Trump tariffs live: Asian stocks rebound and China vows to ‘fight to the end’ after Trump threatens new levy

Hong Kong leader John Lee said the city will remain an international free port even after Donald Trump’s tariffs threaten to hurt the financial hub’s economy.

Mr Lee said the city would sign more free trade pacts to diversify its risk amid a global trade war triggered by what he called “ruthless” US tariffs.

“The US no longer adheres to free trade, arbitrarily undermining the internationally established rules of world trade, and its ruthless behaviour damages global and multilateral trade,” Mr Lee, who was sanctioned by the US in 2020 for his role in the rights crackdown in Hong Kong, told reporters.

Hong Kong, as an international trade hub, will be affected by US tariffs in the short term but Mr Lee said the city not planning to impose any retaliatory tariffs on the US right now.

Bangladesh’s interim government has urged the US to postpone a 37 per cent tariff on the South Asian country for at least three months, citing efforts to boost imports from the US.

Bangladeshi exporters, especially in the garment sector, are bracing for the impact of the tariff.

The delay would allow Dhaka to “smoothly implement its initiative to substantially increase US exports to Bangladesh,” the office of chief adviser Muhammad Yunus said in a statement.“

We are the first country to take such a pro-active initiative,” Dr Yunus wrote, referring to the February visit of his representative, Khalilur Rahman, to Washington to begin trade discussions.

Bangladesh has signed a multi-year agreement to import liquified natural gas from the US and plans to increase purchases of cotton, wheat, corn and soybeans, according to the statement.

Dr Yunus said Bangladesh maintains the lowest tariffs on US exports in South Asia and plans further cuts. He also listed reforms underway to ease non-tariff barriers:

“We are eliminating certain testing requirements, rationalizing packaging, labelling and certification rules, and simplifying customs procedures and standards.”

Japan is expected to be prioritised in the US tariff talks following a phone call between Donald Trump and prime minister Shigeru Ishiba, who urged the US president to rethink his tariff policies.T

alks between the US and a long line of countries seeking to roll back Mr Trump’s “reciprocal” duties are scheduled to kick in on Wednesday.

Treasury secretary Scott Bessent, who will lead the American side of the negotiation, said: “I would expect that Japan is going to get priority” among trading partners for coming forward very quickly

.Mr Trump’s decision to impose a 25 per cent levy on auto imports, and another 24 per cent tariff on other Japanese goods, is expected to deal a huge blow to Japan’s export-heavy economy.”Countries from all over the world are talking to us. Tough but fair parameters are being set,” Mr Trump wrote on Truth Social.

The Japanese prime minister said he told Mr Trump in a telephone call that his tariff policies are extremely disappointing and urged him to rethink.

“So we have a great relationship with Japan. We’re going to keep it that way,” Mr Trump later told reporters.

Taiwan can negotiate with the US at any time on the tariffs issue, foreign minister Lin Chia-lung said today, as the island’s stock market pared losses, having plummeted the previous day on trade fears.

Major semiconductor producer Taiwan, hit with a 32 per cent duty, was singled out by US president Donald Trump as among the US trading partners with one of the highest trade surpluses with the country.

Mr Lin said that Taiwan is ready to talk about a variety of issues with the US, including investment in and purchases from the country and non-tariff barriers.

“As long as there is a confirmed time and method for negotiations, they can be discussed at any time with the United States,” he added.

Taiwan’s benchmark stock index, which logged its worst fall ever yesterday, down almost 10 per cent, made up some of those losses this morning.

Asian markets appear to be making rebounds after a gut-wrenching few days for investors following US president Donald Trump’s tariffs on dozens of nations.

Japan’s Nikkei 225 rebounded strongly to rise 6.41 per cent during opening trade after Mr Trump and Japan prime minister Shigeru Ishiba agreed to open trade talks in a phone call yesterday.

In South Korea, the Kospi rose 1.7 per cent and the small-cap Kosdaq climbed 2.35 per cent.China’s Shanghai Composite limped up to 0.8 per cent.

Hong Kong’s Hang Seng Index jumped 3 per cent, recovering some of the massive losses it suffered on Monday when it plunged 13.2 per cent.

China said it would not bow to “blackmail” from the US as a global trade war kicked off by US president Donald Trump’s sweeping tariffs showed little sign of abating even as battered stock markets steadied.

Mr Trump said he would impose an additional 50 per cent duty on US imports from China on Wednesday in response to Beijing’s decision to match the 34 per cent duties Mr Trump initially unveiled last week.

“The US side’s threat to escalate tariffs against China is a mistake on top of a mistake, once again exposing the American side’s blackmailing nature,” China’s commerce ministry said in a statement.

“If the US insists on having its way, China will fight to the end.”

The EU has warned it is finalising its list of countermeasures tonight.

EU trade commissioner Maros Sefcovic said: “When it comes to the volume of counter measures, when it comes to steel, aluminium and derivatives, we are finalising the list tonight.”