Markets Shake as Trade War Concerns Intensify

TOKYO: Asian stock markets faced another wave of anxiety on Friday, April 11, after President Donald Trump candidly admitted that his aggressive trade war strategy against China has incurred a "cost." His remarks coincided with a steep decline in global markets.

Trump's Trade Strategy Under Scrutiny

In a statement on Thursday, Trump acknowledged a shaky transition phase due to his trade policies. However, he remained optimistic, claiming, "In the end, it's going to be a beautiful thing." His comments came as the S&P 500 plummeted 3.5% on Wall Street, following an astonishing 9.5% surge just a day earlier.

Asian Markets React to U.S. Turmoil

Early trading in Asia saw Japan's Nikkei index dive over 5%, marking a significant pullback from a previous 9.1% gain. Other markets, including Seoul and Sydney, also mirrored this downturn as concerns about a global economic slowdown heightened.

Oil Prices and Gold: The Safeguard Shift

As economic jitters spread, oil prices and the U.S. dollar fell, while gold skyrocketed to record levels—a sign that investors are seeking safe havens. The Japanese yen also strengthened against the dollar amid the turmoil.

Tariff Adjustments and Tensions Remain

In a dramatic shift earlier in the week, Trump announced a 90-day pause on imposing new tariffs—initially set at 20% on the EU and higher on other trade partners. However, tariffs on Chinese imports remained intact and were raised, now totaling a staggering 145% due to additional levies.

Global Reactions and Negotiation Prospects

Despite these tensions, the EU saw some relief in Trump's partial tariff rollback, suspending tariffs on $22.4 billion worth of U.S. goods for 90 days. However, EU officials warned of considerable countermeasures if negotiations falter. Ursula von der Leyen hinted at potential levies targeting digital services, raising the stakes.

Future Trade Talks: A Mixed Bag

While Canadian Prime Minister Mark Carney welcomed the reprieve, signaling negotiations for a new economic deal post-April 28 elections, other nations like Vietnam and Pakistan expressed readiness to initiate discussions with the U.S. In a competitive move, China announced restrictions on Hollywood films, yet emphasized its willingness to engage in dialogue.

Trump Brushes Off China's Retaliation

In response to concerns about China's film limitations, Trump remained dismissive, suggesting, "I've heard worse things." This highlights the ongoing complexity and unpredictability of international trade relations.