FTSE 100 live: Market turmoil intensifies as China retaliates

Global market turmoil intensified on Wednesday after Donald Trump’s sweeping tariffs took effect and China retaliated with new tariffs on US imports. At midday, the FTSE 100 had lost more than 3.4 per cent and markets around the world had similar declines.

Overnight, the White House has published a document confirming that China’s 34 per cent tariff rate had been increased to 84 per cent. In addition to the 20 per cent tariff already applied, that means Chinese goods entering the US are now being taxed at 104 per cent.

China has swiftly followed suit.

China has announced a second batch of retaliatory tariffs on US goods, slapping an 84 per cent import tax on US products.
 

Meanwhile, at a speech at the National Republican Congressional Committee dinner in Washington DC overnight, Trump told the audience that the US is “very shortly” going to announce a “major tariff” on pharmaceuticals.

It has also been reported that Trump has told Taiwan’s TSMC, a major microchip supplier, that he would slap a 100 per cent tariff on the company if it does not commit to making chips in the US.

Growing turbulence in the US Treasury market is starting to unnerve investors.

US Treasuries sold off on Wednesday, deepening investor concern about the “safe haven” status of US sovereign debt.

The 10-year US Treasury yield jumped to 4.51 per cent before falling back to 4.4 per cent — up 0.14 percentage points on the day — while the 30-year yield briefly rose above 5 per cent.

The 10-year yield has risen from less than 3.9 per cent earlier this week.

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