The sweeping penalties announced against the serene backdrop of the White House Rose Garden on Wednesday immediately unleashed turbulence across world markets and drew condemnation from other leaders now facing the end of an era of trade liberalisation that has shaped the global order for decades.

As Asia digested the news on Thursday, stock markets in Beijing and Tokyo sank to multi-month lows, with US and European stock futures also pointing to sharp losses as investors scrambled to the safety of bonds and gold.

Now facing 54% tariffs on exports to the US, the world's No. 2 economy China vowed countermeasures, as did the European Union (EU), Washington's friends and foes united in criticism of measures they fear will deal a devastating blow to global trade.

"The consequences will be dire for millions of people around the globe," EU Chief Ursula von der Leyen said in a statement, adding the 27-member bloc was preparing to hit back if talks with Washington failed.

US Treasury Chief Scott Bessent warned that such retaliatory moves would only lead to escalation.

Among close US allies, the EU was targeted with a 20% rate, Japan with 24%, South Korea with 25% and Taiwan with 32%. Even some tiny territories and uninhabited islands in the Antarctic were hit by tariffs, according to a list posted by the White House on X.

--Reuters--