Filenews 23 April 2025
U.S. President Donald Trump has announced a "significant" reduction in tariffs he has imposed on China, bringing relief to global markets.
Hopes of a possible de-escalation of tensions between Beijing and Washington following Trump's statement on tariffs drove Asian stock markets soaring today, from Tokyo to Hong Kong, and allowed the dollar to rebound.
The Republican said he "has no intention" of firing Federal Reserve Chairman Jerome Powell, despite his harsh criticism.
On the sidelines of a ceremony at the White House, Trump admitted to reporters that the additional 145 percent tariffs he imposed on Beijing "are very high," adding that "they will be significantly reduced."
"In no case will they stay close to this number," the US president stressed, although he explained that "we will not go back to zero". "We're going to be very polite, they're going to be very polite and we'll see what happens," Trump said, referring to China. "In the end, they will have to reach an agreement because without it they will no longer be able to have trade relations with the United States," he warned.
"We define the terms of the agreement and it will be a fair agreement. I believe that it is a process that will proceed quite quickly," he estimated.
Trump imposed additional tariffs on U.S. trading partners, mainly in Europe and Asia, in early April, causing turmoil in markets. Then, a week later, it reduced to 10 percent the additional tariffs for all countries except China.
The additional tariffs imposed by the Republican on Beijing amount to 145 percent, with China responding by imposing additional 125 percent tariffs on U.S. imported products.
Although Beijing has not confirmed talks with Washington, U.S. Treasury Secretary Scott Bessent assessed yesterday during an event in Washington that the current situation is not sustainable for either side.
Bessent sees the additional tariffs as acting as a trade embargo and hindering trade in goods between the U.S. and China. White House spokeswoman Caroline Levitt said talks to reach a trade deal with Beijing were progressing "very well."
At the same time, China called on Britain and the EU to defend global trade against American aggression. "In the current context of generalized unilateral intimidation, China and Britain have a responsibility to protect the multilateral trade order," Chinese Foreign Minister Wang Yi told his British counterpart David Limi during a phone call.
In another conversation he had with his Austrian counterpart Beate Mainl-Raisinger, Wang Yi pointed out that "China and the EU should assume international responsibilities, defend the multilateral trading system with a common agreement, and work together to build an open global economy."
Gains on Asian Stock Exchanges
U.S. President Donald Trump's signal to cut tariffs on China, fuelling hopes for a de-escalation of the trade war, brought to Asian stock markets – after Wall Street's gains.
Hong Kong stocks led the gains, with the Hang Seng index jumping 2.23%, while China's CSI 300 index strengthened 0.22%.
Meanwhile, Japan's Nikkei 225 rose 2.09%, while Topix gained 2.05%.
In South Korea, Kospi strengthened by 1.51%, while Kosdaq strengthened by 0.93%.
India's Nifty 50 was 0.64% higher.
Meanwhile, Australia's S&P/ASX 200 posted gains of 1.22%.
Wall Street's main indexes posted strong gains of more than 2 percent on Tuesday as hopes were revived that the U.S. and China, the world's two largest economies, would find common ground to avoid an uncontrolled trade war.
The market has moved sharply higher since the start, with the indices widening their gains after reports that Treasury Secretary Scott Bessent expects the US-China tariff tension to de-escalate.
In particular, the US Treasury reportedly stated at a closed investor event on Tuesday that the confrontation with China over tariffs is not sustainable and expects the situation to de-escalate. He estimated that the U.S. and China will begin the process of de-escalating trade hostilities in the "very near future."
