonesia were targeted with 46% and 32% tariffs, respectively, top arabica and sugar grower Brazil was hit with 10% tariffs for its goods, while top cocoa growers Ivory Coast and Ghana face 21% and 10% tariffs.

The US is also a major importer of processed cocoa products like butter and powder from the EU, Malaysia and Indonesia. Trump slapped 20% tariffs on EU imports and 24% on Malaysian goods, while the 32% tariffs on Indonesia of course apply to both robusta coffee and to cocoa products.

Swiss watch seller Sacha Davidoff was scrambling on Thursday to understand what new U.S. tariffs on Switzerland announced by President Donald Trump meant for the goods he was due to export from his shop in Geneva this week.

“I made a deal and now we’re stuck. We are supposed to ship the watch, but what do we do now? He (the client) won’t want to pay 31% more. It doesn’t feel real,” Davidoff said.

Shares in European luxury companies dropped on Thursday after Trump announced import tariffs, including 31% on goods from Switzerland and 20% from the European Union.

The vintage watches Davidoff sells are worth an average of 20,000 Swiss francs ($23,272) and could now be subject to another 6,000 Swiss francs in import tax.

(via Reuters)

Reuters quoted a German government spokesperson to indicate that Chancellor Olaf Scholz had spoken to Canadian PM Mark Carney on Thursday. The two leaders reportedly discussed the state of the global economy and the recently imposed US tariffs.

” President Trump is reversing the failed policies of the last 40 years that reward companies who ship American jobs overseas. Under this administration, you will be rewarded for building your business right here in America,” he wrote on X.

The Director-General of the World Trade Organization said tariffs announced on April 2 by the United States along with those introduced at the start of 2025 could lead to an overall contraction of around 1% in global merchandise trade volumes in 2025.

Ngozi Okonjo-Iweala said on Thursday that the organization is closely monitoring and analysing the measures announced by the United States.

Canadian Prime Minister Mark Carney said the tariffs announced on Wednesday would “rupture the global economy and adversely affect global economic growth”. He however welcomed the exemption of some Canadian goods from Trump’s tariffs under the free trade agreements between the two countries. Carney also noted that previously announced US levies on Canadian cars, steel and aluminum remain in place — calling them “unjustified, unwarranted” and “misguided”.

Canada will impose a 25% tariff on all vehicles imported from the United States that are not compliant with the U.S.-Mexico-Canada trade deal, Prime Minister Mark Carney told a press conference on Thursday.

Carney also said the new tariffs would not apply to auto parts and would not affect vehicle content from Mexico.

The yield on the benchmark US 10-year Treasury note fell 15.3 basis points to 4.042% after falling to a 4.004%, its lowest since October 16. The yield on the note was on track for its biggest daily drop since August 2.

Yields have moved lower over the past few months and equities have struggled as recent data have shown a notable weakening in consumer sentiment and growing inflation expectations as investors braced for the tariff announcements.

Concerns that the tariffs could cause price pressures to increase while stunting economic growth, prompting a stagflation environment, have also grown.

Oil prices fell on Thursday as the decision by the OPEC+ group to speed up its unwinding of oil output cuts in May compounded already heavy losses following U.S. President Donald Trump’s announcement of sweeping new tariffs.

Brent futures were down $5.33, or 7.11%, at $69.62 a barrel by 1504 GMT. U.S. West Texas Intermediate crude futures were down $5.59, or 7.80%, at $66.12.

Brent was on course for its worst percentage drop since August 1, 2022, and WTI its worst since July 11, 2022.

At a ministers’ meeting on Thursday, OPEC+ countries agreed to advance their plan for oil output hikes, now aiming to return 411,000 barrels per day to the market in May, up from 135,000 bpd initially planned.

US Commerce Secretary Howard Lutnick told CNN during an interview on Thursday that there was ‘no chance’ that Donald Trump would back off tariffs.

Citibank economists predict that India’s central bank will cut rates three more times this year by 75 basis points as the economy’s growth outlook worsens due to import tariffs imposed by the United States. The forecast means that it expects a total of 100 basis points in rate cuts for the year — in line with those predicted by JPMorgan and Nomura.

The Reserve Bank of India cut the repo rate by 25 basis points to 6.25% in February, its first in nearly five years. The 27% tariff imposed by the US on Indian imports could impact GDP growth in 2025-26 by close to 40 basis points, Samiran Chakraborty, Citi’s chief India economist, said in a report.

“If these tariffs lead to a material global growth slowdown, then potentially that could impart a larger negative effect on India’s exports. Also, we are worried that persistent uncertainty around continuously negotiated tariffs could depress private investment intentions and affect GDP growth too,” Reuters quoted Chakraborty as saying.

Two senior lawmakers on the Senate Finance Committee are introducing legislation seeking to rein in President Donald Trump’s ability to impose tariffs and would require congressional approval for new levies within 60 days.

Republican Senator Chuck Grassley and Democrat Maria Cantwell — who both serve on the Finance Committee — would require Trump to notify Congress on new tariffs with an explanation of the rationale including an analysis of the potential impact on American businesses and consumers.

Within 60 days, Congress would need to pass a joint resolution of approval on the new tariff, otherwise all new tariffs on imports expire.

The bill is modeled on the War Powers Resolution of 1973, and would reestablish limits on the president’s ability to impose unilateral tariffs without approval from Congress.

(via Reuters)

The S&P 500 was down 4.3% in morning trading, more than other major stock markets, and it’s on track for its worst day since COVID shattered the global economy five years ago.

Brazilian President Luiz Inacio Lula da Silva said his government would take “all appropriate measures” to defend Brazilian firms and workers from the impact of tariffs.

“We defend multilateralism and free trade,” he said at an event in Brasilia, adding that any measure would be based on a bill passed by Congress on Wednesday outlining the framework for trade reciprocity.

Shares of US banks tumbled to multi-month lows on Thursday, after President Donald Trump’s sweeping tariffs plan sparked fears of weaker capital markets and a slowdown in consumer spending.

Citigroup fell 11%, while Bank of America, Morgan Stanley, Goldman Sachs and Wells Fargo slipped 9% each. JPMorgan Chase, the biggest U.S. bank, dropped 7%.

Apple has lost nearly $300 billion in value on Thursday amid upheaval in the stock market. Shares dropped 9% — with market capitalisation dropping from $3.367 trillion last night to around 3.07 trillion.The company is likely to face significant pressure from the hefty tariffs imposed on imports from China, Taiwan, India and Vietnam. Much of its manufacturing and supply chain is based in the Asia-Pacific region.

“I wouldn’t want to be the last country that tries to negotiate a trade deal with Donald Trump . The first to negotiate will win – the last will absolutely lose. I have seen this movie my entire life…” he wrote on X.

The Nasdaq 100 is now 1.3% away from a ‘circuit breaker’ trigger as tariff announcements cause widespread unrest. This would pause trading for 15 minutes if the drop took place before 3:25 pm eastern time.

French President Emmanuel Macron called for called for collective solidarity after US President Donald Trump announced 20% reciprocal tariffs against the European Union. He also insisted that it made little sense for firms to invest in the other country while the US hit out at Europe.

“What would the message of having big European players that invest billions in the American economy at the same time they are hitting us. We must have collective solidarity,” a Bloomberg report quoted him as saying.

According to a Reuters report, Macron also dubbed the tariffs “brutal and unfounded” and a shock for international trade. He also called for Europe to respond “industry by industry” during a meeting with French industry representatives. Macron added that the response to the reciprocal tariffs would be “more massive” than its earlier retaliation to US steel and aluminum tariffs.

French President Emmanuel Macron has urged companies to pause investments in the US after President Donald Trump announced tariffs on the European Union and other regions.

“The operation is over! The patient lived, and is healing. The prognosis is that the patient will be far stronger, bigger, better, and more resilient than ever before. Make America great again!!!” he wrote on Truth Social.

The S&P 500 dropped 3.4% while the Dow Jones Industrial Average tumbled1200 points. The Nasdaq Composite slid 3.8%

According to a Reuters update quoting trade ministry sources, the country is mulling the possibility of ‘providing help’ to affected export sectors.

Donald Trump’s latest tariff announcement could impact Israel’s exports of machinery and medical equipment, an Israeli finance ministry official told Reuters on Thursday. As part of a sweeping new tariff policy, unspecified Israeli goods exports to the United States face a 17% tariff. The U.S. is Israel’s closest ally and largest single trading partner.

US Commerce Secretary Howard Lutnick told CNBC that the newly announced tariffs would push countries to reexamine their policies and provide greater market access for American products.

“This is the reordering of fair trade. It’s about those non-tariff trade barriers. That’s what we are addressing,” he said on “Squawk Box.