Japan’s main Nikkei index of shares fell in early trading Wednesday after Wall Street stocks turned lower on worries about U.S. tariffs and a trade war with China.
The Nikkei 225 was down 2.67% to 32,130.00, having rebounded 6% on Tuesday from heavy losses after U.S. President Donald Trump’s announcement of sweeping tariffs.
The S&P 500 Index rallied as much as 4% in early trading in what was its biggest advance since 2022, on signs Trump was open to negotiating trade deals. Yet it ended down 1.6% after the White House said it’s pressing ahead with its tit-for-tat retaliation against China.
Trump has assigned two members of his Cabinet to kick off bilateral trade talks after a telephone call with Prime Minister Shigeru Ishiba. Japan appeared set to get priority over other U.S. trading partners in talks on tariffs, putting Tokyo at the head of a long queue of nations seeking to roll back the levies.
Trump made a string of comments Monday about his planned duties on worldwide trading partners. Yet the president offered little clarity about what he is seeking in exchange for lowering duty rates — or whether he’s willing to offer relief at all.