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Global stocks are in turmoil and Treasury yields are spiking after President Donald Trump's "Liberation Day" tariffs went into effect at 12:01 a.m. ET Wednesday, with Chinese imports facing a 104% levy .

A day after U.S. stock indexes closed lower following a brief surge , Dow Jones Industrial Average futures are about 1% lower, S&P 500 futures are falling 0.6%, and Nasdaq futures are little changed. Meanwhile, the Stoxx Europe 600 index is down about 3%, the Nikkei closed down nearly 4%, and Hong Kong's Hang Seng finished 0.7% higher.

Investors' disposal of their most liquid assets are causing a sell-off of U.S. bonds, and sending the 10-year Treasury yield up to 4.39%. The U.S. dollar, meanwhile, is down against the euro, yen, and pound.

"The unfavourable price action has cast some doubt on the safe haven status of the US government bond market and the US dollar at the time when the global trade war is intensifying," MUFG Bank's Lee Hardman said in a note Wednesday.

China reiterated it would “ fight to the end ” but said it was "willing to communicate with the U.S. side on key bilateral economic and trade issues."

The Ministry of Commerce said China "hopes the United States will immediately remove its unilateral imposition of tariffs, and work with China to strengthen dialogue, manage differences, and promote cooperation," the official Xinhua News Agency reported Wednesday.

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