Global markets experienced a significant upswing on Monday following a temporary suspension of some new tariffs on electronics, adding further drama to President Trump’s shifting trade policy. With Japan’s stocks increasing by 1%, Hong Kong benchmarks climbing 2%, and mainland China seeing a slight rise, Asian markets showed mixed results. Conversely, Taiwan, a key player in global tech manufacturing, saw a slight dip in its stock market.
In Europe, the Stoxx Europe 600 rose by 2% during early trading. Across the Atlantic, S&P 500 stock futures, vital for predicting New York’s stock market performance, improved by over 1%. This uptick followed a turbulent week on Wall Street, where the S&P 500 initially suffered losses but finished with its best weekly performance since November 2022. The boost came after President Trump announced a 90-day halt on the “reciprocal” tariffs imposed on numerous countries just a week prior.
Late Friday, U.S. customs officials exempted a range of tech products from the high tariffs, sparing smartphones, semiconductors, and computers from facing most of the 145% tariffs enforced on China. This reprieve provided relief to investors and was seen as a victory for Apple and other tech giants, given the critical role of tech components in U.S. imports from China. A Chinese Ministry of Commerce spokesperson described this move as a “small step” toward correcting the tariffs placed on China.
However, the situation grew more complicated on Sunday as President Trump hinted that these exemptions could be short-lived, with plans to impose new tariffs on semiconductors and other technologies. Consequently, Taiwan Semiconductor Manufacturing Company, the largest global chip producer, saw its shares drop by 2.7% on Monday. Meanwhile, ASML, a leading Dutch supplier of advanced semiconductor equipment, enjoyed more than a 3% rise in its stock.
The global financial markets have been on a rollercoaster due to the inconsistent rollout of tariffs, which President Trump asserts will stimulate domestic manufacturing. In the meantime, America’s trading partners have struggled to adapt to the broad array of tariffs, including a 10% levy on virtually all U.S. imports. Consumer confidence in the U.S. has plummeted to unprecedented lows.
Experts, including Citibank’s equity analysts, caution that the tariffs are placing strain on the economy. “Even a quick tariff resolution with key partners leaves the economy under pressure from structurally higher trade costs and consumer spending headwinds,” they noted. Similarly, Kazuo Ueda, governor of Japan’s central bank, warned that these tariffs could exert “downward pressure” on both Japan’s and the global economy.
The Treasury market’s volatility has also unsettled investors and analysts. The 10-year Treasury yield, a crucial global interest rate indicator, rose sharply to approximately 4.5% on Friday, up from less than 4% the previous week. Such a leap, which indicates a drastic price drop, suggests a significant shift from U.S. markets, mirrored by a falling U.S. dollar.
These market fluctuations, driven by the White House’s major policy changes, have left investors in a state of uncertainty. As Henry Peabody, a strategist at Riverhead Research, remarked, “The world may look vastly different in a year or two’s time than any other environment we have lived through.” He advised patience, noting that equities would need to decline further to provide a “margin of safety” before recommending market reinvestment, encapsulated in his phrase, “It’s hurry up and wait.”
Original Source: https://www.nytimes.com/2025/04/13/business/stock-market-trump-tariffs.html
Category : Standard & Poor’s 500-Stock Index,Stocks and Bonds,International Trade and World Market,Customs (Tariff),United States Economy,Standard & Poor’s Corp,Trump, Donald J
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Publish Date: 2025-04-14 13:34:00
