Trump announced a 104% tariff on Chinese goods, leading to wild fluctuations in US stocks and causing the volatility index to soar.

Taiwan • Business • 04/09 07:13
Trump announced a 104% tariff on Chinese goods, leading to wild fluctuations in US stocks and causing the volatility index to soar.

On April 9, President Trump of the United States imposed a 104% tariff on Chinese imports, causing turmoil in global financial markets. The three major U.S. stock indices experienced significant declines, with Dow Jones Industrial Average futures dropping by 785 points at one point, the S&P 500 index falling 115.5 points, and the Nasdaq 100 index dropping 398 points. Panic in the market intensified, with the VIX index soaring to 52.33, marking its highest level since 2020. Investors moved from optimism to selling, reflecting their concerns over the escalating trade war.

Key Updates

04/09 10:42

Due to tariffs, iPhone prices in the U.S. may increase by 12% to 43%, leading to a consumer buying spree.

On April 9, 2025, President Trump of the United States imposed a 104% tariff on Chinese imports, creating cost pressures for Apple Inc. If Apple decides to pass these costs onto consumers, iPhone prices could increase by 12% to 43%, with some high-end models seeing an increase of up to $350. This policy has sparked a buying frenzy among American consumers, resulting in a surge of crowds at Apple stores. Apple has yet to announce any price adjustments, but it may absorb some costs and pressure suppliers to reduce prices to maintain its profit margins. If the tariffs continue, price adjustments might become unavoidable.

04/09 10:11

In the year 2025, the escalation of the trade war between the US and China caused market turmoil: US Treasury bonds plummeted, bond yields soared, and the stock market and the dollar both fell.

On April 9, 2025, the trade war between the US and China escalated as the United States imposed a 104% tariff on goods from China, and China responded with an 84% retaliatory tariff, leading to turmoil in global financial markets. The US Treasury market experienced a sell-off, with the 10-year Treasury yield breaking past 4.5% and the 30-year surpassing 5%, marking the largest three-day rise since 1982. US stocks and the dollar both declined, and hedge funds unwinding high-leverage basis trades triggered a bond market crash, spreading panic to global bond markets and safe-haven assets. The demand for US Treasuries weakened, and market confidence took a hit.

04/09 09:09

China Publishes White Paper on China-US Economic and Trade Relations: Criticizes US Unilateral Policy, Urges Dialogue to Resolve Disputes

On April 9, 2025, China's State Council Information Office released a white paper titled "China's Stance on Various Issues in China-U.S. Economic and Trade Relations," criticizing the United States for its unilateral and protectionist measures, accusing it of violating international trade rules and disrupting the economic and trade relations between China and the U.S. China reiterated that the economic and trade relations between China and the U.S. are mutually beneficial and urged the U.S. to resolve differences through dialogue on equal terms, and stated that if the U.S. escalates its restrictive measures, China will respond with countermeasures.

04/09 09:09

Trump's New 2025 Tariff Policy Sparks Global Business Community Backlash: Emerging Inflation Risks and Logistics Crisis

U.S. President Donald Trump initiated a global reciprocal tariff policy on April 9, 2025, imposing at least a 10% tariff on imported goods, with tariffs on Chinese goods reaching as high as 104%. This move has triggered global market turmoil, with Wall Street business leaders, such as JPMorgan Chase CEO Jamie Dimon, opposing it and warning of risks such as inflation and investment stagnation. Taiwanese companies are facing challenges like having their export containers rejected. The UK, Japan, Vietnam, India, and Cambodia might quickly reach tariff agreements, which could potentially benefit companies like Nike.

04/09 09:09

Impact of US Tariff Policy on Taiwan: 11 Products Could See Price Increases, Sock Industry Calls for Government Subsidies

On April 9, 2025, U.S. President Donald Trump imposed a 104% tariff on Chinese goods and a 32% tariff on goods from Taiwan and other countries, impacting Taiwan's export and retail sectors. Costco's Taiwan branch is under pressure to raise prices on 11 items, and sock manufacturers in Changhua have been notified by American clients to halt shipments, calling on the government to negotiate tax cuts and offer subsidies. The Taiwanese government has assembled a negotiation team to travel to the U.S. for discussions, and the industry is looking forward to concrete relief measures.

04/09 07:13

Trump announced a 104% tariff on Chinese goods, leading to wild fluctuations in US stocks and causing the volatility index to soar.

On April 9, President Trump of the United States imposed a 104% tariff on Chinese imports, causing turmoil in global financial markets. The three major U.S. stock indices experienced significant declines, with Dow Jones Industrial Average futures dropping by 785 points at one point, the S&P 500 index falling 115.5 points, and the Nasdaq 100 index dropping 398 points. Panic in the market intensified, with the VIX index soaring to 52.33, marking its highest level since 2020. Investors moved from optimism to selling, reflecting their concerns over the escalating trade war.

04/09 07:13

Trump announces a 104% tariff increase on China, sparking global market turmoil: U.S. stock futures take a nosedive, Taiwanese stocks take a hit, and the New Taiwan dollar weakens.

On April 9, 2025, President Trump of the United States announced a 104% tariff increase on Chinese goods, leading to turmoil in global financial markets. U.S. stock futures saw a significant drop, with the Dow Jones Industrial Average dropping 778 points, and the Taiwan Stock Exchange dropping a total of 2,837 points over two days. The New Taiwan dollar depreciated to 33.073 dollars, while the euro surpassed $1.1 as the dollar weakened. Asia-Pacific stock markets generally declined, with the Nikkei index falling 3.93%. Market volatility was severe, and investor sentiment became more cautious.

04/09 03:38

The intensification of the US-China trade war has caused global stock market volatility: the Nikkei plummeted 1,300 points, Taiwan's stock index fell below 18,000, and US stocks ended the day in the red across the board.

On April 9, 2025, President Trump of the United States imposed a 104% tariff on Chinese goods, and China retaliated with a 34% tariff, escalating the trade tensions and causing turmoil in global stock markets. The Nikkei index plummeted 1,304 points, the South Korean KOSPI index hit a six-month low, Taiwan's stock market dropped below 18,000 points, and TSMC's stock price experienced volatility. All four major U.S. stock indices closed lower, with the S&P 500 falling below 5,000 points. Global markets are facing systemic pressure due to tariff policies.

04/09 02:09

President Trump of the United States levied a 104% tariff on Chinese imports, sparking global market turmoil: U.S. stock markets declined, Apple shares plummeted, and Asian stock markets slipped into a bear market.

On April 9, 2025, President Trump of the United States levied a 104% tariff on Chinese products, further escalating the U.S.-China trade war and leading to global market upheaval. U.S. stocks fell for four straight days, as the S&P 500 index fell below 5,000 points, with Apple's stock price experiencing a cumulative 23% drop. Asian markets were also impacted, with the Kospi index in South Korea entering a bear market and the Nikkei 225 index in Japan plunging more than 1,100 points. The global supply chain faced pressure to restructure, leading companies to adjust their production and logistics strategies. The expansion of production capacity for China's C919 aircraft became a focal point as an alternative in the aviation industry.

04/09 02:09

Trump's New 2025 Tariff Policy Sparks Global Economic Shockwaves: U.S. Hoarding Surge, Asian Exports Suffer, Wall Street Stock Market Plummets

On April 9, 2025, U.S. President Donald Trump initiated the "Reciprocal Tariff" policy, which imposed tariffs ranging from 20% to 50% on 60 countries, including Taiwan, Vietnam, China, and the EU, which caused global market turmoil. American consumers started stockpiling goods, Asian exporting countries suffered significant impacts, and Wall Street experienced a significant downturn. Former U.S. Treasury Secretary Lawrence Summers warned that this policy might lead to an economic recession and urged for its withdrawal. Vietnam proposed allowing duty-free imports of American goods to alleviate the situation.

U.S. Stocks Rebound in Early Trading, Plunge in Afternoon

On April 8, 2023, U.S. stocks opened with optimism regarding tariff negotiations, with the Dow Jones Industrial Average surging 1,461 points in early trading, and the S&P 500 and Nasdaq indices both rising over 4%. However, market sentiment quickly reversed as the White House reiterated that tariffs would be implemented as scheduled, and no exemptions for any products or companies.

As of 1:32 PM Eastern Time on April 9, the Dow Jones Industrial Average had fallen 785 points to 37,077, a decline of 2.07%; the S&P 500 had dropped 115.5 points to 4,904.75, a decrease of 2.30%; and the Nasdaq 100 had fallen 398 points to 16,845.75, a decline of 2.31%. The Philadelphia Semiconductor Index also plummeted 3.6%, with tech stocks being hit hardest.

Fear Index Soars to New High Since the Pandemic

Market panic surged, with the CBOE Volatility Index (VIX) surging 11.39% on April 8 to 52.33, the highest level since April 2020. A VIX index above 50 is typically seen as a sign of extreme market anxiety. Meanwhile, the VVIX index (the volatility of the VIX) also rose to 170.92, indicating a significant increase in demand for hedging against future volatility.

Steve Sosnick, chief strategist at Interactive Brokers, noted, "Traders were overly optimistic about the early rebound, but quickly retreated under a series of negative news, including a 104% tariff on China, the yuan depreciating to a new low level, and weak U.S. Treasury auction results."

Tariff Policy Officially Takes Effect, Global Markets Tumble

According to White House spokesperson Levitt, the Trump administration officially imposed a 104% tariff on Chinese imports starting at 12:01 AM Eastern Time on April 9. This measure covers all Chinese goods imported into the U.S. and simultaneously imposes "reciprocal tariffs" on over 60 other countries, including a 32% import tax on goods from Taiwan, 24% on Japan, and 25% on South Korea.

This move triggered a chain reaction in global markets. Asian stocks fell across the board, with Japan's Nikkei 225 dropping 3.4% intraday, South Korea's Kospi falling 1.5%, and Taiwan's Weighted Index plummeting over 4%. European markets were also affected, with the UK's FTSE 100 opening down more than 2%.

Tech Stocks Lead the Decline, Apple Plummets Nearly 5%

Tech stocks were the hardest hit in this market sell-off. Apple's stock had already fallen 20% over the past month and dropped nearly 5% on April 8. TSMC's ADR fell 3.3%, Intel plunged 7.4%, and NVIDIA dropped 1.4%. The market is concerned that high tariffs will further disrupt global supply chains, particularly impacting the electronics and semiconductor industries.

U.S. Treasury Yields Rise, Funds Shift Towards Gold

Amid market turmoil, the yield on the U.S. 10-year Treasury note rose from 4.164% the previous day to about 4.26%, marking the largest single-day increase in a year. Funds flowed into safe-haven assets, with New York spot gold prices rising 0.8% to $3,006.41 per ounce.

Market Still Digesting the Policy Impact

Although the Trump administration has expressed openness to negotiations, the market generally believes that tariff policies will not ease in the short term. Donald Calcagni, Chief Investment Officer at Mercer Advisors, stated, "We haven't seen the bottom yet. Regarding the entire tariff issue, we are still in the early stages, and resolving this will take time."

References

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