Equities recover on tariff talks: a global review 📄 📌

Following a record-breaking sell-off that began on Wednesday after Trump announced new tariffs, today markets in many countries are finally showing a slight rebound. Investor optimism is fueled by hopes of progress in negotiations and the potential reduction of tariff rates for at least some trade partners.

According to Treasury Secretary Scott Bessent, about 70 countries have already contacted the U.S. administration expressing interest in negotiating trade deals. However, the situation is far from resolved, and considerable uncertainty remains—particularly with the European Union, Canada, and China, the U.S.' main trading partners. Let’s take a look at the progress made by selected countries in these negotiations.

Japan

• Tariffs imposed: 25% on car imports, 24% on other goods.

• Economic impact: Potential GDP growth reduction of up to 0.8%.

• Response: Prime Minister Shigeru Ishiba is urging Trump to reconsider the decision.

• Negotiation status: Talks are set to begin soon; Japan is pushing for tariff relief.

As of April 8, 2025, Japan is facing significant economic pressure from the new U.S. tariffs—25% on imported cars and 24% on other goods—which could reduce the country's GDP growth by up to 0.8%. In response, Prime Minister Shigeru Ishiba has called on President Trump to reconsider these measures.

In recent hours, Japan has gained priority status in U.S. trade negotiations, bolstered by a phone call yesterday between Ishiba and Trump. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are expected to represent the U.S. in the talks. Previous statements from Trump suggest that Japan has deployed its top negotiation team, raising hopes for an agreement. This progress is fueling optimism in the stock market—Japan’s JP225 index is rebounding by 2.75% today, and has risen nearly 9.50% from yesterday’s lows.

Source: xStation 5

European Union (EU)

• EU’s proposal: Elimination of industrial tariffs under the "zero-for-zero" principle.

• U.S. response: Trump rejected the offer due to other trade imbalances.

• Retaliatory measures: EU is considering tariffs on American goods.

• Stance: EU prefers dialogue but is prepared to take proportional action.

The EU proposed a "zero-for-zero" agreement aimed at eliminating mutual tariffs on industrial goods to ease trade tensions with the U.S. However, President Trump rejected the offer, citing remaining trade imbalances. EU Trade Commissioner Maroš Šefčovič expressed willingness to negotiate but noted a lack of "real engagement" from the U.S. side.

In response to the U.S. rejection, the EU is considering retaliatory tariffs on American imports—potentially starting April 15—targeting selected goods with a 25% duty. These measures will only be implemented if bilateral talks fail. The EU is currently holding discussions with member states to establish a united position. Although negotiations remain the preferred route, the EU is ready to take proportional retaliatory steps if necessary.

The Euro Stoxx 50 index is rebounding by 2.12% today, gaining a total of 4.85% from yesterday’s lows. This is a weaker rebound compared to Japan’s JP225 index. Both indices had previously dropped around 17–18% from their end-of-March levels.

Source: xStation 5

EU–China Cooperation

• "China and the EU should intensify cooperation, ensure free and open trade and investment," — Chinese state media.

• China is ready to strengthen mutual political trust with the EU.

Amid escalating transatlantic trade tensions, the EU is seeking to strengthen its ties with China. European Commission President Ursula von der Leyen recently discussed deeper trade cooperation with Chinese Premier Li Qiang. Both sides expressed support for a reformed global trading system. Nevertheless, the EU remains cautious due to persistent trade imbalances and the influx of subsidized goods from China.

China

Tensions between the U.S. and China have flared up again this week. President Donald Trump has threatened an additional 50% in tariffs on Chinese imports unless Beijing withdraws the 34% retaliatory tariffs it announced last Friday—by the end of today. China has declared it will “fight to the end,” refusing to make concessions and signaling readiness to implement countermeasures.

Yesterday, Trump also announced on Truth Social that he is ending trade talks with China and canceling scheduled meetings, deepening fears of a prolonged trade war.

The CHN.cash index has lost just over 18% since the end of March due to the escalating trade war with the U.S. With no progress in negotiations and more tariffs possibly coming as soon as tomorrow, Chinese indices are seeing the weakest rebound. Today, CHN.cash is up 2.50%, and just 4.00% from recent lows.

Source: xStation 5

Vietnam

Vietnam has expressed willingness to increase imports of American goods—including defense and security products—as part of efforts to reduce its trade surplus with the U.S. Additionally, Vietnam has requested a 45-day delay in the implementation of the 46% U.S. tariffs to facilitate negotiations.

Taiwan

Taiwan’s Foreign Minister Lin Chia-lung stated that the island is ready to enter trade negotiations with the U.S. “at any time.” Although semiconductors—Taiwan's key export—are currently excluded from the new U.S. tariffs, TSMC shares have dropped nearly 26% from recent highs, reflecting broader concerns. Taiwan’s proactive approach aims to mitigate potential economic fallout.

Source: xStation 5