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BEIJING (Reuters) -China's car exports will likely face greater than forecast pressure this year as U.S. tariff hikes hit the economies of important overseas markets hard, potentially curbing consumer demand, a Chinese auto industry association said on Wednesday. China ships very few cars to the United States, which imposed a 100% tariff on imported Chinese electric vehicles under the previous administration of President Joe Biden. However, Cui Dongshu, the secretary general of the China Passenger Car Association (CPCA), said the sweeping tariffs announced by President Donald Trump last week were expected to have a major indirect impact on export sales.

US stock futures sank as Wall Street girded for President Trump's massive tariffs.

LONDON (Reuters) -Global markets were took a beating again on Wednesday as U.S. President Donald Trump's eye-watering 104% tariffs on China took effect, and a savage selloff in U.S. bonds sparked fears that foreign funds were fleeing U.S. assets. U.S. Treasuries extended losses in a sign investors are dumping even their safest assets and the dollar, a traditional safe-haven, was weaker against other major currencies. Warning signals had been flashing for a few days, as spreads between Treasury yields and swap rates in the interbank market collapsed under a weight of bond selling.

LONDON/BELGRADE (Reuters) -Serbian oil firm NIS is struggling to buy oil from traders abroad, while at home its former clients are seeking alternative fuel suppliers as pending U.S. sanctions have impacted operations, sources familiar with the matter told Reuters. NIS is majority-owned by Russia's Gazprom Neft and Gazprom and as such is one of Russia's last remaining oil assets in Europe. It is crucial to Serbia's energy security as it operates the Balkan country's only oil refinery.

The sharp rise in Treasury yields likely stems from the unwinding of basis trades and could trigger liquidity crisis, deepening the sell-off in risk assets.

“For investors, the short-term outlook calls for caution, while a further drop to $70,000–$75,000 for Bitcoin is possible if trade tensions escalate,” one trader said.

As the next leg of the rapidly escalating trade war comes into view, investors remain shell-shocked, extending a deep stock market rout and flocking to the safe-haven yen and Swiss franc, awaiting, and hoping, for some semblance of good news. At the stroke of midnight (U.S. hours), President Donald Trump's reciprocal tariffs took effect, including 104% levies on Chinese goods, keeping fears of recession alive and upending a global trading order that has persisted for decades. That has left investors scurrying for cover as the relief rally on Wednesday fizzled out and Asian stock markets were a sea of red.

News of trade negotiations with Japan stoked fresh optimism on Tuesday, but by mid afternoon, the day's huge gains had been wiped out.

Top Chinese brokerages have pledged to help steady domestic share prices in a concerted effort, the Shanghai bourse said, and scores of listed companies unveiled stock buying plans, as the local market reels from an escalating trade war. The Shanghai Stock Exchange said late on Tuesday it held a meeting with 10 brokerages to stress the importance of stabilising markets in the face of external shocks. The participants, including Citic Securities, Orient Securities and Industrial Securities, expressed optimism about China's growth prospects, and vowed to steady the market, it said in a statement.

WASHINGTON (Reuters) -In a stunning reversal, U.S. President Donald Trump said on Wednesday he would temporarily lower the hefty duties he had just imposed on dozens of countries while further ramping up pressure on China, sending U.S. stocks rocketing higher. Trump's turnabout, which came less than 24 hours after steep new tariffs kicked in on most trading partners, followed the most intense episode of financial market volatility since the early days of the COVID-19 pandemic. The upheaval erased trillions of dollars from stock markets and led to an unsettling surge in U.S. government bond yields that appeared to catch Trump's attention.