Global markets slide after Trump unveils sweeping tariffs

Hi everyone. I’m Stephanie LI.Coming up on today’s programUS announces sweeping “reciprocal tariffs,” sparking strong responses from multiple countries;China’s semiconductor sector shows strong performance in 2024.Here’s what you need to know about China in the past 24 hours Amid widespread opposition, US President Donald Trump declared a "national emergency" and announced a sweeping "reciprocal" tariff policy on Wednesday, setting a baseline tariff of 10 percent on all imported goods, with higher tariffs on many countries.In remarks on tariffs in the Rose Garden at the White House on Wednesday, Trump displayed a comprehensive chart outlining the reciprocal tariffs he is imposing on various countries. The plan imposes steep tariff rates on many countries, including 49 percent on Cambodia, 46 percent on Vietnam, 34 percent on China, 24 percent tariff on Japan, 20 percent on the EU, with a total of more than 180 countries and regions facing tariffs.Markets around the world shuddered on Thursday. Futures on the S&P 500, which allow investors to trade the index outside normal trading hours, slumped over 3 percent. Shares of the US' seven biggest tech giants continued to plunge in after-hours today. Apple fell 7.1 percent, Nvidia 5.7 percent, Tesla 8 percent, Amazon 6 percent, Meta 4.8 percent, Alphabet 3.5 percent, and Microsoft 3.1 percent.Asian markets fell sharply, with benchmark indices dropping more than 3 percent in Japan, and nearly 2 percent in Hong Kong and South Korea. Gold hit a record high on Thursday, as nervous investors rushed towards safe-haven assets. Spot gold was up 0.4 percent at US$3,145.93 an ounce.Trading partners from the European Union to Canada and Mexico have vowed to respond with retaliatory tariffs and other countermeasures, even as some have sought to negotiate with the White House.In Australia, Prime Minister Anthony Albanese and his rival in a May election, Liberal Party leader Peter Dutton, said they would stand up for the country's national interests in the face of looming US tariffs that could hit Australian beef.Pascal Lamy, former Director General of the WTO has warned that the US administration's tariff policies are built on "completely mistaken" diagnosis of its domestic economy and will ultimately backfire—fueling domestic inflation and pushing interest rates higher instead.In response to US' announcement of "reciprocal tariffs" on all its trade partners, China's commerce ministry said on Thursday that China strongly opposes the move and will firmly take countermeasures to safeguard its own interests. "There is no winner in a trade war, and protectionism leads nowhere. China urges the US to immediately remove unilateral tariffs and resolve differences with trade partners through dialogue," a ministry spokesperson said.Following the imposition of 10 percent tariffs on Chinese imports on February 4, the US added another 10 percent tariff on China, effective March 4. In a strong response, China has announced a series of countermeasures, including imposing additional tariffs of 10-15 percent on US agricultural products starting from March 10.GBA expressDouyin Group recently purchased a land plot in Guangzhou’s Haizhu district at an auction for 1.2 billion yuan. The 5.5-hectare site plot will house the Douyin South China Innovation Base, aiming to boost digital marketing, entertainment, and AI.The world’s “big four” accounting firms all expect IPO fundraising in Hong Kong to hit at least HK$100 billion this year, and perhaps as much as HK$160 billion, as a pipeline of Chinese mainland tech firms and overseas companies awaiting listing approval fuel capital-market optimism. The international financial hub recorded 15 IPOs raising HK$18.2 billion in the first quarter.The Guangdong-Macao In-Depth Cooperation Zone in Hengqin implemented a new regional tax policy aimed at promoting offshore trade on Tuesday, which exempts enterprises registered in the cooperation zone from stamp duty on contracts for offshore resale transactions, further enhancing the zone's appeal for businesses engaged in international trade.The Guangzhou Baiyun International Airport has recorded a significant rise in cross-border travel, with over four million passenger movements in the first quarter of 2025—an increase of 24.5 percent year-on-year. This milestone was reached 20 days earlier than in 2024. Industry and company newsAs of Wednesday, 1,083 Chinese listed companies have announced their financial results for last year, among which 646 have reported year-on-year revenue growth, or about 60 percent of the total, according to data from information provider Wind. Meanwhile, 616 listed companies saw year-on-year profit growth. By industry, semiconductor, consumer electronics, and auto parts firms showed particularly strong performance amid booming demand from the country's rapid adoption of cloud computing and AI.China's wholesale sales of domestic new energy passenger vehicles likely soared 37 percent to 1.14 million units in March from a year earlier, the CPCA said yesterday. The figure for the first quarter is expected to have climbed 43 percent to 2.86 million units.Kweichow Moutai’s net profit widened 15 percent to 86.2 billion yuan and revenue rose 16 percent to 174.1 billion yuan last year from the year before, according to the Chinese liquor giant's 2024 earnings report. Kweichow Moutai will distribute 34.7 billion yuan in cash dividends.Asia-Pacific highlightsThe death toll of Myanmar’s 7.9-magnitude earthquake has risen to 2,886, with 4,639 injured, and 373 still missing, Xinhua reported yesterday, citing the Southeast Asian country’s State Administration Council. The second batch of emergency humanitarian aid supplies dispatched by the Chinese government arrived in Yangon on Thursday. Meanwhile, Hong Kong Chief Executive John Lee met with Myanmar Consul General Han Win Naing on Thursday morning to express condolences and announced a major aid package that includes over 20 metric tons of relief supplies for the earthquake-stricken nation.The first passenger flight from Lhasa, Xizang autonomous region in China, landed at the Pokhara International Airport in Nepal and received a water cannon salute on Monday. The airport, funded by Beijing, wasinaugurated on January 1, 2023. Pokhara, as Nepal's tourism capital, is the gateway to the world-famous Annapurna Circuit trekking route. Since the airport became operational, Pokhara no longer depend on Kathmandu for tourist inflow and has seen significant investments in the hospitality industry.GIC Private, Singapore’s sovereign wealth fund, has reduced its holdings in Zijin Mining Group, divesting about HKD1 billion worth of shares, amid a sustained rapid rise in gold and copper prices which has boosted the Chinese gold miner's stock price.