Economy

China’s Finance Ministry on Friday said it will impose a 34% tariff on all goods imported from the U.S. starting on April 10.
The ministry criticized Washington’s decision to impose 34% of additional reciprocal levies on China — bringing total U.S. tariffs against the country to 54% — as “inconsistent with international trade rules.”
U.S. stock futures and European markets fell sharply on news of the reciprocal tariffs.

China’s Finance Ministry on Friday said it will impose a 34% tariff on all goods imported from the U.S. starting on April 10, following duties imposed by U.S. President Donald Trump’s administration earlier this week.
“China urges the United States to immediately cancel its unilateral tariff measures and resolve trade differences through consultation in an equal, respectful and mutually beneficial manner,” the ministry said, according to a Google translation.

It further criticized Washington’s decision to impose 34% of additional reciprocal levies on China — bringing total U.S. tariffs against the country to 54% — as “inconsistent with international trade rules” and “seriously” undermining Chinese interests, as well as endangering “global economic development and the stability of the production and supply chain,” according to a Google-translated report from Chinese state news outlet Xinhua.
Separately, China also added 11 U.S. firms to the “unreliable entities list” that the Beijing administration says have violated market rules or contractual commitments. China’s Ministry of Commerce also added 16 U.S. entities to its export control list and said it would implement export controls on seven types of rare earth-related items, including samarium, gadolinium and terbium.
CNBC has reached out to the White House for comment.

Beijing, which also entertained a tenuous trade relationship with Washington under Trump’s first term, had warned that it would take “resolute counter-measures” to safeguard its own interests after the White House disclosed its latest sweeping tariffs on Wednesday.
Other U.S. trading partners had held off from announcing retaliatory tariffs amid hopes of further negotiations, with the European Union nevertheless voicing a readiness to respond.

The mutual U.S.-China levies are set to impact a trade relationship worth $582.4 billion in goods in 2024, according to the Office of the U.S. Trade Representative.
Analysts expect the U.S.’ protectionist trade policies to steer China toward other trading partners and see it implement further stimulus measures in an effort to galvanize the economy. China has been battling a property crisis and weak consumer and business sentiment since the end of the Covid-19 pandemic.
China’s retaliatory tariffs announced Friday exacerbated declines in global markets which had already been thrust into turmoil by fears of inflationary, recessionary and global economic growth risks following the White House’s tariffs.

El-Erian says U.S. recession risks are now ‘uncomfortably high’ More

Nonfarm payrolls in March increased 228,000 for the month, up from the revised 117,000 in February and better than the Dow Jones estimate for 140,000.
Health care was the leading growth area, consistent with prior months. The industry added 54,000 jobs, almost exactly in line with its 12-month average.
Average hourly earnings increased 0.3% on the month, in line with the forecast, while the annual rate of 3.8%, the lowest level since July 2024.

Job growth was stronger than expected in March, providing at least temporary reassurance that the labor market is stable, the Labor Department reported Friday.
Nonfarm payrolls increased 228,000 for the month, up from the revised 117,000 in February and better than the Dow Jones estimate for 140,000, according to the Bureau of Labor Statistics.

However, the unemployment rate moved up to 4.2%, higher than the 4.1% forecast as the labor force participation rate also increased.
Though the headline number beat estimates, the report comes against a highly uncertain backdrop after President Donald Trump’s tariff announcement this week that has intensified fears of a global trade war that could damage economic growth.
Stocks reacted little to the report, with futures tied to the Dow Jones Industrial Average off their lows but still down by more than 900 points while Treasury yields held sharply negative.
“Today’s better than expected jobs report will help ease fears of an immediate softening in the US labor market,” said Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management. “However, this number has become a side dish with the market just focusing on the entrée: tariffs.”
Trump announced a flat duty of 10% against all trading partners along with a wide menu of so-called reciprocal tariffs that already have provoked retaliation from China and others. Wall Street has been aggressively in sell-off mode for the past two days, with stocks tumbling and investors flocking to the safety of fixed income.

Previous indicators showed the labor market holding up, but the tariff moves raise the possibility that companies will hold back on hiring as they assess just what the new trade landscape will look like.
The March numbers, though, pointed to a still-strong labor market, though the January and February counts saw substantial downward revisions. In addition to the cut of 34,000 from the initial count for February, January’s growth is now at just 111,000, down 14,000 from the previous estimate.
Average hourly earnings increased 0.3% on the month, in line with the forecast, while the annual rate of 3.8% was 0.1 percentage point below the estimate and the lowest level since July 2024. The average work week was unchanged at 34.2 hours.
For March, health care was the leading growth area, consistent with prior months. The industry added 54,000 jobs, almost exactly in line with its 12-month average. Other growth areas included social assistance and retail, which both added 24,000, while transportation and warehousing showed a 23,000 increase.
Federal government positions declined by just 4,000, despite the Elon Musk-led efforts, though the Department of Government Efficiency, to pare the federal workforce. However, the BLS noted that workers on severance or paid leave are counted as employed. A report Thursday from consultancy firm Challenger, Gray & Christmas indicated that DOGE-related layoffs have totaled more than 275,000 so far.
“While Friday’s jobs report showed that the economy is still adding jobs even with the tariff uncertainty and Federal job cuts, the data is backward looking and doesn’t say anything about how employers might fare over the coming months,” said Glen Smith, chief investment officer at GDS Wealth Management.
A broader unemployment indicator that includes those not looking for work as well as workers holding part-time jobs for economic reasons — the underemployed — edged lower to 7.9%.
The survey of households, which is used to determine the unemployment rate, was closely in line with the establishment payroll count, as it showed a gain of 201,000 workers. Moreover, full-time workers increased by 459,000, while part-timers fell by 44,000.
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Unlock the White House Watch newsletter for freeYour guide to what the 2024 US election means for Washington and the worldSir Keir Starmer will discuss the “shifting” global economic landscape precipitated by Donald Trump’s trade war with fellow world leaders over the coming days, and press the need to strengthen partnerships in response.The UK prime minister will hold a flurry of bilateral calls with British allies across multiple regions, according to officials. On Friday, Downing Street rebuffed the US president’s suggestion that Starmer was “very happy” that Washington has slapped a 10 per cent levy on British exports, reiterating London’s “disappointment” over the move. “We accept that the tariffs imposed on the UK put us in a relatively more favourable position than other countries, but of course, the impact on the UK will be real,” Number 10 said. Trump’s tariff schedule is ushering in a “new era” for world trade, which will have “an economic impact . . . both here and globally”. Starmer’s spokesperson added: “The global economic landscape is shifting. It means we have a responsibility to work even more closely with other countries to maintain stability and strengthen our partnerships abroad.”The flurry of diplomatic activity this weekend is expected to involve Starmer, who will be at Chequers, calling leaders from Europe and other regions.The US hit the UK with the lowest baseline tariff, along with many other countries, half the 20 per cent rate applied to the EU.Trump told reporters on Air Force One he thought the UK prime minister was “very happy about how we treated them with tariffs”. British Treasury minister James Murray said on Friday the UK’s priority now was to negotiate a trade deal with Trump “at pace”. He told the BBC: “We want to see the additional tariffs removed.”However, British officials admit that it will be tough to persuade the Trump administration to cut the baseline tariff below 10 per cent, although talks on a deal are continuing.A key aim for British ministers is to cut the 25 per cent global tariff applied by the US to car exports — the automotive sector is one of the most directly exposed parts of the UK economy to the Trump tariffs.“That is a particular concern to me,” business and trade secretary Jonathan Reynolds told MPs on Thursday. The IPPR think-tank estimated that 25,000 direct jobs in the car industry could be at risk, with employees at Jaguar Land Rover and Mini seen as most vulnerable.While the UK’s car industry mainly exports to Europe, the US accounts for one in six models shipped abroad and is the largest market for high-end manufacturers such as JLR, Bentley and McLaren.Reynolds has started a four week consultation with British business on possible retaliatory measures against the Trump tariffs, including targeted measures against selected products. However, Reynolds has made it clear that business does not want an escalation of a trade war.British negotiators, including Britain’s US ambassador Lord Peter Mandelson, are looking at scrapping or scaling back Britain’s digital services tax, which mainly affects US tech firms, along with other concessions, such as cutting tariffs on certain meat and seafood products.The UK is also trying to secure a tech partnership with the US as part of a broader economic deal, including regulatory changes to facilitate transatlantic co-operation.Reynolds has dismissed suggestions that American criticisms of free speech in Britain are part of trade negotiations and rejected the idea that the UK would water down its online safety laws to appease US tech firms.“The talks I have had with my US counterparts are to do with goods, services, the regulation of professional bodies and all the things we would associate with normal trade talks,” Reynolds told MPs on Thursday.“The United States is not seeking to make our children unsafe or more vulnerable. That is not the right approach to take to our key and core ally.” More

Oil prices continued to fall on Friday, extending Thursday’s sharp drop. Brent crude, the international benchmark, traded at its lowest level in more than three years, below $65 a barrel, a fall of almost 8 percent.Fears that President Trump’s tariffs could slash global economic growth — and demand for oil as a result — were weighing on the market, analysts said.China’s announcement on Friday of 34 percent retaliatory tariffs against the United States has further stoked worries that demand for oil and other commodities could be throttled by the trade turmoil.Thursday’s surprise decision by a Saudi Arabia-led group of countries in the OPEC Plus cartel to accelerate planned production increases has added to the downward pressure. Essentially, the market is worried about a bearish mixture of tariffs weakening demand, compounded by growing pressure from oil-producing countries like Iraq and Kazakhstan to add to supplies.In a note to clients, analysts at Morgan Stanley said that in a recession — which is a looming possibility — demand growth for oil “typically falls at least to zero.” More

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Brewers have warned that a 25 per cent tariff on beer imports to the US could lead to 100,000 job losses and brewery closures in Europe as they called on the European Commission to defend them from the levy. The introduction of the levy this week as part of US President Donald Trump’s “liberation day” tariffs has blindsided brewers and will inflict a financial hit on American importers of European and Mexican beers such as Heineken and Corona. Brewers said they were confused about whether the new tariff applied to all beer or only to products imported in cans. “We are calling on the commission to use all diplomatic channels and whether through negotiation or retaliation, find a way to de-escalate this tariff in which we have become a collateral victim,” said Julia Leferman, secretary-general of Brewers of Europe, a trade group whose members include AB InBev, Heineken and Molson Coors. Brewers of Europe, which also represents Carlsberg, Asahi and trade groups from 28 countries, said the EU’s directorate general for trade had contacted US officials but had failed to get clarity on the scope of the tariffs, which come into effect on Friday. The 25 per cent rate is higher than the 20 per cent tariff that will apply to all EU goods imported into the US. European brewers exported €870mn worth of beer to the US in 2024, according to the trade group. It estimates that 100,000 out of 2mn brewing jobs in the bloc could be lost as a result of the move. Analysts estimate that US imports of Mexican beers make up about 85 per cent of sales by Constellation Brands, which produces Corona and Modelo. Heineken’s exposure is much lower, with imports to the US making up 3 per cent of group sales. Constellation did not immediately respond to a request for comment. Heineken declined to comment.Aluminium imports to the US were already subject to tariffs before Trump’s sweeping announcements this week, which widened his global trade war.Brewers were dragged into the president’s net on Thursday when the US commerce department added imports of “beer” and “empty aluminium cans” to the list of products subject to a 25 per cent tariff. “We struggle to understand why beer has been downgraded to be a derivative product of aluminium,” Leferman said. “It can’t be that we are listed alongside cables and wires.”The wording of the commerce department’s amendment to its “aluminium presidential proclamation” left many unanswered questions, the industry has said. An executive at one international brewer said it was not clear whether only beer in cans was included in the scope of the tariff, or all beer. Another brewing giant said the wording of the amendment was “causing confusion”, adding that they had concluded for now that it meant beer and beer cans. Analysts at Citi said the change meant that US beverage producers were “likely to source more cans domestically” but that the broader impact on the aluminium market would be “marginal”. The aluminium in the cans came mostly from Mexico, Canada and China, they estimated.William Bain, head of trade policy at the British Chambers of Commerce, said beer had been included within the tariffs after representations by US industry, making it harder for foreign competition to access the American market.  Additional reporting by Peter Foster in London More

China struck back at President Trump on Friday, imposing 34 percent tariffs on all U.S. products, matching the levies that he announced this week on Chinese goods. Stock markets plunged further as worries deepened about a global trade war.The Stoxx Europe 600 index fell more than 4 percent, erasing its gains for the year and extending the slide in global markets that began Thursday after Mr. Trump announced steep worldwide tariffs. In Japan, the Nikkei 225 fell 2.8 percent, matching its drop the day before.The S&P 500, which posted its worst daily loss since 2020 on Thursday, falling 4.8 percent, was set to fall about 3.5 percent on Friday, according to futures trading. The dour market news came hours before the latest official snapshot of the U.S. labor market was set to be released, which analysts and policymakers were watching for the impact of the Trump administration’s economic policies. More

Unlock the White House Watch newsletter for freeYour guide to what the 2024 US election means for Washington and the worldChina has announced tariffs of 34 per cent on all US imports in retaliation for duties unveiled by President Donald Trump this week, moving the world closer to a full-blown trade war.Global stock markets extended their losses on Friday after the announcement, with futures tracking the S&P 500 down 3 per cent and the Europe-wide Stoxx 600 4.3 per cent lower.China’s Ministry of Commerce said on Friday that the tariff, which matches Trump’s latest increase in duties on Beijing, would be imposed on all imported goods from the US from April 10, a day after America’s “reciprocal” levies come into effect.Trump’s announcement this week of the 34 per cent tariff on Chinese imports to the US will take Washington’s total levies on Chinese goods to more than the 60 per cent he threatened during last year’s election campaign.Beijing, which had previously considered such a level of tariffs as a worst-case scenario, denounced the new US duties as “a typical unilateral bullying move”.It added that this week’s round of US tariffs “does not comply with the rules of international trade and seriously damages the legitimate rights and interest of China”.Some content could not load. Check your internet connection or browser settings.Beijing’s latest measures are likely to have the most impact on US agricultural exports, including soyabeans, wheat and corn. China is also a significant importer of pharmaceuticals, crude oil, petroleum gas and liquefied natural gas from the US.The trade war comes at a sensitive moment for Chinese President Xi Jinping, who has leaned on exports to steer the world’s second-largest economy through a property sector slump and deflation.Trump’s move to impose steep tariffs on US trading partners around the world has convulsed markets. On Thursday, about $2.5tn in market value was erased from Wall Street stocks and all of the dollar’s post-election gains were wiped out.As the falls continued on Friday, the FTSE 100 slumped 3.8 per cent and Germany’s Dax lost 3.7 per cent.Some content could not load. Check your internet connection or browser settings.Investors swept into US Treasuries, pushing the 10-year yield down 0.16 percentage points on the day to 3.9 per cent, their lowest since early October.Beijing is among the biggest targets of the “reciprocal” tariffs unveiled by Trump, who had already imposed a separate duty of 20 per cent on Chinese goods earlier this year.Andrew Gilholm, head of China analysis at consultancy Control Risks, said Beijing could suffer “major self-inflicted damage” from fully matching US tariffs, given China’s trade surplus with the US and the tariffs it already has in place.China announced export bans on seven types of rare earths on Friday, while US tech companies, including drone makers Skydio and Brinc Drones, were added to its “unreliable entity” list, which bans Chinese suppliers from selling components to them. More

In the weeks leading up to his expansive global tariffs, President Trump and his top aides tried to prime the public for economic pain. They warned that while there would be fallout from their aggressive trade strategy, it would prove short-lived and benefit the economy in the long run.Investors, businesses and others made clear on Thursday that the U.S. economy was not ready to accept that approach. Global markets tumbled, economists warned of a possible recession and consumers braced for price increases on cars, food, clothing and more.The early tumult underscored the high stakes of Mr. Trump’s agenda, which the president has framed as a painful medical procedure to rescue an economy he likened to a “sick patient.” In the eyes of Mr. Trump, the United States is going to “boom” once his tariffs have had time to reset the nation’s trade relationships, raise revenue and boost domestic production.But those tariffs are expected to send prices skyrocketing in the interim, an unwelcome development for Americans already struggling with years of elevated prices. Several economists have increased the odds of a recession in their forecasts as they projected a slowdown in consumer spending, business investment and economic growth.A new analysis from the Yale Budget Lab found that Mr. Trump’s overall tariffs could cause price levels to rise 2.3 percent in the short term. That would translate into an average loss of $3,800 in purchasing power per household based on 2024 dollars.“Prices are going to go up, period,” said Martha Gimbel, executive director of the Yale Budget Lab, adding that companies were going to feel the immediate pinch. “These are really big tariffs. These are not things we can expect companies to just absorb.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More