Global Markets Bounce as US Temporarily Eases Trump’s Tech Tariffs

Smartphone and Laptop Exemptions Lift Global Investor Confidence

Global stock markets saw a boost on Monday after the US temporarily excluded smartphones, laptops, and other consumer tech from its planned tariffs on Chinese goods. This unexpected move raised hopes among investors that the worst of former President Donald Trump’s trade war might be avoided — at least for now.

The White House’s decision sparked optimism in Asia, Europe, and the US. Apple and other tech companies, heavily reliant on Chinese manufacturing, were among the biggest beneficiaries.

Temporary Relief — But More Tariffs Are Coming

Despite the positive market reaction, US officials made it clear that this reprieve is only temporary. Tariffs on semiconductors and other electronics are still planned as part of an ongoing investigation into trade practices.

Trump reinforced his tough stance on social media, saying:

“NOBODY is getting ‘off the hook’... especially not China which, by far, treats us the worst!”

Speaking to journalists later, Trump hinted that some flexibility may be shown on certain products, and that his administration would consult major tech companies before final decisions are made. He added that the new semiconductor tariffs would be announced “within the next week”.

Markets React Positively

Analysts say markets welcomed even a small sign of relief. Mitul Kotecha, Barclays’ Head of Emerging Markets Strategy, said:

“Investors see this as a possible opening for future US-China negotiations.”

Here’s how global markets responded:

• Japan’s Nikkei 225 rose by 1.8%
• Topix index increased by 1.6%
• S&P 500 futures were up 0.9%
• Nasdaq 100 futures climbed 1.3%
• Euro Stoxx 600 contracts rose 2.3%
• FTSE 100 futures gained 2%

US Dollar Drops, Treasury Yields Dip

The US dollar weakened, falling 0.4% against a basket of currencies, reflecting ongoing investor caution toward US assets. Meanwhile, the yield on 10-year US Treasury bonds dropped slightly to 4.46%, down from 4.17% before the tariff announcement on 2 April.

China’s Exports Surge Ahead of Tariff Deadline

In China, the mainland CSI 300 index rose 0.5% after data showed a surge in exports. Shipments jumped 12.4% in March compared to the previous year, as companies raced to beat the new tariffs. Imports were down 4.3%, an improvement from earlier months.

Sources: (FT.com)