The Latest: Asia and European shares sink as US tariffs take effect
Asian and European shares slid on Wednesday, with Japan’s Nikkei 225 dipping more than 5%, as the latest set of U.S. tariffs including a massive 104% levy on Chinese imports took effect.
The Nikkei 225 lost 3.9% to 31,714.03. In Hong Kong, the Hang Seng lost 0.4% to 20,041.03, while the Shanghai Composite index reversed early losses, gaining 0.9%. to 3,173.56. Taiwan led losses in Asia, as its Taiex plunged 5.8%.
China said it will take “resolute measures” to defend its trading rights, but gave no details on how it will respond to U.S. moves.
Germany’s DAX lost 2.1% to 19,857.36. In Paris, the CAC 40 declined 2.1% to 6,949.92. Britain’s FTSE 100 gave up 2% to 7,753.42.
The future for the S&P 500 lost 0.7% while that for the Dow Jones Industrial Average was down 0.5%.
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Trump disrupts global economic order even though the US is dominant
WASHINGTON (AP) — By declaring a trade war on the rest of the world, President Donald Trump has panicked global financial markets, raised the risk of a recession and broken the political and economic alliances that made much of the world stable for business after World War II.
Trump's latest round of tariffs went into full effect at midnight Wednesday, with higher import tax rates on dozens of countries and territories taking hold.
Economists are puzzled to see Trump trying to overhaul the existing economic order and doing it so soon after inheriting the strongest economy in the world. Many of the trading partners he accuses of ripping off U.S. businesses and workers were already floundering.
“There is a deep irony in Trump claiming unfair treatment of the American economy at a time when it was growing robustly while every other major economy had stalled or was losing growth momentum,” said Eswar Prasad, professor of trade policy at Cornell University. “In an even greater irony, the Trump tariffs are likely to end America’s remarkable run of success and crash the economy, job growth and financial markets.’’
Trump and his trade advisers insist that the rules governing global commerce put the United States at a distinct disadvantage. But mainstream economists — whose views Trump and his advisers disdain — say the president has a warped idea of world trade, especially a preoccupation with trade deficits, which they say do nothing to impede growth.
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Republicans are going public with their growing worries about Trump's tariffs
WASHINGTON (AP) — Manufacturers struggling to make long-term plans. Farmers facing retaliation from Chinese buyers. U.S. households burdened with higher prices.
Republican senators are confronting the Trump administration with those worries and many more as they fret about the economic impact of the president's sweeping tariff strategy that went into effect Wednesday.
In a Senate hearing and interviews with reporters this week, Republican skepticism of President Donald Trump's policies ran unusually high. While GOP lawmakers made sure to direct their concern at Trump's aides and advisers — particularly U.S. Trade Representative Jamieson Greer, who appeared before the Senate Finance Committee Tuesday — it still amounted to a rare Republican break from a president they have otherwise championed.
Lawmakers had reason to worry: the stock market has been in a volatile tumble for days and economists are warning that the plans could lead to a recession.
"Whose throat do I get to choke if this proves to be wrong?” Republican Sen. Thom Tillis told Greer as he pressed for an answer on which Trump aide to hold accountable if there is an economic downturn.
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AP PHOTOS: A bombed-out Gaza university becomes a shelter for displaced Palestinians
GAZA CITY, Gaza Strip (AP) — The main auditorium of the Islamic University of Gaza is a gutted, burned-out wreck. Giant holes have been blasted through its blackened walls. The banks of seats are mangled and twisted.
And now the stage, once the scene of joyous graduation ceremonies, is crowded with the tents of the displaced. The campus has become a refuge for hundreds of families in northern Gaza since Israel broke a ceasefire in March and relaunched the war.
The families say they took shelter in the university because the U.N. schools-turned-shelters are already overwhelmed. More than 400,000 Palestinians across Gaza have been displaced by Israeli evacuation orders since it resumed its campaign, according to the U.N. Most have already been displaced multiple times during the war.
Like all of Gaza’s 17 universities and colleges, the Islamic University has been decimated by Israeli bombardment and ground offensives over the past 18 months. Palestinians and several international academic groups have condemned it as “scholasticide,” the systematic destruction of the territory’s educational system.
Any sense that this was once a university is gone.
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Netanyahu-Trump meeting reveals unexpected gaps on key issues
TEL AVIV, Israel (AP) — Israeli Prime Minister Benjamin Netanyahu traveled to Washington for a hastily organized White House visit bringing a long list of concerns: Iran's nuclear program. President Donald Trump's tariffs. The surging influence of rival Turkey in Syria. And the 18-month war in Gaza.
Netanyahu appeared to leave Monday's meeting largely empty-handed — a stark contrast with his triumphant visit two months ago. During an hourlong Oval Office appearance, Trump appeared to slap down, contradict or complicate each of Netanyahu’s policy prerogatives.
On Tuesday, Netanyahu declared the meeting a success, calling it a “very good visit” and claiming successes on all fronts. But privately, the Israeli delegation felt it was a tough meeting, according to a person familiar with the matter who spoke on condition of anonymity in line with regulations.
Netanyahu “didn’t hear exactly what he wanted to hear, so he returns back home with very little,” said Nadav Eyal, a commentator with the Yediot Ahronot daily, who added that the visit was still friendly, despite the disagreements.
Netanyahu's second pilgrimage to Washington under Trump's second term was organized at short notice and billed as an attempt to address the new U.S. tariff regime. But it came at a pivotal time in Middle East geopolitics. Israel restarted the war in Gaza last month, ending a Trump-endorsed ceasefire, and tensions with Iran are rising over its nuclear program.
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Beijing rejects Ukraine's claim significant numbers of Chinese troops are fighting alongside Russia
Ukraine’s claim that significant numbers of Chinese nationals are fighting alongside Russia’s invading army is “totally unfounded,” a Beijing official said Wednesday.
Ukraine’s President Volodymyr Zelenskyy announced Tuesday that the Ukrainian military had captured two Chinese men fighting alongside the Russian army in the eastern Donetsk region and had information that “significantly more” are with Russian forces.
It was the first time that Ukraine had made such a claim about Chinese fighters on its soil amid Russia’s almost three-year invasion.
Chinese Foreign Ministry spokesperson Lin Jian said in Beijing that China has played a “constructive role in politically resolving the Ukraine crisis.”
Lin told a daily news briefing Wednesday that “the Chinese government always asks Chinese citizens to stay away from conflict zones, avoid getting involved in any form of armed conflict, and especially refrain from participating in any party’s military operations.”
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The roof collapses at a Dominican Republic nightclub, killing at least 98 people
SANTO DOMINGO, Dominican Republic (AP) — Rescuers frantically searched overnight for more survivors in the rubble of the iconic Jet Set nightclub in the Dominican Republic's capital, more than 24 hours after the roof collapsed during a merengue concert attended by politicians, athletes and others. At least 98 people were killed in the collapse early Tuesday.
Rescue crews shushed people around them so they could listen for faint cries for help in the rubble of the one-story building in Santo Domingo. Firefighters removed blocks of broken concrete and used wood planks to lift heavy debris as the noise of drills breaking through concrete filled the air.
Late Tuesday night, those still looking for their family and friends gathered around a man playing a guitar outside the club as they sang hymns.
Emergency operations director Juan Manuel Méndez said Tuesday evening sounds were still being been heard in the rubble and the rescue crews were prioritizing three areas.
“We’re going to search tirelessly for people," Méndez said.
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Beijing ups diplomatic pressure on Africa as the US pulls back
BEIJING (AP) — Chinese diplomats threatened to cancel a summit and called top officials in two African countries to pressure lawmakers to quit an international parliamentary group critical of China, officials from the group told The Associated Press.
It's an example of how far China will go to influence politicians overseas, and how that pressure can succeed behind closed doors.
In the past year, lawmakers from Malawi and Gambia withdrew from the Inter-Parliamentary Alliance on China, or IPAC, a group of hundreds of lawmakers from 38 countries concerned about how democracies approach Beijing, according to letters, messages and voice recordings obtained by The Associated Press.
Founded in 2020, the group has coordinated sanctions on China over rights abuses in Xinjiang and Hong Kong and rallied support for Taiwan, a self-ruled democratic island Beijing claims as its territory.
African politicians and experts say it’s an escalation of Chinese diplomatic pressure in Africa, where Beijing's influence is growing. Beijing has built deep ties with African leaders by developing mines and building infrastructure through state-owned construction companies, often funded by loans from state-owned banks.
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Trump administration halts $1 billion in federal funding for Cornell, $790 million for Northwestern
WASHINGTON (AP) — More than $1 billion in federal funding for Cornell University and around $790 million for Northwestern University have been frozen while the government investigates alleged civil rights violations at both schools, the White House says.
It's part of a broader push to use government funding to get major academic institutions to comply with President Donald Trump ’s political agenda. The White House confirmed the funding pauses late Tuesday night, but offered no further details on what it entails, or what grants to the schools are being affected.
The moves come as the Trump administration has increasingly begun using governmental grant funding as a spigot to try and influence campus policy — previously cutting off money to schools including Columbia University and the University of Pennsylvania.
That has left universities across the country struggling to navigate cuts to grants for research institutions.
In a statement, Cornell said it had received more than 75 stop work orders earlier Tuesday from the Defense Department related to research “profoundly significant to American national defense, cybersecurity, and health” but that it had not otherwise received any information confirming $1 billion in frozen grants.
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AP wins reinstatement to White House events after judge rules government can’t bar its journalists
A federal judge ordered the White House on Tuesday to restore The Associated Press’ full access to cover presidential events, affirming on First Amendment grounds that the government cannot punish the news organization for the content of its speech.
U.S. District Judge Trevor N. McFadden, an appointee of President Donald Trump, ruled that the government can't retaliate against the AP’s decision not to follow the president’s executive order to rename the Gulf of Mexico. The decision, while a preliminary injunction, handed the AP a major victory at a time the White House has been challenging the press on several levels.
“Under the First Amendment, if the Government opens its doors to some journalists—be it to the Oval Office, the East Room, or elsewhere—it cannot then shut those doors to other journalists because of their viewpoints,” McFadden wrote. “The Constitution requires no less.”
It was unclear whether the White House would move immediately to put McFadden’s ruling into effect. McFadden held off on implementing his order for a week, giving the government time to respond or appeal. Shortly after the ruling, an AP reporter and photographer were turned away from joining a motorcade with the White House press pool to cover Trump’s appearance before the National Republican Congressional Committee.
The AP has been blocked since Feb. 11 from being among the small group of journalists to cover Trump in the Oval Office or aboard Air Force One, with sporadic ability to cover him at events in the East Room.
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