German economic institutes on Thursday cut their growth forecast for this year to 0.1% from the 0.8% expected in September, taking into consideration initial U.S. tariffs on steel, aluminium and cars,

President Donald Trump's severe tariffs against virtually all U.S. trading partners took effect on Wednesday at 12:01 a.m. ET. Among them is a hefty 104% tariff rate on China.

U.S. stock index futures struggled on Wednesday after a heavy sell-off in the previous session, as President Donald Trump's reciprocal tariff took effect, deepening worries about their damage to the global economy.

European Commission President Ursula von der Leyen on Thursday welcomed US President Donald Trump's announcement of a pause in reciprocal tariffs.

Even by the standards of Trump’s second term, the saga that had played out over the past week left the world struggling to catch its breath.

Canadian Prime Minister Mark Carney pledged Wednesday to negotiate a “new economic and security relationship” with the US – an announcement that comes on the same day President Trump paused

Brazilian President Luiz Inacio Lula da Silva said on Wednesday that his nation will be reciprocal on tariffs announced by the United States, but noted the Latin American country will "use every word for negotiation that is in the dictionary" first.

The S&P 500 rose 9.5 percent after President Trump announced he would pause his “reciprocal” tariffs for 90 days, but economists warned that American importers were not out of danger. Data delayed at least 15 minutes Source: FactSet By The New York Times Alan Rappeport Ana Swanson Tony Romm and Joe Rennison Stocks soared on Wednesday after President Trump abruptly announced he would back down on his “reciprocal” tariffs for 90 days, with the S&P 500 rising 9.5 percent — its sharpest single-day gain since October 2008. Wall Street’s gleeful embrace of the policy reversal reflected relief that Mr. Trump would not follow through with most of his plans for the tariffs, which had sent markets into a tailspin and threatened to upend global trade. While many countries would have their tariffs reduced, Mr. Trump said the relief would not extend to China, one of America’s biggest trading partners, ensuring that many American importers were not out of danger. Mr. Trump announced that he would instead raise tariffs on its exports to 125 percent after Beijing announced a new round of retaliation. The turnabout, which came just days after Mr. Trump declared on social media that he would never change his tariff policies, temporarily calmed the fears of economists who had expressed concerns that the United States might be careening toward a recession of its own making. Karoline Leavitt, the White House press secretary, said the tariff rate for most countries would be brought down to 10 percent. In announcing the pause, the White House repeatedly tried to suggest it was part of a premeditated strategy. Ms. Leavitt accused reporters of having “failed to see what President Trump is doing here,” and Scott Bessent, the Treasury secretary, said it was Mr. Trump’s “strategy all along.” But even as the S&P 500 soared, the index was still down 11.2 percent below its recent high, in February. The abrupt change in course came amid a sell-off in U.S. bonds, which are generally safer investments, and after days of deep losses in financial markets around the globe. Mr. Trump himself acknowledged that his decision was made in response to the market turmoil, telling reporters Wednesday afternoon that “you have to be flexible,” and that “over the last few days it looked pretty glum.” The reversal followed another tumultuous day. Before the pivot, Mr. Trump’s latest tariffs had hit nearly all U.S. trading partners, with Beijing offering the starkest response — a total levy of 84 percent on American-made products. That left American companies that import from China still on edge. “Respite? Further economic suicide?” asked Peter Boockvar, chief investment officer of Bleakley Financial Group. “It will all depend on where you source product from, of course, and unfortunately about $450 billion is still being imported from China.” Here’s what else to know: Defending tariffs: In Washington, Mr. Trump’s trade representative, Jamieson Greer, told a congressional committee that the president was right to label the United States’ trade deficit a national emergency, calling it “a manifestation of the loss of the nation’s ability to make, to grow and to build.” Many economists have criticized Mr. Trump’s focus on trade deficits, arguing that they are a poor metric for judging the quality of a trade relationship. European Union: Before the pause was announced, European Union member states voted to approve counter-tariffs against the United States that would take effect on Tuesday, its first response to Mr. Trump’s levies. Documents showed that duties of 25 percent would be applied to a wide range of goods imported from the United States, including products as varied as corn and plate glass. Bonds under pressure: A sharp sell-off in U.S. government bond markets showed concerns about the fallout of a trade war. Yields rise when investors sell bonds — pulling down the price of bonds — which can reflect worries about inflation, shifts away from U.S. dollar assets or a need for investors to raise cash to cover losses on other trades. Rising yields push up the cost of borrowing for mortgages, credit cards, business loans and many other rates. The 10-year U.S. Treasury yield jumped to around 4.4 percent, up from below 4 percent at the start of the week. Oil prices tumble: U.S. oil prices fell to about $56 a barrel on Wednesday morning, the lowest level in more than four years. The slide in crude prices signals deteriorating confidence in the strength of the economy and has spooked U.S. oil executives, many of whom had backed Mr. Trump. After the tariffs were paused, the prices climbed to more than $62. Asian industry: In commercial and industrial hubs across Asia, businesses grappled with the effects of the levies. For some companies, U.S. tariffs have had the unexpected effect of making China a more appealing place to produce in and buy from, as heavy tariffs on other Asian countries have eliminated some motivation to set up shops there. Howard Lutnick, the secretary of commerce, told reporters today that a move by Canada to retaliate against President Trump’s tariffs would be unwise. Having watched how it went with China, which is now facing 125 percent tariffs after announcing a new round of retaliation, that “would be a really, really bad choice,” he said. Europe had also announced some retaliatory tariffs, Lutnick said, but they don’t start for a couple of weeks. After raising tariffs on China to 125 percent, President Trump said he did not think he would need to raise them further and that he expected Xi Jinping, China’s president, to reach out about a deal. “I can’t imagine it. I don’t think we’ll have to do it more,” he said of additional tariffs on China. “No, I don’t see that.” Note: Goods from Canada and Mexico that fall under the U.S.M.C.A. trade pact — the agreement that replaced NAFTA — are not subject to tariffs that took effect in March targeting those countries. As of April 9, so-called reciprocal tariffs have been paused for 90 days except for goods from China. The chaos in the markets has boosted financial news on networks like Fox Business and CNBC.Credit...Karsten Moran for The New York Times The plunge in the financial markets has caused a boost for financial news. Viewership of Fox Business and CNBC, the cable news channels devoted to corporate and economic coverage, has soared over the past week as Americans seek clarity on the current market duress. Fox Business’s audience between April 2, when President Trump announced worldwide tariffs, and Monday was up 25 percent compared with the week before, and up 35 percent compared with its average audience last year, according to Nielsen. (Those figures reflect programming between 9:30 a.m. Eastern, when the U.S. market opens, and 5 p.m., the peak hours for business cable news.) CNBC saw a spike during that period, too. The channel’s average viewership from 9 a.m. to 6 p.m. on Monday was up 75 percent compared with its average weekday audience since November, Nielsen said. (Fox Business is slightly ahead of CNBC in overall viewers this year, according to Nielsen.) Investors have closely tracked the networks’ live interviews with prominent business figures, including a Wednesday appearance on Fox Business by Jamie Dimon, JPMorgan Chase’s chief executive, with the anchor Maria Bartiromo. Mr. Dimon’s interview was scheduled in advance of the April 2 announcement of Mr. Trump’s tariffs. And viewers have watched as the networks’ anchors have scrambled on air to react in real time to dizzying market machinations. On Wednesday, Mr. Trump’s abrupt announcement on Truth Social that he had paused many global tariffs sent stocks soaring. “Are the numbers I’m seeing on my screen correct here for the Dow?” asked the CNBC anchor Kelly Evans in the minutes after Mr. Trump’s post, as stock indexes started surging. “Wow. Our charts can’t even keep up with how quickly these numerical moves are happening.” “This is something, certainly, we’ve been talking about for a period of time,” President Trump said of his decision to pause his tariffs. Trump and his aides had maintained for days that he would institute no such delay to his tariffs. “We don’t want to hurt countries that don’t need to be hurt,” he told reporters. “Investors should brace for more market volatility in the coming weeks and months as Trump’s trade policy becomes more coherent,” said Michael Arone, a chief investment strategist at State Street Global Advisors. “The trade war may not be over, but at least for today investors have won the battle.” Earlier today, the European Union approved its first retaliation measures targeting the United States over its tariffs, shortly before President Trump announced his pause. “That’s bad timing for them, that’s bad timing,” Trump said in the Oval Office when asked about the matter and his threat to punish any foreign powers that retaliate. But Howard Lutnick, the commerce secretary, followed up to say the European Union had set a later date for implementation, adding: “Our expectation is it’s going to be later still.” Trump replied: “I’m glad that they held back.” Highlighting the erratic trading conditions, a raft of stocks listed on the Nasdaq hit market speed bumps today and were halted after lurching higher — a common practice to prevent rapid changes in a stock or stock index’s price from getting out of control. President Trump, speaking in the Oval Office just now, said that he still intended to move forward with other new tariffs, including on pharmaceutical drugs and foreign steel manufacturers. Trump said last night that pharmaceutical tariffs would be announced “very shortly.” The White House sent out some clarifications on the tariffs. It said tariffs on Canada and Mexico remain unchanged, including the exemption for goods trading under the U.S.-Mexico-Canada Agreement. The baseline tariff of 10 percent did not go into effect on Canada and Mexico on April 5 and neither country is getting the 10 percent baseline now. Officials indicated earlier today that the 10 percent universal tariff included Canada and Mexico. Omair Sharif, the founder of Inflation Insights, a firm that tracks the precise movements of prices across industries, says “the increase to 125 percent on Chinese imports largely offsets the lower tariffs on other nations and leads to little change in the near-term inflation outlook.” His outlook, to be clear, is the suboptimal scenario in which inflation picks up even as growth slows in the coming months. It was the S&P 500’s sharpest gain since October 2008, when stocks rose dramatically as investors anticipated central bank rate cuts in the wake of the global financial crisis. The S&P 500 soared more than 9 percent after the Trump administration rolled back some of its steepest tariffs announced last week. The gain helped reduce the sharp losses for the index over recent days. To add to the uncertainty, the president said he might consider exempting some U.S. companies from the tariffs over the 90-day pause period. He said his thinking on this would be made “instinctively.” Diane Swonk, the chief economist at KPMG and one of the many business economists who spent many hours calculating the impact of Trump’s maximalist tariff plan that went into effect at midnight only to have the 90-day pause on them announced today, didn’t mince words voicing her frustration. “This is nuts. Damage done. Market relief is a headfake, unless the administration makes a major course correction,” she argued, adding, “Uncertainty is its own tax on the economy.” “Over the last few days, it looked pretty glum,” Trump said, acknowledging how much markets had fallen since he announced his tariff plan. It’s worth noting that only an hour or so ago, Scott Bessent, the Treasury secretary, stood in front of the White House and said that the reversal on tariffs was the president’s strategy “all along.” Now Trump himself is saying that he made the decision in response to the market turmoil. Days ago, Trump struck a defiant note on his tariffs, proclaiming at one point on Truth Social: “MY POLICIES WILL NEVER CHANGE.” Today, after pausing those tariffs, his message is very different. “You have to be flexible,” he told reporters at the White House. Asked why he decided on a pause, President Trump says, “Well, I thought that people were jumping a little bit out of line. They were getting yippy. They were getting a little bit afraid.” Wendong Zhang, an assistant professor of applied economics and policy at Cornell, pointed out that the 125 percent tariff on Chinese goods would still have enormous repercussions for the American economy because “many products that the U.S. imports are predominantly from China,” including 73 percent of smartphones, 78 percent of laptops, 87 percent of video game consoles and 77 percent of toys. “Resourcing from other countries will take time and result in much higher costs,” Zhang said. Even after the rally today, the S&P 500 remains roughly 12 percent below its February peak. It was also the index’s worst start to a presidential term since the dot com bubble burst at the start of 2001. One reversal caused another. The economics research team at Goldman Sachs said in a note released at 2:10 p.m. Eastern time that, as a result of President Trump’s announcement of a 90-day pause on global “reciprocal” tariffs, it was no longer forecasting a recession: “We are reverting to our previous non-recession baseline forecast with G.D.P. growth of 0.5 percent and a 45 percent probability of recession.” That still amounts to a pretty dreary forecast for growth and near split-odds of a downturn. But the shift showed that economists on Wall Street, not just the traders, were being whipsawed by the hourly zigzag of tariff events. Share of automakers rose sharply even though 25 percent tariffs on imported cars remained in place. Tesla shares were up 19 percent in afternoon trading while Ford and General Motors were both up about 8 percent. Investors may be betting that carmakers will also get a reprieve from the Trump administration. For the Wall Street analysts who attended the event in Dallas on Wednesday, tariffs were top of mind.Credit...Jae C. Hong/Associated Press The timing was a bit awkward. Walmart’s investor event — which happens every two years and aims to showcase the company’s strengths and strategy for growth — also happened to fall on the same day that U.S.-imposed tariffs went into effect worldwide and a trade war heated up. As the largest retailer in the United States, Walmart relies on suppliers from around the world. And for the Wall Street analysts who attended the event in Dallas on Wednesday, tariffs were top of mind. Doug McMillon, Walmart’s chief executive, acknowledged the uncertainty. In response to one of several questions from analysts about tariffs, he said: “There’s so many variables playing out in terms of what costs are going to be, where people source from. We’re going have to manage this as we always do, daily.” Or by the minute. As the event got underway on Wednesday, the United States had imposed worldwide tariffs, including a levy of 104 percent on Chinese goods, and China quickly retaliated with 84 percent tariffs on U.S. goods. Mr. McMillon, speaking just after Beijing’s additional tariffs went into effect, said the situation was “very fluid.” In fact, not long after Mr. McMillon’s question-and-answer session with analysts, President Trump said he was pausing his worldwide reciprocal tariffs for 90 days and raising the rate on China to 125 percent. During the session, Mr. McMillon emphasized that Walmart was well placed to cope with uncertainty, having navigated “the period after 9/11, the global financial crisis, a pandemic and more recently high inflation.” Walmart’s customer base includes a large number of lower-income shoppers, who have less capacity to absorb the higher prices that the tariffs could bring. John David Rainey, Walmart’s chief financial officer, emphasized that two-thirds of what Walmart sells in the United States is made, grown or assembled domestically; the figure includes groceries, which generally have lower margins. The other third of what Walmart sells comes from all over the world, especially from China and Mexico, he said. Mr. Rainey said the tariffs had made it harder for Walmart to predict its first-quarter operating income growth. “We’re one week into this new tariff environment, and we’re still working through what this means for us,” he said. “For the current quarter, the uncertainty and decline in consumer sentiment has led to a little more sales volatility week to week and, frankly, day to day.” Walmart reiterated expectations for first-quarter sales growth of about 3 to 4 percent and said its annual sales growth guidance remained unchanged, with customers still expected to migrate toward e-commerce and delivery, key parts of Walmart’s strategy. Walmart will report its first-quarter results on May 15. President Trump has remained steadfast in his approach to tariffs.Credit...Eric Lee/The New York Times As new U.S. tariffs upended financial markets and sent foreign governments scrambling to respond, President Trump on Wednesday morning remained ebullient, posting at one point on Truth Social: “BE COOL!” “Everything is going to work out well,” he maintained amid the unfurling chaos. “The USA will be bigger and better than ever before!” For Mr. Trump, the reassurances offered a stark, split-screen contrast with the pandemonium stemming from his costly and widening global trade war. In the hours since he imposed his latest round of tariffs, foreign powers including China have retaliated against the United States — and economists broadly have expressed renewed alarm about the prospects for severe blowback. But Mr. Trump has continued to downplay the risks to American consumers and businesses, insisting it is all part of his plan. In a post on Truth Social, he argued it was actually a “GREAT time to move your COMPANY into the United States of America,” adding: “DON’T WAIT, DO IT NOW!” When financial markets began to whipsaw — and a sell-off in the U.S. bond market deepened — the president chose to portray the uncertainty and chaos as an opportunity. “THIS IS A GREAT TIME TO BUY!!!” he posted on the site later Wednesday morning. The president also tried to refocus attention on his plan to extend a set of soon-expiring tax cuts on individuals and businesses, which remains snarled in the House and Senate because of disagreements within Republican ranks. “Republicans, it is more important now, than ever, that we pass THE ONE, BIG, BEAUTIFUL BILL,” Mr. Trump said in another of his posts. “The USA will Soar like never before!!!” For days, Mr. Trump and his top aides had foreshadowed the chaos and confusion now playing out across the global financial system. The president repeatedly had described the U.S. economy in medical terms, saying the nation was “sick” and needed a painful yet necessary corrective to boost American manufacturing and generate new revenue. Economists have told a different story, warning that the president’s steep new taxes on foreign exports could curtail growth and result in price increases for American consumers, ultimately raising the odds of a U.S. recession. Even some Republicans have grown increasingly alarmed with Mr. Trump’s trade strategy, with a handful signing on to new legislation that would limit his tariff authorities. But Mr. Trump has remained steadfast in his approach, as administration officials estimated this week that more than 70 countries had reached out to Washington in the hopes of striking a trade deal. “I know what the hell I’m doing,” the president told Republicans on Tuesday. “Tariffs need to be used like a scalpel, not a hammer,” Gov. Gretchen Whitmer of Michigan said on Wednesday in Washington. “Unfortunately, it’s unclear how this is going to strategically benefit the American economy or the American consumer.”Credit...Maansi Srivastava for The New York Times Gov. Gretchen Whitmer of Michigan, one of the Democratic Party’s most prominent state leaders, warned in a speech on Wednesday that President Trump’s trade war could have calamitous effects but was careful not to blame him directly as she embraced a bipartisan message. “Tariffs need to be used like a scalpel, not a hammer,” Ms. Whitmer said in Washington, at an event space near the White House. “Unfortunately, it’s unclear how this is going to strategically benefit the American economy or the American consumer. And I think that’s the big problem.” During her address and while responding to questions from Gretchen Carlson, the former Fox News anchor, Ms. Whitmer sought to thread a political needle, avoiding direct criticism of Mr. Trump or his administration — a notable contrast with the blunter attacks on the president made by other Democrats seen as potential presidential contenders in 2028. She included encouraging anecdotes about a meeting she had in Michigan with Defense Secretary Pete Hegseth as well as Vice President JD Vance’s visit to the state, even as she cautioned that the administration’s tariff policies could cause an economic collapse. Ms. Whitmer described Mr. Trump’s approach as unstable, unpredictable and damaging to corporations that rely on economic stability and steady governance. But by day’s end, she was standing in the Oval Office while Mr. Trump — who hours earlier had announced a 90-day pause on most of his reciprocal tariffs — signed executive orders, mused again falsely about a rigged 2020 election, and praised Ms. Whitmer as “a very good person.” “We’re honored to have Gretchen Whitmer from Michigan, the great state of Michigan — she’s really done an excellent job,” Mr. Trump said as Ms. Whitmer stood across the room. His kind words for her stunned numerous Democrats, who lit up their group chats with puzzled reactions to one of the party’s leading figures suddenly being singled out for presidential praise. Ms. Whitmer’s team pointed to the substance of what Mr. Trump had said — his commitment to funding for an Air National Guard base near Detroit. “The governor was surprised that she was brought into the Oval Office during President Trump’s press conference without any notice of the subject matter,” said Kaylie Hanson, a spokeswoman for Ms. Whitmer. “Her presence is not an endorsement of the actions taken or statements made at that event.” Mr. Trump and Ms. Whitmer have a history. In 2020, he dismissed her as “that woman from Michigan” during a dispute about his initial response to the coronavirus pandemic. She has since embraced the sobriquet, using it on political merchandise and during speeches. Mr. Trump also carried Michigan last year, and he has won a wary ally in his tariff effort in Shawn Fain, the president of the powerful United Auto Workers union and a key political figure in Michigan. More than a dozen times during her 31-minute speech on Wednesday, Ms. Whitmer described herself or her policy proposals as bipartisan, or called for elected officials from opposing parties to work together. “There’s a lot more common ground here than we think,” she said. “While partisanship has infected every aspect of our lives, driven by opportunistic politicians, cynical media figures and addictive algorithms, our people are not as divided as our politics.” She said she had come to Washington with the Republican speaker of the Michigan House to meet with White House officials. Ms. Whitmer’s measured tone stood out as other top Democrats — including governors who, unlike her, face re-election next year — sound alarms not just about Mr. Trump’s tariffs but also about the president himself. When Gov. Josh Shapiro of Pennsylvania gave a speech last week in Bethlehem, Pa., he was more direct in blaming Mr. Trump. “I’m not sure why the president of the United States wants to do this to our small businesses, wants to harm our main streets,” Mr. Shapiro said. “This tariff war that he is starting, this button that he is pushing, is going to have one effect, and that effect is to drive up costs on consumers and businesses throughout Pennsylvania.” Gov. JB Pritzker of Illinois has labeled the tariffs “Trump’s tax on working families.” And Gov. Tim Walz of Minnesota recently accused Mr. Trump of damaging the economy. “I think the biggest myth perpetuated on this country is that Donald Trump understands anything about business,” he said on MSNBC. “He’s bankrupted every single one he’s been into and now he’s bankrupting this country.” Democrats have shown new energy. The party and its liberal allies won a pivotal, $100 million contest last week for the Wisconsin Supreme Court, conducted mass street protests against the Trump administration last weekend and have shown strength in special elections. At the same time, Democrats have leaned away from ideas of bipartisanship and toward fierce opposition to Mr. Trump and his billionaire allies. But on Wednesday, Ms. Whitmer warned against harvesting fury without a longer-term plan. “We want leaders who are not just focusing on keeping us angry with one another,” she said, “but where do we get to where we want to be.” Making restaurant appliances and cookware at a small factory in Guangzhou, China, on Wednesday.Credit...Qilai Shen for The New York Times Even as President Trump heaped additional tariffs on China, his barrage of trade levies on countries across Asia and unpredictability about what he might do next have encouraged some companies to hunker down in China, exactly the opposite of what he had hoped. Mr. Trump has steadily ratcheted up the pressure on China. As of Wednesday, his new tariffs on China exceed 100 percent, including a last-minute escalation serving as punishment for Beijing’s retaliation on earlier levies. However, in contrast to what happened during his first term, Mr. Trump has accompanied the tariff campaign on China with steep import duties on dozens of other countries, including a handful of Asian countries that became popular alternatives in the earlier trade war between Beijing and Washington as a way to circumvent levies and limit supply chain disruptions. But for some companies, the so-called reciprocal tariffs have had the unexpected effect of making China an even more appealing place to produce in and buy from. It has eliminated some of the motivation to diversify production or sourcing to places like Vietnam, India or other Asian countries. In addition, the chaos that has followed last week’s announcement has made companies wary about adding more upheaval with a drastic change to their supply chains. Faced with constant flux and unpredictability, companies are choosing to stay with what they know: longstanding relationships with Chinese suppliers or manufacturing partners. “Staying in China and making China work is everyone’s strategy right now,” said Travis Luther, founder of MOSO Pillow, a Denver-based maker of bedding made from bamboo fiber. Image Operating machinery on the production floor of YRL Toys, a plush toymaker, in Dongguan, China, in March.Credit...Qilai Shen for The New York Times Mr. Luther, who attended a conference for American entrepreneurs this week, said he, like other business owner attendees, was not devoting time to searching for new partners or ways to move from China. Instead, he was working with his Chinese business partner to find ways to save costs or develop new products. Cost advantages are only one part of what makes China the go-to destination for making goods. “That’s not even why most people are in China anymore,” Mr. Luther said. “It’s because they have very sophisticated manufacturing and engineering processes.” Mr. Trump has said the tariffs will help bring manufacturing back to the United States, but that remains a difficult proposition. Currently, most American factories cannot match China’s manufacturing capability, capacity and speed even if the tariffs eat into its cost advantages. As trade tensions escalated in the first Trump presidency, many American and multinational companies opted to move some production away from China to less adversarial countries. For most, America was not a viable option. But changing suppliers is a difficult, expensive and time-consuming process. Mr. Luther said a consultant had told him that it would cost at least $6 million to build a U.S. facility to grow and process bamboo fibers. And in the several years it would take for the bamboo trees to grow, he would have to pay the tariffs to import fibers from China. A complete supply chain overhaul to another country requires time and money — something companies are reluctant to pursue unless they know where government policy is heading. “It’s like the fog of war, but it’s the fog of trade war,” said Kit Conklin, the global head of risk and compliance at Exiger, a supply chain mapping firm. “There’s got to be policy certainty for industry to react.” Image Garment factory workers taking a lunch break at a factory in Prey Nob near Sihanoukville, Cambodia in September 2018.Credit...Adam Dean for The New York Times A top executive at an international contract manufacturer said it was impossible to make any long-term decisions about shifting outside China based on what feels like haphazard decision-making from the United States. “The rules of the game seem to change every day. It feels we have no option but to sit tight,” said this executive, who asked not to be identified given the sensitive nature of tariff discussions in the U.S. and China. When American and multinational companies started to move some production from China several years ago, many Chinese factory owners opened facilities in neighboring Asian countries or Mexico. It was a way to reroute some of the flow of goods through countries with significantly lower duties. But the recent tariffs on about 60 countries that imposed duties of 46 percent on Vietnam, 36 percent on Thailand and 27 percent on India “greatly diminish” the incentive to relocate factories away from China, according to a research note from Nomura Securities, a Japanese investment bank. Nomura said that while China still faces substantial challenges from the higher tariff, “the broader tariff net cast over its competitors may inadvertently preserve its position in global supply chains.” Sarah Massie, who runs a consulting practice advising American companies on foreign trade, said that when tariffs are harsh everywhere, people tend to stick with the status quo. In the manufacturing world, China is the status quo. “If everybody is getting hit, then that’s definitely stopping some of the looking,” Ms. Massie said. “Because people think at least we already know what this supplier gives us and we were happy with them before the tariffs hit, so why don’t we just stay happy. But whether they can continue at that cost is a whole different story.”