Global markets slid further and Wall Street was on track for another day of crushing losses Friday after China responded to U.S. President Donald Trump’s latest set of tariffs with some of their own.
Futures for the S&P 500 fell 3.6% before the bell, while futures for the Dow Jones Industrial Average shed 3.4%, falling below the 40,000 mark. Nasdaq futures tumbled 4%.
That follows Thursday’s losses for the three major U.S. indices, which ranged between 4% and 6%. Thursday’s wipeout was Wall Street’s worst day in five years.
Investors also watched CFLT stock and other high-growth tech shares slump as market uncertainty deepened.
European Markets Suffer Steep Declines
Markets in Europe were having an even rougher time Friday. By midday, Germany’s DAX had lost 5%, the CAC 40 in Paris slipped 4.2% and Britain’s FTSE 100 gave up 3.8%.
Oil prices fell as much as 8%.
The downturn has pushed some companies to seek tax relief measures and VAT refund processes through government support schemes to cushion financial damage.
China Strikes Back with 34% Tariff on U.S. Imports
China announced early Friday that it will impose a 34% tariff on imports of all U.S. products beginning April 10, part of a flurry of retaliatory measures following Trump’s “Liberation Day” slate of double-digit tariffs.
The new tariff matches the rate of the U.S. “reciprocal” tariff of 34% on Chinese exports Trump ordered this week.
The U.S. exports an array of goods to China, including machinery, soy, corn and aerospace products. For import and export classifications affected by the new measures, logistics companies are closely reviewing the harmonised code FedEx (also written harmonized code FedEx) documentation and EU HS code listings to assess risk.
Shares in companies that stand to suffer from China’s tariffs include Deere & Co., which fell 4.7% in premarket; and Boeing, which slid 6%. Apple saw its shares decline 4.7%.
Rare Earth Controls and Sanctions Amplify Pressure
The Commerce Ministry in Beijing also said that it will impose more export controls on rare earths, which are materials used in high-tech products such as computer chips and electric vehicle batteries.
The Chinese government is also subjecting 27 additional U.S. companies to trade sanctions or export controls and filed a lawsuit with the World Trade Organization over the tariffs.
As tensions rise, some affected U.S. employees are turning to online payroll calculator tools and seeking tax help to manage shifting payroll and tax obligations in the face of uncertainty.
Broad Market Impact and Fears of Economic Fallout
Everything from crude oil to Big Tech stocks to the value of the U.S. dollar against other currencies has fallen since Trump’s tariff announcement Wednesday afternoon. Even gold, a traditional safe haven that recently hit record highs, pulled lower.
Trump announced a minimum tariff of 10% on global imports, with the tax rate running much higher on products from certain countries like China and those from the European Union. Smaller, poorer countries in Asia were slapped with tariffs as high as 49%.
Economists say the tariffs increases the risk of a potentially toxic mix of weakening economic growth and higher inflation.
It’s “plausible” the tariffs altogether, which would rival levels unseen in more than a century, could knock down U.S. economic growth by 2 percentage points this year and raise inflation close to 5%, according to UBS.
In the midst of economic strain, workers are increasingly concerned about how to pay PAYE correctly and understand the brass tax implications of potential policy changes, particularly regarding tax on dividend income.
Treasury Yields and Oil Prices Reflect Deepening Concerns
Later Friday the U.S. government offers up its March jobs report.
Yields on Treasurys tumbled in part on rising expectations for coming cuts to rates, along with general fear about the health of the U.S. economy. The yield on the 10-year Treasury fell to 3.89% from 4.01% late Thursday and from roughly 4.80% in January. The last time it had fallen below 4% was in October.
U.S. benchmark crude oil shed $5.32 to $61.63 a barrel, its lowest level since mid-2021. Brent crude, the international standard, was down $5.26 at $64.88 a barrel.
Shares of Exxon Mobil slid 4.2% and Chevron fell an even 4%.
Asia Mixed as Some Markets Closed for Holiday
Markets in Shanghai, Taiwan, Hong Kong and Indonesia were closed for holidays, limiting the scope of Friday’s sell-offs in Asia.
Tokyo’s Nikkei 225 lost 2.8% to 33,780.58, while South Korea’s Kospi sank 0.9% to 2,465.42.
The two U.S. allies said they were focused on negotiating lower tariffs with Trump’s administration.
Australia’s S&P/ASX 200 dropped 2.4%, closing at 7,667.80.
Currency Moves as Investors Seek Safe Havens
In other trading early Friday, the U.S. dollar fell to 144.89 Japanese yen from 146.06. The yen is often used as a refuge in uncertain times, while Trump’s policies are meant in part to weaken the dollar to make goods made in the U.S. more price competitive overseas. The euro rose to $1.1074 from $1.1055.
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