The US-UK Trade Agreement and the US-China Negotiations Boost Market: Oil Prices and Tesla Stock Rise, and Gold Climbs Due to a Weakened Dollar

Taiwan • Business • 05/10 02:00
The US-UK Trade Agreement and the US-China Negotiations Boost Market: Oil Prices and Tesla Stock Rise, and Gold Climbs Due to a Weakened Dollar

On May 10, 2025, US-China high-level trade negotiations took place in Geneva, and the US and UK reached a bilateral trade agreement, enhancing market confidence. Oil prices rose, driven by trade optimism and Middle Eastern tensions, while Tesla's stock price rebounded thanks to tariff reductions and advancements in its self-driving taxi program. Gold prices rose due to the weakening dollar and geopolitical risks. This article examines how these events affect oil prices, Tesla's stock price, and gold prices.

Key Updates

05/11 14:25

An Experiment by American Small Business Owners Reveals Consumer Willingness to Pay High Prices for "Made in USA" Products: Results That Give Food for Thought

Afina Showerhead Filter founder Ramon van Meer tested if consumers are willing to pay more for products "Made in USA" amid US-China trade tensions. He sold two identical products on his website, one priced at $129 made in China and the other at $239 made in the USA. The results showed that 584 customers opted for the China-made version, while no one purchased the USA-made version, indicating that consumers are not willing to pay extra to support American manufacturing. Van Meer plans to shift production to other Asian countries to cut costs.

05/11 03:53

Thaw in US-China Trade War: Geneva Talks Begin, Four Major Sectors in the Taiwan Stock Market Preparing for Rotation

On May 10, 2025, high-level representatives from the US and China held their first formal talks in Geneva, Switzerland, in an attempt to ease economic tensions caused by punishing tariffs. The talks, led by US Treasury Secretary Besant and Chinese Vice Premier He Lifeng, lasted eight hours and are set to continue on May 11. The Taiwan stock market showed signs of capital rotation, with four major sectors likely to be affected. Ukraine and the India-Pakistan regions announced ceasefires, easing global market sentiment.

05/10 15:02

Donald Trump's new tariff policies spark volatility in the U.S. Treasury bond market: 30-year Treasury yield jumps 50 basis points within a week

In April 2025, the U.S. Treasury bond market experienced significant volatility due to a new round of high tariff policy announced by Trump on April 2. The 30-year Treasury yield surged nearly 50 basis points in a single week, marking the largest increase since 1987. Perry, the manager of SOMA at the New York Federal Reserve Bank, pointed out that the large-scale closing of "swap spread trades" by leveraged investors was one of the primary reasons for the abnormal spike in yields. The Trump administration subsequently delayed some of the tariff measures, and the Federal Reserve increased liquidity support to stabilize the market.

05/10 11:29

Sino-American trade talks in Geneva halted: Chinese delegation abruptly withdrew from the venue

On May 10, 2025, high-level economic and trade negotiations between the US and China were held in Geneva, Switzerland. The Chinese delegation abruptly left the venue, causing the talks to be interrupted, and the US representatives subsequently left as well. This meeting marked the first formal engagement between the two sides since the escalation of high-tariff tensions, aimed at finding a way to ease tensions. Both parties had previously expressed openness to dialogue, but the sudden turn of events cast doubt on the future of the negotiations.

05/10 07:29

Impact of Trump's 2025 Tariff Policy on U.S. Supermarkets: Costco's Five Major Imported Food Prices Face Pressure

In April 2025, President Trump of the United States announced the imposition of a minimum tariff of at least 10% on all imported goods, and punitive tariffs of up to 145% on products from specific countries, leading to global trade upheaval. This policy is intended to revitalize American manufacturing but has triggered price fluctuations in the U.S. retail market. Five key categories of imported foods at Costco—grains, coffee, wine, cheese, and cooking oil—have been severely impacted, resulting in price increases. This article examines the specific effects on these products and the market's reaction.

05/10 02:00

The US-UK Trade Agreement and the US-China Negotiations Boost Market: Oil Prices and Tesla Stock Rise, and Gold Climbs Due to a Weakened Dollar

On May 10, 2025, US-China high-level trade negotiations took place in Geneva, and the US and UK reached a bilateral trade agreement, enhancing market confidence. Oil prices rose, driven by trade optimism and Middle Eastern tensions, while Tesla's stock price rebounded thanks to tariff reductions and advancements in its self-driving taxi program. Gold prices rose due to the weakening dollar and geopolitical risks. This article examines how these events affect oil prices, Tesla's stock price, and gold prices.

05/09 22:31

Adafruit, a New York electronics company, announced a price increase due to a $36,000 tariff burden.

Adafruit Industries, an electronics hardware company based in New York City, USA, announced it will raise prices on some products due to receiving an import duty bill totaling $36,126.46. This cost arises from the high tariff policies imposed by the United States on China and other countries, with a tax rate of 145% specifically applied to Chinese products. Adafruit stated that this is putting pressure on their cash flow and may result in unsold inventory. This situation highlights the operational challenges American companies face under the current trade policies.

05/09 13:30

Trump's 2025 Trade Policy: Impact Analysis from Tariff Shocks to U.S. Stock Market Rebound

In the spring of 2025, President Trump of the United States announced the "Liberation Day" tariff initiative, imposing a 145% tariff on goods from China, which caused market turmoil. Subsequently, Trump suggested a potential reduction in tariffs and secured a trade agreement with the United Kingdom, leading to a rebound in the U.S. stock market. The timing of these policy actions and market reactions offers a concrete example of the interaction between policy and the stock market.

05/09 10:31

The Impact of Trump's Tariff Policy on American Family Farmers: Farmers Facing Shrinking Export Markets and the Risk of Bankruptcy

Family farms in the agricultural heartland of the United States are under pressure due to the tariff policies of President Trump, especially the high tariffs on China that are impacting agricultural exports. Even though the government claims these measures will result in fairer trade, farmers are dealing with shrinking export markets, declining prices, and a rise in bankruptcies. The article examines the impact of these policies on family farms by analyzing farmers' experiences and data.

05/09 09:03

By 2025, China-US trade is projected to decrease by 2.1%, and the throughput at US West Coast ports is expected to drop by 30% in May.

Since early 2025, China-US trade has been under continuous pressure, with a total trade value of 1.44 trillion yuan from January to April, a 2.1% decrease compared to the same period last year. Container throughput at the Los Angeles and Long Beach ports is expected to drop by 30% in May, due to importers stocking up early, weak demand, and changes in tariff policies. US imports surged by 9.1% in April, but demand plummeted in May. These figures indicate a significant slowdown in China-US trade and logistics activities.

US-UK Trade Agreement Finalized, Tesla Stock Rises for Third Consecutive Week

On May 8, US President Trump and UK Prime Minister Keir Starmer announced a limited bilateral trade agreement. The agreement includes reducing US tariffs on UK car imports from 27.5% to 10% and eliminating the 25% tariffs on UK steel and aluminum products. In exchange, the UK will lower import barriers on US agricultural products and expand market access for US digital trade and financial technology sectors.

This agreement directly benefits Tesla (TSLA-US). Tesla can reduce import tariffs on its Model S and Model X vehicles exported to the UK, boosting its stock price by nearly 7% during trading on May 9, closing at $307.04 per share, marking the third consecutive week of gains. Wedbush analyst Dan Ives noted that market expectations for easing US-UK tariff policies further bolstered investor confidence in Tesla.

US-China Trade Talks Resume, Trump Signals Tariff Reduction

High-level US-China trade representatives began talks in Geneva, Switzerland, on May 10, marking the first official meeting since Trump's return to office. The US delegation is led by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, while the Chinese side is represented by Vice Premier He Lifeng.

Trump recently stated that the 145% tariffs on Chinese imports "cannot go any higher" and hinted at a possible reduction to 80%. According to reports from the New York Post and Bloomberg, the Trump administration is considering lowering tariffs to between 50% and 60% as a starting point for renewed negotiations with China. White House spokesperson Levitt emphasized that any tariff adjustments would require concessions from China.

China, however, is approaching the talks cautiously, describing it as a "meeting" rather than "high-level consultations" and stating that it will observe the US's bottom line and demands. Chinese Vice Foreign Minister Hua Chunying criticized the Trump administration's approach as "unsustainable" but also expressed confidence in China's ability to handle trade challenges.

Oil Prices Rise on Trade Optimism and Middle East Tensions, OPEC+ Production Increase Limits Gains

Driven by optimism over the US-UK trade agreement and US-China negotiations, crude oil futures prices rose nearly 2% on May 9. Brent crude increased by $1.07, closing at $63.91 per barrel, while WTI crude rose by $1.11, closing at $61.02 per barrel. Both benchmark oil prices rose over 4% this week, marking the first weekly increase since mid-April.

Market analysts pointed out that easing trade tensions between the world's two largest oil consumers, the US and China, would help stabilize expectations for oil demand. Additionally, escalating tensions in the Middle East also pushed oil prices higher. The Israeli military reported intercepting a missile from Yemen, with the Houthi rebels claiming responsibility for the attack. Ceasefire negotiations between the US and the Houthi rebels have also stalled.

However, OPEC+ announced this week that it would increase production by 411,000 barrels per day starting in June as part of a gradual easing of the voluntary production cut plan. Despite a slight decrease in overall production in April due to supply declines in Libya, Venezuela, and Iraq, the production increase plan still puts pressure on oil prices.

Gold Prices Supported by Weaker Dollar and Geopolitical Risks

Gold prices rose 1.1% on May 9, with spot gold closing at $3,340.29 per ounce, up about 3.1% for the week. US gold futures also rose 1.1%, closing at $3,344 per ounce. The dollar index fell 0.3% that day, making gold more attractive to holders of non-dollar currencies.

Geopolitical risks also drove demand for safe-haven assets. In addition to the Middle East situation, India and Pakistan engaged in border conflicts for the third consecutive day, using drones and artillery, marking one of the most severe military standoffs in nearly thirty years.

Furthermore, uncertainty over Trump's trade policies remains high. Federal Reserve Governor Michael Barr noted that if tariffs continue to rise, it could drive up inflation, suppress economic growth, and increase unemployment, further enhancing gold's appeal as a safe-haven asset.

Iran Nuclear Talks Resume Amid Continued US Sanctions

The US imposed sanctions on a third independent Chinese refinery this week for allegedly purchasing Iranian oil in violation of regulations. This move is seen as part of US pressure on Iran to return to the nuclear agreement negotiation table. The fourth round of US-Iran nuclear talks is expected to take place in Oman this weekend.

The uncertainty surrounding Iranian oil supply, coupled with US sanctions on Chinese refineries, further disrupts the global energy market supply chain, becoming another potential factor for oil price volatility.

References

People Also Ask...

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