Trump's 90-day tariff postponement did not stabilize the markets: the Asian stocks decline, the gold prices reach a new high, the yen soars to a two-year high

Taiwan • Business • 04/11 12:39
Trump's 90-day tariff postponement did not stabilize the markets: the Asian stocks decline, the gold prices reach a new high, the yen soars to a two-year high

On April 9, President Donald Trump announced a 90-day suspension of higher tariffs on 75 countries, excluding China, in an effort to ease trade tensions, but this move failed to boost market confidence. Asian stock markets briefly rebounded but then fell back, with the Nikkei 225 index plunging 5.4%. The safe-haven sentiment drove gold prices to a record high, and the yen reached a two-year high against the dollar. Concerns about the escalating U.S.-China trade war persist, leading to funds flowing into safe-haven assets.

Key Updates

04/11 18:08

The 2025 Trump Tariff Policy Initiates a Global Trade War: the Global Economy and Markets Severely Impacted

In April 2025, the global tariff policy of U.S. President Trump triggered a full-scale trade war, significantly impacting the global economy, financial markets, business operations, and consumers' lives. The U.S. and China imposed high tariffs on one another, and the EU, along with other countries, took retaliatory measures, resulting in business shutdowns, stock market volatility, and increased demand for precious metals. This policy reshaped the global economic and trade order and triggered international negotiations and created policy uncertainty.

04/11 16:39

Taiwan Semiconductor Manufacturing Company and Gigabyte Technology expand their operations in the US to counter the US tariff challenges, while Vanguard International Semiconductor Corporation remains focused on the Asian market.

Taiwanese semiconductor and electronics companies are adjusting their global strategies in response to potential high reciprocal duties from the United States. TSMC and Gigabyte have set up plants in the U.S. to strengthen local production; UMC is rumored to be a target for acquisition, attracting attention; Vanguard International Semiconductor has declined to establish a plant in the U.S. and is instead expanding in Singapore. These actions demonstrate the varied strategies of Taiwanese companies in navigating tariff uncertainties.

04/11 16:39

Escalation of the US-China Trade War: Taiwan's Electronics and Semiconductor Industries Benefit from the 145% US Tariff on Chinese Goods, Resulting in a Surge of Urgent Orders

On April 9, 2025, President Trump of the United States announced a 145% tariff on Chinese imports, while postponing high tariffs on other countries for 90 days. This decision caused turmoil in global markets, benefiting Taiwan's electronics and semiconductor sectors as urgent orders from the U.S. surged. The Taiwanese government swiftly responded by starting tariff negotiations with the U.S. and emphasized strengthening regulations to prevent "country of origin" fraud, to ensure the industry's long-term development.

04/11 14:09

Trump's Tariff Policies Spark Global Economic Shockwaves: U.S. Retirement Funds Suffer a $169 Billion Loss, European Central Bank Gears Up, Taiwan-U.S. Tariff Talks Kick Off

On April 2, President Donald Trump announced the implementation of a "reciprocal tariff policy" on 180 countries worldwide, resulting in a $169 billion loss for the top 25 state and local retirement funds in the U.S. within four trading days. The European Central Bank is preparing to tackle financial instability, and the EU forecasts that if the tariffs continue, the U.S. GDP will decrease by 3.3% before 2027. The U.S. has begun tariff negotiations with countries, including Taiwan and Israel. Taiwan is facing a 32% tariff impact and has proposed an industry support plan valued at 8.8 billion New Taiwan dollars.

04/11 13:09

Wells Fargo's first quarter profit surpassed expectations, CEO warns of potential economic impact of tariff risk in 2025.

Wells Fargo, the fourth-largest bank in the United States, announced its first-quarter earnings report on April 11, 2025, with a net profit of $4.89 billion, a 6% increase from the previous year, and earnings per share (EPS) of $1.39, exceeding the market expectation of $1.24. CEO Charlie Scharf warned that the U.S. government's recent tariff increases could hinder economic growth and stated that the bank is prepared for an economic slowdown in 2025. This statement dampened the optimistic sentiment in the banking industry, resulting in Wells Fargo's stock price rising only 1% on the day the earnings report was released.

04/11 12:39

Trump's 90-day tariff postponement did not stabilize the markets: the Asian stocks decline, the gold prices reach a new high, the yen soars to a two-year high

On April 9, President Donald Trump announced a 90-day suspension of higher tariffs on 75 countries, excluding China, in an effort to ease trade tensions, but this move failed to boost market confidence. Asian stock markets briefly rebounded but then fell back, with the Nikkei 225 index plunging 5.4%. The safe-haven sentiment drove gold prices to a record high, and the yen reached a two-year high against the dollar. Concerns about the escalating U.S.-China trade war persist, leading to funds flowing into safe-haven assets.

04/11 11:10

The United States' imposition of a 25% tariff on imported cars has shaken the global automotive industry, leading governments and companies around the world to respond actively.

On April 3, 2025, President Trump of the United States imposed a 25% tariff on all imported cars and components, causing a global upheaval in the automotive industry. The American automotive industry strongly opposed this decision, citing concerns over supply chain disruptions and increased costs. South Korea initiated an 11 trillion won support plan to stabilize its exports, Swiss companies pursued diplomatic efforts to lessen the impact, and Taiwan was placed on the U.S. list for postponed reciprocal tariff negotiations, beginning talks. This policy is reshaping the global automotive trade landscape.

04/09 18:08

The United States' 46% tariff on Vietnam has taken effect, putting pressure on Taiwanese businesses and the garment industry, prompting the Vietnamese government to launch diplomatic efforts.

On April 9, 2025, the United States implemented a 46% tariff on Vietnamese goods, affecting Vietnam's export economy, particularly impacting industries like garments, furniture, and toys. Taiwanese businesses with factories in Vietnam, such as Eclat and Makalot, are under pressure due to reduced orders. Vietnam's Deputy Prime Minister, Ho Duc Phuc, traveled to the U.S. to negotiate, expressing a willingness to reduce tariffs on U.S. goods to zero. A Reuters/Ipsos poll shows that 57% of Americans oppose this policy, fearing it will increase consumer goods prices.

04/09 17:07

Trump urges investment as a "buying opportunity," prompting a 246-point rebound in the Dow, as the China-Europe tariff escalation leads to a 23% drop in Apple's stock price.

On April 9, President Trump of the United States urged investors to "stay calm" via social media, saying "now is a great time to buy," which helped boost the Dow Jones Industrial Average by 246 points at closing. As China and the EU imposed retaliatory tariffs on U.S. goods, global markets experienced turbulence, and Apple's stock price dropped 23% over four days, erasing more than $770 billion in market value. Trump reiterated his wish for Apple to relocate its iPhone production line back to the U.S., but analysts cautioned that this could raise costs to $3,500 per unit, putting pressure on both consumers and inflation.

04/09 16:40

US-China Trade War Escalates: US Imposes a 104% Tariff on Chinese Goods, Taiwan's Electronics Industry Confronts Supply Chain Challenges

On April 9, 2025, the United States imposed a 104% tariff on goods from China, leading to a disruption in the global laptop supply chain. Brands like ASUS, Acer, Lenovo, HP, and Dell paused shipments to the U.S. for two weeks. Taiwan, being a key supply base, is facing tariff pressures from both the U.S. and China, prompting electronics companies to adjust their supply chain and market strategies accordingly. Taiwanese companies are considering shifting production capacity to India or Mexico to avoid the impact of high tariffs.

Asian Stock Markets Rebound and Then Fall, Nikkei Drops Over 5%

On April 9, Trump announced via social media that higher tariffs on goods from 75 countries that have not taken retaliatory actions against the US would be suspended for 90 days, maintaining only a 10% basic rate. This move temporarily boosted global stock markets, with the Dow Jones Industrial Average soaring 2,962 points that day, marking the largest single-day point increase in history, and the MSCI Asia Pacific Index also rising 5.6%.

However, as Trump reiterated on April 10 that tariffs would be reinstated or even increased if no agreement is reached, market sentiment quickly shifted to caution. On April 11, Asian stock markets generally fell, with the Nikkei 225 Index plunging 5.4% in early trading after a 9.1% surge the previous day, erasing most of its gains. South Korea's KOSPI Index fell 1.64%, and Australia's S&P/ASX 200 Index fell more than 2%. According to ABC News, Japan's TOPIX Index also fell 3.5%.

The Chinese market was relatively stable due to Beijing's announcement of economic stimulus measures, with Hong Kong's Hang Seng Index rising 2%, the Shanghai Composite Index up 0.6%, and the Shenzhen Component Index up 1.2%.

Safe-Haven Demand Increases, Gold Prices Hit Record High

Amid concerns over an escalating trade war, investors turned to safe-haven assets like gold. On April 10, New York spot gold prices jumped 3.03%, closing at $3,176.23 per ounce, a record high. According to Business Today, gold prices further rose 1.3% in early Asian trading on April 11, surpassing the $3,200 mark to reach $3,215.73 per ounce.

Dominic Schnider, head of commodities at UBS Wealth Management, explained that the momentum behind gold's rise is due to market expectations of further easing policies by the Federal Reserve and the ongoing trend of central banks buying gold. Nikos Tzabouras, an analyst at Tradu.com, noted that gold's safe-haven appeal is regaining market favor.

Yen Rises to 0.233, Hits Nearly Two-Year High

As a traditional safe-haven currency, the yen attracted significant capital inflows during times of market turmoil. According to the exchange rate posted by Taiwan Bank, the yen's cash selling rate rose to 0.2330 on April 11, the highest in nearly two years. Compared to the low of 0.2047 in July 2024, the amount of yen that NT$100,000 can buy has decreased by nearly 60,000.

The yen's exchange rate against the US dollar also rose to 142.87, reaching a nearly two-year high. The US dollar index fell below the 100 mark for the first time in two years. According to United Daily News, funds also moved into other safe-haven assets such as the Swiss franc, indicating market concerns about US fiscal and monetary policy uncertainties.

Tariff Policy Fluctuations Rattle Market Confidence

Despite the Trump administration's willingness to negotiate with multiple countries and the fact that 75 countries have proactively contacted the US, tariffs on China have been further increased. The White House confirmed that the overall tariff on Chinese goods has reached 145%. China announced a 125% tariff on US goods, stating it would not escalate further but emphasized that "the door is open for talks; if there is a fight, China will accompany to the end."

In a cabinet meeting, Trump mentioned that if a mutually beneficial agreement cannot be reached, the US will reinstate the original or even higher tariffs. He did not specify whether the 90-day suspension would be extended, adding, "We'll have to see what happens then."

According to Yahoo Finance, US stocks experienced a historic rebound after Trump's announcement of the tariff suspension but subsequently fell again due to policy uncertainty. The S&P 500 Index once fell 6%, the Nasdaq dropped about 7%, and the Dow Jones Industrial Average fell over 2,100 points.

References

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