Global Tariff Storm: Trade Alliance Expands in the European Market, Indian Stock Market Stays Strong, Taiwanese Steel Mills Face Pressure, Bank of Canada Takes a Wait-and-See Approach
In April 2025, President Trump of the United States reinstated reciprocal tariffs, leading to global market turbulence. BizLink-KY from Taiwan expanded its presence in the European market to mitigate risk, while India's stock market continued to show positive returns thanks to strong fundamentals and minimal exposure to the U.S. Major Taiwanese stainless steel manufacturers, Yieh United Steel and Tang Eng, faced pressure due to fluctuations in raw material prices and a sudden drop in demand. The Bank of Canada halted interest rate cuts amid an uncertain trade environment, adopting a dual-scenario forecasting model to manage economic impacts.
Key Updates
04/16 18:21
Global Tariff Storm: Trade Alliance Expands in the European Market, Indian Stock Market Stays Strong, Taiwanese Steel Mills Face Pressure, Bank of Canada Takes a Wait-and-See Approach
In April 2025, President Trump of the United States reinstated reciprocal tariffs, leading to global market turbulence. BizLink-KY from Taiwan expanded its presence in the European market to mitigate risk, while India's stock market continued to show positive returns thanks to strong fundamentals and minimal exposure to the U.S. Major Taiwanese stainless steel manufacturers, Yieh United Steel and Tang Eng, faced pressure due to fluctuations in raw material prices and a sudden drop in demand. The Bank of Canada halted interest rate cuts amid an uncertain trade environment, adopting a dual-scenario forecasting model to manage economic impacts.
BizLink's Global Strategy to Mitigate Tariff Risks and Expand in Europe
BizLink-KY's Chairman, Liang Huazhe, stated that in response to the high tariffs imposed by the Trump administration, the company has already initiated a global capacity restructuring and acquisition strategy. BizLink currently has 6 locations in North America, 15 in the EU, and 16 in Asia, making it one of the most globally comprehensive wire harness manufacturers. Recently, BizLink announced the acquisition of Swiss Alpha Elektrotechnik AG for 24.3 million Swiss francs, further strengthening its presence in the European high-voltage cable and rail transit markets.
Additionally, BizLink has completed the acquisition of Slovakia's EASYS s.r.o. and the US's Cable Connection, and has launched new plants in Tainan and Batam, Indonesia, focusing on high-speed cables and automotive wire harnesses. Liang Huazhe emphasized that these expansions not only address tariff and geopolitical risks but also enhance the ability to be closer to customers and manage costs.
Indian Stock Market's Resilience Highlights Long-term Investment Value
Amidst a general decline in global stock markets, the Indian stock market has shown relative stability. Since Trump announced the tariff policy on April 2, the MSCI Asia Index has fallen by 5%, while India's Sensex and Nifty 50 indices have quickly rebounded to 77,078 points and 23,447 points, respectively, returning to pre-policy levels.
According to JPMorgan research, India's exports to the US account for only 0.5% of its GDP, the lowest among major Asian countries. Coupled with the Reserve Bank of India's initiation of a rate-cut cycle since the end of last year and active liquidity injections, foreign investors have become net buyers, indicating confidence in India's economic and corporate profit outlook.
Although corporate earnings reports still face downward revision risks in the short term, institutional investors generally have a positive outlook on India's medium to long-term performance, especially in non-bank finance, heavy electrical, domestic consumption, and clean energy sectors. The price-to-earnings ratio of the Indian stock market has fallen back to its long-term average, providing opportunities for strategic investment.
Yieh United and Tang Eng Confront Dual Pressures of Raw Materials and Demand
Taiwan's stainless steel giants Yieh United (9957) and Tang Eng raised the price of their main 304 series products by NT$4,000 per ton in April, marking the largest increase this year. However, following the implementation of Trump's tariff policy, market demand has frozen, leading to a sharp decline in buying interest upstream and downstream.
The spot nickel price on the London Metal Exchange (LME) fell from $16,000 per ton to $13,800, although it later rebounded to $14,500, the average price in April was still $1,000 lower than March. The spot price of China's Wuxi 304 series hot-rolled products also fell by RMB 500 to RMB 12,700.
Although the Taiwanese market has not yet shown disorder due to support from steel mills and distributors, institutional investors expect that the May pricing may struggle to continue the upward trend, increasing operational pressure on steel mills.
Bank of Canada Halts Rate Cuts, Adopts Dual Scenario Forecast to Tackle Trade Uncertainty
The Bank of Canada (BoC) announced on April 16 that it would maintain the benchmark interest rate at 2.75%, ending a series of seven consecutive rate cuts since June 2024. BoC Governor Tiff Macklem noted the uncertainty surrounding US trade policy, making traditional economic forecasts inadequate for policy guidance, thus adopting dual scenario simulations.
The first scenario assumes that most tariffs are eventually removed, retaining only those on steel, aluminum, and Chinese goods, leading to a short-term stagnation in Canada's GDP and inflation falling to 1.5%. The second scenario envisions a full-scale trade war, with Canada's retaliatory tariffs covering CAD 115 billion worth of goods, resulting in four consecutive quarters of negative GDP growth and inflation rising to 3.5%.
The BoC emphasized maintaining policy flexibility and adjusting tools based on economic data. Following the interest rate decision announcement, the Canadian dollar rose by 0.51% against the US dollar, and the two-year government bond yield rose by 0.9 basis points to 2.541%.
