World Shares Fall Further, With Tokyo Down Nearly 4%, As Trump Threatens More Tariff Hikes

Trump's latest tariffs include a massive 104% levy on U.S. imports of Chinese products.

BANGKOK (AP) — Asian and European shares slid on Wednesday after U.S. President Donald Trump’s latest tariff hikes took effect and he threatened to add still more.

Uncertainty is running high about what Trump will do next in his trade war. In a speech Tuesday night he said plans tariffs on pharmaceuticals so that more medications would be made in the U.S.

Trump’s latest tariffs include a massive 104% levy on U.S. imports of Chinese products. However, Chinese markets reversed early losses and gained ground on Wednesday.

Driving the gains were massive share buybacks by big state-run investment funds and other state companies that often are instructed to support the market in times of crisis. Investors also are expecting the government to step up spending and other measures to help counter the impact of the tariffs, which will hit small manufacturers and traders that create the most jobs the hardest.

Beijing issued a policy paper reiterating China’s right to protect its businesses with unspecified countermeasures, while it emphasized it preferred to resolve trade issues through dialogue.