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Chinese President Xi Jinping and U.S. President Donald Trump.
Dan Kitwoodnicholas Kamm | Afp | Getty Images
What you need to know
- U.S. markets dropped Friday morning after China announced retaliatory tariffs of 34% on all goods from America.
- The move came two days after President Donald Trump imposed a far-reaching "reciprocal tariff" policy, including a 10% baseline tariff on almost every country and much higher duties for many.
- Trump now says he is open to negotiations, contradicting White House aides who insist the sweeping tariffs are not a bargaining tactic.
- The risk of a U.S. recession is now "uncomfortably high," warned Allianz's Chief Economic Advisor Mohamed El-Erian.
- European stocks fell more than 2% after their worst session in eight months.
CNBC's reporters are covering the tariffs and their effects, live on air and online from our bureaus in Washington; London; Singapore; San Francisco; and Englewood Cliffs, New Jersey.
China tariffs slap back at Trump's plan
China's President Xi Jinping attends the Asia-Pacific Economic Cooperation (APEC) Summit in San Francisco, California, U.S. November 17, 2023.
Carlos Barria | Reuters
China's finance ministry on Friday said it will impose a 34% tariff on all goods imported from the U.S.
The China tariffs take effect on April 10.
The move follows Trump's tariff announcement on April 2, where he instituted a 10% baseline tariff on all countries and much higher rates on many. He put a 34% tariff on China, though combined with preexisting tariffs, the effective rate is 54%.
"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.
Read CNBC's full article here.
— Ruxandra Iordache
White House posts breezy photo of Trump after stock market rout
The weekend is looking like a breeze for Trump — if not for stock market investors hammered by the fallout from his new tariffs.
The White House posted a tweet showing Trump walking with his hair, tie and suit jacket blown back from the wind, with the italicized message, "Almost Friday."
The tweet's jaunty vibe contrasted with a metaphorical bloodbath on Wall Street, where the major stock indices all suffered big drops.
— Dan Mangan
Infiniti indefinitely stops crossover production for U.S. in Mexico
A general view of the Nissan CIVAC plant, in Jiutepec, Morelos state, Mexico March 28, 2025.
Margarito Perez Retana | Reuters
Nissan Motor's luxury Infiniti brand has indefinitely paused production of two Mexico-built crossovers for the U.S. in response to the newly imposed 25% tariffs on imported vehicles by Trump.
In a memo to the brand's retailers, Infiniti Americas Vice President Tiago Castro said QX50 and QX55 output for the U.S. is halted "until further notice" due to the tariffs, Automotive News reported Thursday.
A company spokesman confirmed the actions Thursday afternoon to CNBC and said the Japanese automaker is reviewing its "production and supply chain operations to identify optimal solutions for efficiency and sustainability."
"We will continue to evaluate the impact, as well as market needs, to make any additional adjustments to production," Nissan said in an emailed statement.
Separately, Nissan on Thursday confirmed it will maintain two shifts of production of the Nissan Rogue crossover at its Smyrna, Tennessee, plant that is free of the new auto tariffs.
Nissan had planned to scale back Rogue production in Smyrna to a single shift starting this month.
— Michael Wayland
English (US)