First Thing: Global stock markets slump as Trump’s tariffs take hold

Further tariffs including 104% on China take effect. Plus, conservative justice Amy Coney Barrett becomes target for Maga attacks

Good morning.

The US and China are heading towards an all-out trade war, as Donald Trump unleashed a new wave of tariffs against dozens of partners that triggered a fresh day of stock market turmoil.

How are markets moving in Wednesday trading? The UK’s FTSE 100 index slid 2.4%, Germany’s DAX fell 2.8%, France’s CAC dropped 2.5% and Japan’s Nikkei slumped 3.9%, but China’s SSE index was up 1.3% at the time of writing. Follow our live coverage here.

What’s going on with bonds? Investors are alarmed at how the tariffs have provoked a sell-off in US bonds, causing yields for 10-year notes – usually the benchmark safe-haven asset, and a reference point for the cost of US government borrowing – to climb to 4.36%.

Why has Trump’s tariff methodology been disparaged? The new wave of tariffs are tailored to specific countries based on a formula that has been criticized by economists that divides trade in goods deficit by twice the total value of imports.

What did the UN secretary general say? Pointing to the Geneva conventions governing the treatment of people in war, Guterres emphasized the obligation of the “occupying power” to ensure the provision of food and medical supplies to the population. “None of that is happening today. No humanitarian supplies can enter Gaza,” Guterres said.

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