Governments and global markets are bracing for United President Donald Trump’s so-called “reciprocal” tariffs to take effect from 12:01am EST on Wednesday (04:01 GMT).

    The US stock market fell sharply on Tuesday after Trump said import taxes on China would rise to 104 percent, with the benchmark S&P 500 and the tech-heavy Nasdaq Composite falling 1.57 percent and 2.15 percent, respectively.

    The fall in US stocks came after markets rallied strongly earlier in the day amid ongoing uncertainty over Trump’s trade plans.

    Asian stock markets have followed the losses on Wall Street, with Japan’s Nikkei 225 and South Korea’s KOSPI falling about 4 percent and 1 percent, respectively, in early trading on Wednesday.

    China’s Global Times rallies against ‘unilateralism and protectionism’

    China’s Global Times – one of its more outspoken government-affiliated news outlets – has issued a lengthy op-ed calling Trump’s tariffs a threat to globalisation. Some of its key points include:

•     “Economic globalisation is an inevitable path for human progress, and open cooperation is an irreversible trend of history.”
•     “Trade serves as a key engine of economic growth and represents the most fundamental form of globalisation.”
•     “In recent years, the US has refused to acknowledge the gains it has made from free trade, instead portraying itself as a victim of an unfair global trading system.”

    China only joined the World Trade Organization in 2003, but it has since then positioned itself as a champion of global trade and multilateralism.

    Japan’s Nissan may move production facility to the US

    Japanese automaker Nissan has said it is considering moving one of its production plants from Japan to the US, joining the growing list of Asian companies offering to boost investment in the US in response to Trump’s tariffs.

    The move would impact production of Nissan’s Rogue SUV, a five-passenger midsize crossover vehicle, according to Japan’s Kyodo News Agency.

    The US is a major destination for Japanese auto exports, and Trump’s 25 percent blanket tariff on vehicles and key auto parts is expected to take a major bite out of the industry.

    The International Trade Centre has said the Japanese auto industry stands to lose $17bn in US “export potential” if the tariffs remain.

    The Trump administration is separately set to impose a 24 percent tariff on most Japanese goods as part of the “reciprocal” duties set to take effect against dozens of countries from 12.01am EST (04:01 GMT) on Wednesday.

    How could China respond to Trump’s latest tariffs?

    China has several different avenues to respond to Trump’s additional 50 percent tariff, according to Bill Bishop, a well-known China watcher and author of the newsletter Sinocism.

•     Beijing could do a repeat of last week, when Beijing added reciprocal 34 percent tariffs in response to Trump’s “Liberation Day” 34 percent tariff.
•     They could suspend cooperation on fentanyl exports – a considerable sticking point for Trump.
•     Restrict key US imports, including agricultural products. This will hurt some of Trump’s base, since many agricultural states vote Republican.
•     Target US services. The tariff war has focused mainly on goods so far, but the US also exported $46.7bn in services to China in 2023, according to the US Congressional Research Service.
•     Investigate US companies in China or place more US companies on Beijing’s entity list.
•     Ban the export of US films – a major source of revenue for Walt Disney and other US production houses.