Trump threatens China amid Wall Street warnings – Daily Business

China accuses Trump of blackmail * Asia markets recover * Financiers warning of recession

President Donald Trump continued to resist calls to ease back on his tariffs despite warnings from leading Wall Street figures of global-wide damage to the economy and a risk of recession.

Mr Trump issued a new threat to China with extra tariffs that would take US costs on Chinese imports to 104%.

Jamie Dimon, chief executive of the biggest US bank, JP Morgan Chase, issued a warning that tariffs imposed by the US would push up inflation and slow growth.

“The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,” he said in a note to shareholders.

Wall Street billionaire Bill Ackman, a Trump supporter, called for a 90-day pause on the trade war and warned that the world faced “an economic nuclear winter” unless the president backed down. Mr Ackman called for “a 90-day time-out” to renegotiate.

He said: “I have a lot of respect for our president and what he has accomplished so far, but I don’t think he is infallible, which is why I am stating loud and clear that I strongly believe launching tariffs on April 9 against the entire world — massively in excess of what we are being charged — is a mistake.”

The intervention of America’s wealthiest business leaders came amid another day of violent swings on stock markets which wiped billions off valuations.

The FTSE 100 closed 352.9 points (4.38%) lower at 7,702.08. In early trade, the S&P 500 jumped more than 5% in a matter of minutes, amid rumours of a possible pause, which the White House quickly denied. That sent shares lower.

The Dow Jones closed down 0.91%. For a third consecutive day of losses, the S&P 500 fell 0.23% The tech-heavy Nasdaq closed in positive territory, up 0.10%. Europe’s key markets closed between 4.4% and 5.2%.

But shares in Asia rose overnight, suggesting the worst may be over. Japan’s Nikkei 225 share benchmark was up 6% after falling nearly 8% a day earlier and the broader Topix traded 6.8% higher.

Hong Kong’s Hang Seng was up about 2% – after plunging yesterday by more than 13%, its biggest fall in decades.

The markets in South Korea and Australia have also edged up – while in Taiwan and Singapore there have been more losses.

The key index in mainland China, the Shanghai Composite, was broadly flat in morning trading.

China’s Commerce Ministry said: “The US threat to escalate tariffs on China is a mistake on top of a mistake and once again exposes the blackmailing nature of the US.

“China will never accept this. If the US insists on its own way, China will fight to the end.”

Hong Kong’s leader John Lee has said the city will look to deepen trade with South East Asia and the Middle East in response to US tariffs. He also urged businesses to increase sales to mainland China.

Vietnam’s Prime Minister Pham Minh Chinh says the country will buy more goods from the US, including products used for security and defence. It faces a 46% tariff rate.

Thai Prime Minister Paetongtarn Shinawatra has said that she was seeking negotiations with the US. Authorities have also pledged to increase imports of energy, aircraft, and agricultural products from the US.

Despite his apparent doubling down on tariffs, the president indicated on Truth Social that he was open to negotiation.

“Countries from all over the World are talking to us. Tough but fair parameters are being set,” he said as world leaders prepared to make their case for cuts.

Charles Hall, head of research at Peel Hunt, the City investment bank, added that although “there has been no give on tariffs as yet, [Trump] is clearly open to negotiations”.

Dan Coatsworth, investment analyst at AJ Bell, said: “We have now seen the first signs of market stability since the Liberation Day speech. It was also telling that both the FTSE 100 in the UK and the Dax in Germany narrowed their losses as the trading day went on.

“These trends offer a glimmer of hope that we might be near the bottom of the sell-off, although it’s impossible to say with any certainty.

“What happens to markets next could be dictated by negotiations between the US and those on the receiving end of tariffs. The European Union looks to be going down the path of tariff talks rather than retaliating and that calmer approach might be the tonic markets need.”