MUSCAT, Oman (AP) — Iran and the United States will hold more negotiations next week over Tehran’s rapidly advancing nuclear program, Iranian state television reported Saturday at the end of the first round of talks between the two countries since President Donald Trump returned to the White House.

Iranian state TV said U.S. Mideast envoy Steve Witkoff and Iranian Foreign Minister Abbas Araghchi “briefly spoke in the presence of the Omani foreign minister” at the end of the talks, marking a direct interactions between the two nations locked in decades of tensions.

American officials did not immediately acknowledge the Iranian reports, which Tehran likely speeded out to its public ahead of a possible Trump post on a social media. But declaring that the two sides spoke face-to-face — even if briefly — suggests the negotiations went well.

The talks began at around 3:30 p.m. local. The two sides spoke for over two hours at a location in the outskirts of Oman, ending the talks around 5:50 p.m. local time. The convoy believed to be carrying Witkoff returned to Muscat, the capital of Oman, before disappearing into traffic around a neighborhood that is home to the U.S. Embassy.

The stakes of the negotiations couldn’t be higher for the two nations closing in on half a century of enmity. Trump repeatedly has threatened to unleash airstrikes targeting Iran’s nuclear program if a deal isn’t reached. Iranian officials increasingly warn that they could pursue a nuclear weapon with their stockpile of uranium enriched to near weapons-grade levels.

AP journalists saw a convoy believed to be carrying Witkoff leave the Omani Foreign Ministry on Saturday afternoon and then speed off into the outskirts of Muscat. The convoy went into a compound and a few minutes later, Iranian Foreign Ministry spokesman Esmail Baghaei wrote on the social platform X that the “indirect talks” had begun.

“These talks will be held at a location planned by the Omani host, with representatives of the Islamic Republic of Iran and the United States seated in the halls and sides, conveying their points of view and positions to each other through the Omani Foreign Minister,” Baghaei wrote.

About an hour later, Baghaei appeared on Iranian state television and acknowledged the talks had been going on all that time.

“The objective of the Islamic Republic of Iran is very clear — we have only one goal, and that is to safeguard Iran’s national interests,” he said. “We are giving a genuine and honest opportunity to diplomacy, so that through dialogue, we can move forward on the nuclear issue on one hand, and more importantly for us, the lifting of sanctions.”

Baghaei added: “Look, this is just a beginning. So it is natural that, at this stage, both sides will present their foundational positions through the Omani mediator. Therefore, we do not expect this round of negotiations to be lengthy.”

Araghchi earlier spoke to Iranian journalists.

“If there is sufficient will on both sides, we will decide on a timetable. But it is still too early to talk about that,” Araghchi said, in an audio clip published by IRNA. “What is clear now is that the negotiations are indirect, and in our view only on the nuclear issue, and will be conducted with the necessary will to reach an agreement that is on an equal footing and leads to securing the national interests of the Iranian people.”

Trump and Witkoff both had described the talks as being “direct.”

“I think our position begins with dismantlement of your program. That is our position today,” Witkoff told The Wall Street Journal before his trip. “That doesn’t mean, by the way, that at the margin we’re not going to find other ways to find compromise between the two countries.”

He added: “Where our red line will be, there can’t be weaponization of your nuclear capability,”

While the U.S. side can offer sanctions relief for Iran’s beleaguered economy, it remains unclear just how much Iran will be willing to concede. Under the 2015 nuclear deal, Iran could only maintain a small stockpile of uranium enriched to 3.67%. Today, Tehran’s stockpile could allow it to build multiple nuclear weapons if it so chooses and it has some material enriched up to 60%, a short, technical step away from weapons-grade levels. Judging from negotiations since Trump unilaterally withdrew America from the deal in 2018, Iran will likely ask to keep enriching uranium up to at least 20%.

One thing it won’t do is give up its program entirely. That makes the proposal of Israeli Prime Minister Benjamin Netanyahu of a so-called Libyan solution — “you go in, blow up the facilities, dismantle all the equipment, under American supervision, American execution” — unworkable.

Iranians including Ayatollah Ali Khamenei have held up what ultimately happened to the late Libyan dictator Moammar Gadhafi, who was killed with his own gun by rebels in the country’s 2011 Arab Spring uprising, as a warning about what can happen when you trust the United States.

Associated Press writer Amir Vahdat in Tehran, Iran, contributed to this report.

BRUSSELS (AP) — The European Union’s executive commission said Thursday it will put trade retaliation measures on hold for 90 days to match President Donald Trump’s pause on his sweeping new tariffs and leave room for a negotiated solution.

European Commission President Ursula von der Leyen said that the commission, which handles trade for the bloc’s 27 member countries, “took note of the announcement by President Trump.”

New tariffs on 20.9 billion euros ($23 billion) of US goods will be put on hold for 90 days because “we want to give negotiations a chance,” she said in a statement.

But she warned: “If negotiations are not satisfactory, our countermeasures will kick in.”

Trump imposed a 20% levy on goods from the EU as part of his onslaught of tariffs of 10% and upward against global trading partners but said Wednesday he will pause them for 90 days to give countries a chance to negotiate solutions to U.S. trade concerns.

Countries subject to the pause will face Trump’s 10% baseline tariff.

Before Trump’s announcement, EU member countries voted to approve a set of retaliatory tariffs on $23 billion in goods in response to his 25% tariffs on imported steel and aluminum that took effect in March. The EU, the largest trading partner of the U.S., described them as “unjustified and damaging.”

The EU tariffs were set to go into effect in stages, some on April 15 and others on May 15 and Dec. 1. The EU commission didn’t immediately provide a list of the goods.

Members of the EU — the world’s largest trading bloc — have said they prefer a negotiated deal to resolve a trade war that damages the economies on both sides. The bloc’s top trade official has shuttled between Brussels and Washington for weeks trying to head off a conflict. The EU has offered Trump a “zero for zero” deal in which both sides would eliminate tariffs on industrial goods including autos. Trump has said that’s not enough to answer U.S. concerns and raised the possibility of Europe buying large additional amounts of U.S. liquefied natural gas.

The targeted goods are a tiny fraction of the 1.6 trillion euros ($1.8 trillion) in U.S.-EU annual trade. Some 4.4 billion euros in goods and services crosses the Atlantic each day in what the European Commission calls “the most important commercial relationship in the world.”

The EU has targeted smaller lists of goods in hopes of exerting political pressure and avoiding economic damage from a wider escalation of tit-for-tat tariffs.

The EU is also working on a further set of countermeasures in response to Trump’s blanket 20% tariff on all European goods, now suspended. That could include measures aimed at U.S. tech companies and the services sector as well as trade in goods.

Still, von der Leyen said that Europe intends to diversify its trade partnerships.

She said that the EU will continue “engaging with countries that account for 87% of global trade and share our commitment to a free and open exchange of goods, services, and ideas,” and to lift barriers to commerce inside its own single market.

“Together, Europeans will emerge stronger from this crisis,” von der Leyen said.

McHugh reported from Frankfurt, Germany

TAIPEI, Taiwan (AP) — China is reaching out to other nations as the U.S. layers on more tariffs in what appears to be an attempt to form a united front to compel Washington to retreat. Days into the effort, it’s meeting only partial success with many countries unwilling to ally with the main target of President Donald Trump’s trade war.

Facing the cratering of global markets, Trump on Wednesday backed off his tariffs on most nations for 90 days, saying countries were lining up to negotiate more favorable conditions.

China has refused to seek talks, saying it would “fight to the end” in a tariff war, prompting Trump to further jack up the tax rate on Chinese imports to 145%. It was initially announced on Wednesday as 125%, but that did not include a 20% tariff on China tied to its role in fentanyl production.

China has retaliated with tariffs on U.S. goods of 84%, which took effect Thursday.

Trump’s move was seemingly an attempt to narrow what had been an unprecedented trade war between the U.S. and most of the world to a showdown between the U.S. and China.

“A just cause receives support from many,” Foreign Ministry spokesperson Lin Jian said at a daily briefing on Thursday. “The U.S. cannot win the support of the people and will end in failure.”

China has thus far focused on Europe, with a phone call between Premier Li Qiang and European Commission President Ursula von der Leyen “sending a positive message to the outside world.”

“China is willing to work with the EU to jointly implement the important consensus reached by the leaders of China and the EU, strengthen communication and exchanges, and deepen China-EU trade, investment and industrial cooperation,” the official Xinhua News Agency reported.

That was followed by a video conference between Chinese Commerce Minister Wang Wentao and EU Commissioner for Trade and Economic Security Maroš Šefčović on Tuesday to discuss the U.S. “reciprocal tariffs.”

Wang said the tariffs “seriously infringe upon the legitimate interests of all countries, seriously violate WTO rules, seriously damage the rules-based multilateral trading system, and seriously impact the stability of the global economic order,” Xinhua said.

“It is a typical act of unilateralism, protectionism and economic bullying,” Wang was quoted as saying.

“China is willing to resolve differences through consultation and negotiation, but if the U.S. insists on its own way, China will fight to the end,” Wang said.

Wang has also spoken with the 10-member Association of Southeast Asian Nations, while Li, the premier, has met with business leaders. China has “already made a full evaluation and is prepared to deal with all kinds of uncertainties, and will introduce incremental policies according to the needs of the situation,” Xinhua quoted Li as saying.

In Hong Kong, the spokesperson for the local office of China’s Foreign Ministry reiterated Beijing’s unwillingness to negotiate with the U.S. under current conditions.

“We must solemnly tell the U.S.: a tariff-wielding barbarian who attempts to force countries to call and beg for mercy can never expect that call from China,” Huang Jingrui wrote in an op-ed appearing in the South China Morning Post.

If the U.S. is truly sincere about starting a dialogue with China, it should “immediately rectify its wrong practices and adopt the right attitude of equality, respect and mutual benefit,” Huang wrote.

Despite their unhappiness with Washington, not all countries are interested in linking up with China, especially those with a history of disputes with Beijing.

“We speak for ourselves, and Australia’s position is that free and fair trade is a good thing,” Australian Prime Minister Anthony Albanese told reporters. “We engage with all countries, but we stand up for Australia’s national interest and we stand on our own two feet.”

China imposed a series of official and unofficial trade barriers against Australia in 2020 after the government angered Beijing by calling for an independent inquiry into the COVID-19 pandemic.

India has also reportedly turned down a Chinese call for cooperation, and Russia, typically seen as China’s closest geopolitical partner, has been left out of the Trump tariffs altogether. Taiwanese Foreign Minister Lin Chia-lung said on Wednesday that his government is preparing for talks on tariffs with the U.S.

The U.S. imposed a 32% tariff on imports from Taiwan, a close trading and security partner. Taiwan produces most of the high-performing computer chips craved by the U.S. and others and has long enjoyed a trade surplus with Washington.

Yet, Southeast Asian nations such as Vietnam and Cambodia find themselves in a particular bind. They benefited when factories moved to their countries from China due to rising costs. They are being hit by punishing tariffs but have few buyers outside the U.S. and are already operating on razor-thin margins.

Trump had previously denied contemplating a pause, but the drama over his tariffs will continue as the administration prepares to engage in country-by-country negotiations. Meanwhile, tariffs will be 10% for the countries where the larger ones were paused.

It’s not clear what further steps China will take, but the Foreign Ministry’s Lin said China “will not sit idly by and let the legitimate rights and interests of the Chinese people be deprived of, nor will we allow the international trade rules and multilateral trading system to be undermined.” Non-tariff options include bans on American movies, American law firms and other trade in services.

World markets soared on Thursday, with Japan’s benchmark jumping more than 9%, as investors welcomed Trump’s decision Germany’s DAX initially gained more than 8%. It was up 7.5% at 21,141.53 a bit later, while the CAC 40 in Paris gained 7.2% to 7,360.23. Britain’s FTSE 100 surged 5.4% to 8,090.02.

However, U.S. futures edged lower and oil prices also declined. Chinese shares saw more moderate gains, given yet another jump in the tariffs each side is imposing on each others’ exports.

The future for the S&P 500 was down 0.4% while that for the Dow Jones Industrial Average edged 0.2% lower.

Associated Press reporters Rod McGuirk in Sydney and Kanis Leung in Hong Kong contributed to this report.

WASHINGTON (AP) — The tariff fight between the world’s two largest economies spiraled into greater peril Wednesday as President Donald Trump tried to narrow his global trade war into a direct — and risky — faceoff with Beijing.

As Trump reversed his larger “reciprocal” tariffs on most of the world in the face of recession fears, he nonetheless hiked his tariffs on China once again — to 125%. The move locks the strategic rivals into a deepening standoff that endangers both their economies and interests around the world. The stakes are higher than ever, as the U.S. and China are already embroiled in competition on everything from artificial intelligence to monetary policy to overall global influence.

Each nation dares the other to blink first. But the rounds of escalation are raising concerns that the window for diplomacy has narrowed even further, while the economic pain on both economies intensifies.

Behind it all, as usual, geopolitics lurks — the concerns about regional and global security that are always in play when economic relations between two of the world’s most powerful nations turn aggressive.

“When you punch the United States of America,” said Karoline Leavitt, the White House press secretary, “President Trump is going to punch back harder.”

After Beijing responded to U.S. President Donald Trump’s 34% “reciprocal” tax on China with the same 34% rate on American goods, Trump raised the tariff by another 50 percentage points, only to be met by the same tariff hike by Beijing on Wednesday morning. U.S. products going to China are now to be taxed 84%.

Hours later, Trump declared that Chinese imports to the United States would be “immediately” taxed at 125%, citing “lack of respect that China has shown to the World’s Markets.”

“At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” Trump wrote on his Truth Social platform.

Treasury Secretary Scott Bessent insisted this had been Trump’s strategy all along and that Beijing has “shown themselves to the world as the bad actors.”

While the financial markets rebounded from their deepest lows at the news that China would be facing the brunt of Trump’s wrath, the real-world prospects of the intensifying trade war with China were still set to be significant.

On Wednesday, the U.S.-China Business Council urged the two leaders to “come to the table” and talk. “Targeted tariffs to encourage China to come to the negotiating table are one thing, but these sweeping tit-for-tat tariffs are in no one’s interests. They will significantly harm the global, U.S., and Chinese economies as well as American businesses, farmers, and consumers,” the council said.

Trump has left little room to negotiate an off-ramp with China, short of that country capitulating — which would be anathema to Chinese President Xi Jinping.

“Xi will not be forced into a call,” said Sun Yun, director of the China program at the Washington-based think tank Stimson Center. Only once in recent history, she noted, has a Chinese leader phoned the United States without invitation — after the 9/11 terrorist attacks. The trade tensions, if unchecked, could spill into other domains, she warned.

Craig Singleton, the senior China fellow at another Washington-based think tank, the Foundation for Defense of Democracies, agreed that a phone call from Beijing is “unlikely in this climate.”

“Each side believes time is on its side, which raises the risk that neither moves to de-escalate until real damage is done,” he said. “This is no longer about tariffs alone. It’s a test of wills.”

Before Trump’s announcement, Bessent called it “unfortunate that the Chinese actually don’t want to come and negotiate.”

“And I can tell you that this escalation is a loser for them,” Bessent said on Fox Business Network’s “Morning with Maria” on Wednesday. “Their exports to the U.S. are five times our exports to China. So, they can raise their tariffs. But, so what?”

China has its own calculations. Its leadership, overseeing the world’s second-largest economy, has vowed not to surrender to U.S. bullying.

While Trump’s higher-than-expected tariffs caught other countries by surprise, China says it has been prepared, having learned a lesson from its previous tariff dealings during Trump’s first term. In response to Trump’s several rounds of tariff raises, Beijing has responded swiftly each time with a package of tariff and non-tariff measures.

“We have been in a trade war with the United States for eight years and have accumulated rich struggle experience,” said an editorial by the ruling party’s flagship newspaper People’s Daily, dated Monday. The newspaper assured the Chinese public that “the sky will not fall.”

“Facing the impact of U.S. tariff bullying, we possess strong resilience,” the party newspaper said, citing the country’s reduced dependence on exports to the U.S. market and new measures to boost domestic consumption.

Since Trump imposed his first round of tariffs on China in 2018, Beijing’s leaders have developed a toolkit of tariffs, import curbs, export controls, sanctions, regulatory reviews and measures to limit companies from doing business in China. All are designed to inflict pain on the U.S. economy and businesses in response to any trade move by the U.S. government.

Melanie Hart, senior director of the Global China Hub at the Atlantic Council, said Beijing is now “throwing the entire toolkit against” the United States, blacklisting companies, hitting American farmers and cutting the nation off from critical minerals.

“They have a bunker that they’ve been building for this moment,” Hart said. “They’re in the bunker. And if I’m Xi Jinping, I’m feeling a lot more comfortable than Donald Trump today.”

But People’s Daily also made it clear that Beijing remains open to talks. “Faced with volatility and extreme pressure from the United States,” it said, “we have not closed the door to negotiations.”

The country’s official Xinhua News Agency, in an editorial, insisted as well that China doesn’t want a trade war — but can fight one.

“There are no winners in a trade war,” it said. “But China is not afraid of a trade war.”

BEIJING (AP) — China said Tuesday it would “fight to the end” and take countermeasures against the United States to safeguard its own interests after President Donald Trump threatened an additional 50% tariff on Chinese imports.

The Commerce Ministry said the U.S.‘s imposition of “so-called ‘reciprocal tariffs’” on China is “completely groundless and is a typical unilateral bullying practice.”

China, the world’s second-largest economy, has taken retaliatory tariffs and the ministry hinted in its latest statement that more may be coming.

“The countermeasures China has taken are aimed at safeguarding its sovereignty, security and development interests, and maintaining the normal international trade order. They are completely legitimate,” the ministry said.

“The U.S. threat to escalate tariffs on China is a mistake on top of a mistake and once again exposes the blackmailing nature of the US. China will never accept this. If the US insists on its own way, China will fight to the end,” it added.

Trump’s threat Monday of additional tariffs on China raised fresh concerns that his drive to rebalance the global economy could intensify a financially destructive trade war. Stock markets from Tokyo to New York have become more unstable as the tariff war worsens.

Trump’s threat came after China said it would retaliate against U.S. tariffs he announced last week.

“If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump wrote on Truth Social. “Additionally, all talks with China concerning their requested meetings with us will be terminated!”

If Trump implements his new tariffs on Chinese products, U.S. tariffs on Chinese goods would reach a combined 104%. The new taxes would be on top of the 20% tariffs announced as punishment for fentanyl trafficking and his separate 34% tariffs announced last week. Not only could that increase prices for American consumers, it could also give China an incentive to flood other countries with cheaper goods and seek deeper relationships with other trading partners, particularly the European Union.

Trump frequently bragged about stock market gains during his first term, and the threat of losses on Wall Street was viewed as a potential guardrail on risky economic policies in his second term. But that hasn’t been the case, and Trump has described days of financial pain as necessary.

“I don’t mind going through it because I see a beautiful picture at the end,” he said.

Trump officials have frequently appeared on television to make the case for his policies, but none of their explanations has calmed the markets. The only improvement came from a false report that top economic adviser Kevin Hassett said Trump was considering a pause on all tariffs except for China. Stock prices spiked before the White House denied it was true by calling the post “fake news.”

China is one of the U.S.’s top trading partners, especially for consumer goods, and the tariffs — essentially a tax on imports paid by U.S. companies — will eventually be passed on to the consumer.

European Commission President Ursula von der Leyen said the European Union would focus on trade with other countries besides the United States, saying there are “vast opportunities” elsewhere.

U.S. total goods trade with China were an estimated $582 billion in 2024, making it the top trader in goods with the U.S. The 2024 deficit with China in goods and services trade was between $263 billion and $295 billion.

In Hong Kong, where stocks were slightly higher Tuesday, Chief Executive John Lee blasted the latest U.S. tariffs as “bullying,” saying the “ruthless behavior” has damaged global and multilateral trade and brought great risks and uncertainties to the world.

Lee said the city would link its economy closer to China’s development, sign more free trade agreements, attract more foreign companies and capital to Hong Kong, and support local enterprises in coping with the impact of the tariffs.

Associated Press writers Chris Megerian and Josh Boak in Washington, Christopher Bodeen in Taipei, Taiwan, and Kanis Leung in Hong Kong contributed to this report.

NEW YORK (AP) — Stock markets worldwide are careening even lower Friday after China matched President Donald Trump’s big raise in tariffs in an escalating trade war. Not even a better-than-expected report on the U.S. job market, which is usually the economic highlight of each month, was enough to stop the slide.

The S&P 500 was down 5% in morning trading, coming off its worst day since COVID wrecked the global economy in 2020. The Dow Jones Industrial Average was down 1,656 points, or 4.2%, as of 10:50 a.m. Eastern time, and the Nasdaq composite was 5.5% lower.

So far there are few, if any winners, in financial markets from the trade war. European stocks saw some of the day’s biggest losses, with indexes sinking roughly 5%. The price of crude oil tumbled to its lowest level since 2021. Other basic building blocks for economic growth, such as copper, also saw prices slide on worries the trade war will weaken the global economy.

China’s response to U.S. tariffs caused an immediate acceleration of losses in markets worldwide. The Commerce Ministry in Beijing said it would respond to the 34% tariffs imposed by the U.S. on imports from China by imposing a 34% tariff on imports of all U.S. products beginning April 10. The United States and China are the world’s two largest economies.

Markets briefly recovered some of their losses after the release of Friday morning’s U.S. jobs report, which said employers accelerated their hiring by more last month than economists expected. It’s the latest signal that the U.S. job market has remained relatively solid through the start of 2025, and it’s been a linchpin keeping the U.S. economy out of a recession.

But that jobs data was backward looking, and the fear hitting financial markets is about what’s to come.

“The world has changed, and the economic conditions have changed,” said Rick Rieder, chief investment officer of global fixed income at BlackRock.

The central question is: Will the trade war cause a global recession? If it does, stock prices will likely need to come down even more than they have already. The S&P 500 is down roughly 16% from its record set in February.

Much will depend on how long Trump’s tariffs stick and what kind of retaliations other countries deliver. Some of Wall Street is holding onto hope that Trump will lower the tariffs after prying out some “wins” from other countries following negotiations. Otherwise, many say a recession looks likely.

For his part, Trump has said Americans may feel “some pain” because of tariffs, but he has also said the long-term goals, including getting more manufacturing jobs back to the United States, are worth it. On Thursday, he likened the situation to a medical operation, where the U.S. economy is the patient.

“For investors looking at their portfolios, it could have felt like an operation performed without anesthesia,” said Brian Jacobsen, chief economist at Annex Wealth Management.

But Jacobsen also said the next surprise for investors could be how quickly tariffs get negotiated down. “The speed of recovery will depend on how, and how quickly, officials negotiate,” he said.

Vietnam said its deputy prime minister would visit the U.S. for talks on trade, while the head of the European Commission has vowed to fight back. Others have said they were hoping to negotiate with the Trump administration for relief.

Trump criticized China’s retaliation on Friday, saying on his Truth Social platform that “CHINA PLAYED IT WRONG, THEY PANICKED – THE ONE THING THEY CANNOT AFFORD TO DO!”

On Wall Street, stocks of companies that do lots of business in China fell to some of the sharpest losses.

DuPont dropped 16.8% after China said its regulators are launching an anti-trust investigation into DuPont China group, a subsidiary of the chemical giant. It’s one of several measures targeting American companies and in retaliation for the U.S. tariffs.

GE Healthcare got 14.3% of its revenue last year from the China region, and it fell 13.3%. United Airlines, which is in an alliance with Air China and got a third of its passenger revenue last year from flights across the Pacific, lost 12.6%.

In the bond market, Treasury yields continued their sharp drop as worries rise about the strength of the U.S. economy, along with expectations for the Federal Reserve to cut interest rates to cushion it.

The yield on the 10-year Treasury tumbled to 3.90% from 4.06% late Thursday and from roughly 4.80% early this year. That’s a major move for the bond market.

The Fed could cut its main interest rate to relax the pressure on the economy, as it was doing late last year before pausing in 2025. But it may have less freedom to move than it would like.

Lower rates can goose the economy by making it easier for U.S. companies and households to borrow and spend. But they can also push upward on inflation. And worries are already worsening about that because of tariffs, with U.S. households in particular bracing for sharp increases to their bills.

In stock markets abroad, Germany’s DAX lost 5.2%, France’s CAC 40 dropped 4.6% and Japan’s Nikkei 225 fell 2.8%.

AP Writers Jiang Junzhe, Huizhong Wu and Matt Ott contributed.

BANGKOK (AP) — Asian markets and U.S. futures tumbled Thursday following U.S. President Donald Trump’s announcement of big increases in tariffs on imports of goods from around the world.

Tokyo’s Nikkei 225 index dipped more than 3.4%, but recovered slightly. It was down 2.9% at 34,699.52.

Trump said he was imposing a 24% “reciprocal tariff” on Japan, one of the United States’ closest allies.

South Korea, also an ally, was hit with a 25% tariff. Its benchmark Kospi slumped 1.9% soon after the opening, to 2,459.30.

In Australia, the S&P/ASX 200 fell 1.8% to 7,793.10.

The future for the S&P 500 dropped 3% while that for the Dow Jones Industrial Average lost 2%, auguring potential losses when U.S. markets reopen on Thursday.

On Wednesday, U.S. stocks whipped through another dizzying day before Trump’s unveiling of his “Liberation Day” tariffs.

The S&P 500 rose 0.7% to 5,670.97 after careening between an earlier loss of 1.1% and a later gain of 1.1%. It’s had a pattern this week of opening with sharp drops only to finish the day higher.

The Dow Jones Industrial Average added 0.6% to 42,225.32, and the Nasdaq composite climbed 0.9% to 17,601.05.

Elon Musk’s Tesla helped knock the market around after initially falling more than 6% following a report that it delivered fewer electric vehicles in the first three months of the year than it did in last year’s first quarter. It closed 5.3% higher.

Tesla is one of Wall Street’s most influential stocks because of its immense size, and it’s faced backlash due to anger about CEO Elon Musk’s leading the U.S. government’s efforts to cut spending.

On Wall Street, Newsmax fell 77.5% in its third day of trading to give back some of the meteoric gains from its debut at the start of the week. It surged 735% Monday and then another 179% on Tuesday.

Several airlines, meanwhile, flew higher to recover some of the sharp losses taken recently on worries that tariff-weary customers will fly less. United Airlines climbed 4.6%.

Financial markets around the world have broadly been shaky lately because of uncertainty about Trump’s trade war. He has said he wants tariffs to make the global system more fair and to bring manufacturing jobs back to the United States from other countries. But tariffs also threaten to grind down growth for the U.S. and other economies, while worsening inflation when it may be stuck above the Federal Reserve’s 2% target.

After the U.S. market closed, Trump declared a 10% baseline tax on imports from all countries and higher tariff rates on dozens of nations that run trade surpluses with the United States. The president held up a chart while speaking at the White House, showing the United States would charge a 34% tax on imports from China, a 20% tax on imports from the European Union, and 32% on Taiwan.

Trump earlier announced 25% tariffs on auto imports; levies against China, Canada and Mexico; and expanded tariffs on steel and aluminum. Trump has also put tariffs against countries that import oil from Venezuela and plans separate import taxes on pharmaceutical drugs, lumber, copper and computer chips.

Treasury yields swung in the bond market, echoing the indecision seen in the stock market.

The yield on the 10-year Treasury fell as low as 4.11% in the morning from 4.17% late Tuesday and from roughly 4.80% early this year. But it later rose to 4.18%. Higher yields can indicate higher expectations for the economy or for inflation.

In other dealings early Thursday, U.S. benchmark crude plunged $2.08 to $69.63 per barrel. Brent crude, the international standard, gave up $2.06 to $72.89 per barrel.

The dollar fell to 148.07 Japanese yen from 149.28 yen. The euro rose to $1.0897 from $1.0855.

AP Business Writers Stan Choe and Matt Ott contributed.

MEXICO CITY (AP) — The sweeping new tariffs announced Wednesday by U.S. President Donald Trump were met initially with measured reactions from key trading partners, highlighting the lack of appetite for a full-fledged trade war.

The fact that the tariffs fell most heavily on parts of the world sleeping through the night appeared to at least temporarily delay some of the potential outrage.

Trump presented the import taxes, which he calls “reciprocal tariffs” and range from 10% to 49%, in the simplest terms: the U.S. would do to its trading partners what he said they had been doing to the U.S. for decades.

“Taxpayers have been ripped off for more than 50 years,” he said. “But it is not going to happen anymore.”

The president promised that “Jobs and factories will come roaring back into our country.” He framed it not just as an economic issue, but a question of national security that threatens “our very way of life.”

Shortly after Trump’s announcement, the British government said the United States remains the U.K.’s “closest ally.”

Business Secretary Jonathan Reynolds said the U.K. hoped to strike a trade deal to “mitigate the impact” of the 10% tariffs on British goods announced by Trump.

“Nobody wants a trade war and our intention remains to secure a deal,” said Reynolds. “But nothing is off the table and the government will do everything necessary to defend the U.K.’s national interest.”

British officials have said they will not immediately retaliate, an approach backed by the Confederation of British Industry, a major business group.

Italy’s conservative Premier Giorgia Meloni described the new 20% tariffs against the European Union as “wrong,” saying they benefit neither side.

“We will do everything we can to work towards an agreement with the United States, with the aim of avoiding a trade war that would inevitably weaken the West in favor of other global players,” Meloni said in a Facebook post. “In any case, as always, we will act in the interest of Italy and its economy, also by discussing with other European partners,” she added.

Some countries took issue with the White House’s calculations.

Australian Prime Minister Anthony Albanese said the U.S. tariffs imposed on his country were totally unwarranted, but Australia will not retaliate.

“President Trump referred to reciprocal tariffs. A reciprocal tariff would be zero, not 10%,” said Albanese. The U.S. and Australia have a free trade agreement and the U.S. has a $2-to-$1 trade surplus with Australia. “The administration’s tariffs have no basis in logic and they go against the basis of our two nations’ partnership. This is not the act of a friend.”

Trump said the United States bought $3 billion of Australian beef last year, but Australia would not accept U.S. beef imports. Albanese said the ban on raw U.S. beef was for biosecurity reasons.

New Zealand also took issue with Trump’s tariff logic.

Trade minister Todd McClay rejected the figure on the administration’s chart about the tariffs New Zealand imposes and said he had asked his country’s officials to clarify it.

“We don’t have a 20% tariff rate,” he said, adding that New Zealand was “a very low tariff regime” and the correct figure was below the 10% baseline rate applied by the U.S. to all countries.

“We won’t be looking to retaliate. That would put up prices on New Zealand consumers and it would be inflationary,” he said.

Spared for the moment from the latest round of tariffs were Mexico and Canada, so far as goods that already qualified under their free trade agreement with the United States. Yet, the previously announced 25% tariffs on auto imports were scheduled to take effect at midnight.

Mexico President Claudia Sheinbaum said Wednesday she would wait to take action on Thursday when it was clear how Trump’s announcement would affect Mexico.

“It’s not a question of if you impose tariffs on me, I’m going to impose tariffs on you,” she said in a news briefing Wednesday morning. “Our interest is in strengthening the Mexican economy.”

Canada had imposed retaliatory tariffs in response to the 25% tariffs that Trump tied to the trafficking of fentanyl. The European Union, in response to the steel and aluminum tariffs, imposed taxes on 26 billion euros’ worth ($28 billion) of U.S. goods, including bourbon, prompting Trump to threaten a 200% tariff on European alcohol.

As Trump read down the list of countries that would be targeted Wednesday, he repeatedly said he didn’t blame them for the tariffs and non-tariff barriers they imposed to protect their own nations’ businesses. “But we’re doing the same thing right now,” he said.

“In the face of unrelenting economic warfare, the United States can no longer continue with a policy of unilateral economic surrender,” Trump said.

Speaking from a business forum in India, Chilean President Gabriel Boric warned that such measures, in addition to causing uncertainty, challenge the “mutually agreed rules” and the “principles that govern international trade.”

Ultimately, Trump announced Chile would face the baseline reciprocal tariff of 10%. The U.S. is Chile’s second most important trading partner after China.

Analysts say there’s little to be gained from an all-out trade war, neither in the United States or in other countries.

“Once again, Trump has put Europe at a crossroads,” said Matteo Villa, senior analyst at Italy’s Institute for International Political Studies.

“If Trump really imposes high tariffs, Europe will have to respond, but the paradox is that the EU would be better off doing nothing,” he added.

Villa also noted that retaliation would certainly be a further “blow” to the United States, but it would hurt Europe even more, as the EU bloc depends more on exports to the U.S. than vice versa.

“On the other hand, Trump seems to understand only the language of force, and this indicates the need for a strong and immediate response,” Villa said. “Probably the hope, in Brussels, is that the response will be strong enough to induce Trump to negotiate and, soon, to backtrack.”

AP journalists around the world contributed to this story.