Trump eyes China response before launching 104% tariffs amid trade war

US President Donald Trump said on Tuesday he is waiting to hear from China before duties of more than 100 per cent take effect, in a sign that he might be open to last-minute negotiations with the world's No. 2 economic power.

Global markets steadied after days of carnage prompted by Trump's sweeping levies, which have raised fears of recession and upended a global trading order that has been in place for decades. US stock indexes opened sharply higher after a bruising selloff that has wiped out trillions of dollars since last week.

Trump has already implemented a 10 per cent tariff on almost all imports to the world's largest consumer market, and targeted tariffs of up to 50 per cent on many trading partners are due to take effect on Wednesday.

 

China has refused to bow to what it called "blackmail" and vowed to "fight to the end" after Trump threatened to ratchet up tariffs to 104 per cent in response to China's decision to match "reciprocal" duties Trump announced last week.

Trump indicated that a resolution might be possible.

"China also wants to make a deal, badly, but they don't know how to get it started. We are waiting for their call. It will happen!" he said on social media.

Dozens of countries are offering concessions to head off the tariffs. Trump's administration says it has set up talks with several so far, including Japan and South Korea.

China is bracing for a war of attrition, and manufacturers of goods from tableware to flooring are warning about profits, and scrambling to plan new overseas plants. Citing rising external risks, Citi cut its 2025 China GDP growth forecast to 4.2 per cent from 4.7 per cent.

Some companies are warning they will hike prices.

Chipmaker Micron told customers it will impose a tariff-related surcharge starting Wednesday, while US clothing retailers said they are delaying orders and holding off on hiring. Running shoes made in Vietnam that now retail for $155 will cost $220 when Trump's 46 per cent tariff on that country takes effect, according to an industry group.

Consumers are stocking up while they can. "I'm buying double of whatever - beans, canned goods, flour, you name it," Thomas Jennings, 53, said as he pushed a shopping cart through the aisles of a New Jersey Walmart.

As the world's two biggest economies traded blows, China's Foreign Ministry criticised as "ignorant and impolite" comments made by Vice President JD Vance in a recent Fox News interview.

While defending Trump's tariffs, Vance criticised the US economic model as harming its own workers: "We borrow money from Chinese peasants to buy the things those Chinese peasants manufacture."

Vietnam has requested a 45-day delay while Indonesia announced concessions for US imports including reducing taxes on electronic goods and steel.

Stock markets found a firmer footing on Tuesday after a gut-wrenching few days for investors which prompted some business leaders, including those close to Trump, to urge the president to reverse course.

European shares bounced off 14-month lows after four straight sessions of heavy selling, while global oil prices steadied after falling to four-year lows.

Wall Street's main indexes bounced back from a heavy selloff, led by technology stocks.

The European Commission, meanwhile, is mulling counter-tariffs of 25 per cent on a range of US goods including soybeans, nuts and sausages, though other potential items like bourbon whiskey were left off the list. Officials said they stood ready to negotiate.

The 27-member bloc is struggling with tariffs on autos and metals already in place, and faces a 20 per cent tariff on other products on Wednesday. Trump has also threatened to impose tariffs on EU alcoholic drinks.

European pharma companies, also fearful of the tariff fallout, warned von der Leyen in a meeting that Trump's tariffs would expedite the industry's shift away from Europe and towards the United States.