trade war

Amidst the trade tensions between the US and China, India emerges as a key player. Companies like Apple are shifting production to India. This shift is due to tariffs and India's conciliatory trade stance. The Indian government is providing incentives to boost manufacturing. While challenges remain, India is well-positioned to benefit from the global supply chain shifts.

The bond market has not settled down even after Trump’s ceasefire. The spectre of financial meltdown is once again haunting markets, which no longer trust Trump or his financial wisdom

Indian stock markets experienced a third consecutive day of gains, with the Sensex climbing 0.4% and the Nifty rising 0.5%. Investor confidence was bolstered by positive local factors, including expectations of a strong monsoon and potential interest rate cuts. Bank stocks led the rally, fueled by a drop in retail inflation to a five-year low, overshadowing global trade war concerns.

President Xi Jinping, during his visit to Vietnam, urged for a united front against "unilateral bullying," seemingly targeting US tariffs. He emphasized the need to protect global free trade and supply chains amidst escalating trade tensions between China and the US. Vietnam, balancing relations with both nations, faces a delicate situation due to its role in global manufacturing.

As trade tensions escalate, President Xi Jinping adopts a confrontational stance against US tariffs, signaling readiness for a prolonged trade war. Beijing retaliates with duties and prepares for economic resilience, while Trump aims to address the trade deficit and appeal to voters. The global markets face turmoil, and analysts warn of potential economic fallout.

Amidst the escalating trade war with the US, China has appointed Li Chenggang as its new top international trade negotiator. This decision comes as both nations impose steep tariffs on each other's goods.

China said Monday that exports soared 12.4 percent year-on-year last month, beating expectations as Beijing navigated mounting trade headwinds sparked by US President Donald Trump. "The strong export data reflect frontloading of trade before the US tariffs were announced," Zhiwei Zhang, President and Chief Economist at Pinpoint Asset Management said in a note.

Global markets experienced volatility due to President Trump's tariff policies. Investors sold US government bonds, and the dollar weakened. Wall Street indexes showed mixed performance. European markets also fluctuated. Gold prices reached a record high. JPMorgan Chase reported strong first-quarter profits. Asian markets reacted differently, with Tokyo declining and Hong Kong rising.

US inflation eased in March, driven by lower petrol, air travel, and hotel costs, offering consumers some relief amid trade war anxieties. The annual consumer price increase slowed to 2.4%, with core inflation also weakening. Experts caution that President Trump's tariffs could reverse this trend, potentially raising prices on imported goods and impacting consumer spending.

Donald Trump has slapped up to 245% tariffs on China. China says it is not afraid of a trade war. China wants dialogue based on equality. But China faces economic challenges. Exports power China’s economy. China's domestic market is weak. The Communist Party’s legitimacy is at stake. Trump's trade policy is easier to escalate. Both Trump and Xi Jinping are in a faceoff.

President Xi Jinping, during his Southeast Asia tour, cautioned against protectionism, emphasizing that trade wars benefit no one. His visit to Vietnam, Cambodia, and Malaysia aims to strengthen regional ties amidst US tariff impacts. Xi urged Vietnam to uphold multilateral trade and stable global supply chains, positioning China as a reliable partner compared to the US.

US stocks sharply declined on Thursday, partially reversing Wednesday's gains, amid ongoing trade war anxieties. The S&P 500 fell 3%, the Dow dropped 981 points, and the Nasdaq slid 3.7%. Despite a tariff pause by President Trump, concerns persist over tariffs on Chinese goods and potential impacts on corporate earnings.

Singapore has lowered its 2025 GDP growth forecast to 0-2% due to the anticipated impact of US tariffs on global trade. The Monetary Authority of Singapore has eased monetary policy in response to economic concerns stemming from the US-China trade war. The trade war is expected to negatively affect global trade, economic growth, and business sentiment.