Trade tensions escalate between U.S. and China despite initial market rally

From Yahoo Finance: 2025-04-10 00:33:00

Asian and European stock markets surged as U.S. tariffs were put on hold, but tensions remain as China is excluded from the reprieve. The dollar struggled and U.S. stock futures turned lower, showing wavering investor confidence. The trade war is far from over, with both sides escalating tariffs.

Wall Street saw its largest gains in over a decade after Trump’s tariff U-turn, easing fears of a complete trade halt. However, U.S. raised tariffs on Chinese imports to 125%, while China retaliated with duties on American products and company restrictions. Vietnam and the U.S. are looking to negotiate a trade pact.

Chinese stocks rose despite the yuan hitting a 17-year low. Analysts attribute the rise to hope for U.S.-China talks and Beijing’s support for the markets. Bond selloff stabilized as U.S. Treasury yields retreated, calming fears of market fragility. U.S. inflation data for March is expected, potentially showing price increases due to tariffs.

Key developments influencing markets include tariff news and U.S. inflation data for March. The market remains volatile amidst escalating trade tensions between the U.S. and China.



Read more at Yahoo Finance: Signs of trouble in the relief rally