Donald Trump’s “reciprocal” tariffs on dozens of countries, including a massive 104% duty on Chinese goods, took effect on Wednesday, escalating the global trade war. The move has shaken the global trading order, raised recession fears and sent stock markets reeling.

The S&P 500 has lost nearly $6 trillion since Trump unveiled the tariffs last week, its deepest four-day loss since the 1950s. Asian markets plummeted, with Japan’s Nikkei down 3% and South Korea’s currency hitting a 16-year low. European and US stock futures indicate more losses ahead.

Trump has offered conflicting views on the tariffs’ permanence, saying they’re “permanent” but also pressuring other leaders to negotiate. He expects China to pursue an agreement and has scheduled talks with South Korea, Japan and Italy.

The latest tariffs target countries Trump believes are “ripping off” the US, including close allies like the European Union, which faces a 20% tariff. The EU will vote on counter-measures later Wednesday. Trump aims to fix America’s trade imbalances, citing barriers on US goods.

Economists warn that US consumers will bear the brunt of the trade war, facing higher prices on everyday items. A Reuters/Ipsos poll found 75% of Americans expect price increases in the next six months.

China vowed to fight what it sees as “blackmail,” while central banks in New Zealand and India cut rates to cushion the tariff impact. South Korea announced emergency measures for automakers, including tax cuts and subsidies.

Trump signaled potential new tariffs on pharmaceutical imports, exempted so far. The full effects of Wednesday’s tariffs may be delayed, as goods in transit before midnight are exempt until May 27. The trade war’s long-term consequences remain uncertain.

rts, one of a handful of categories of goods that have been exempted from the new taxes.