1 week Ago By Quim Aranda
Donald Trump's boasts have been met with an immediate response from China. The Republican president's threat to increase , if Beijing did not withdraw those it had announced as a countermeasure to the war unleashed by the Americans, the Xi Jinping regime promised this Tuesday to "fight to the end." The Ministry of Commerce also assured in a statement that it will never accept the "nature of blackmail" by the United States.
The department itself also commented that an additional 50% tax on products manufactured in China is "a mistake upon a mistake." And it has demanded that all tariff plans be eliminated and that differences between the US and China be resolved through dialogue. In a context of unbridled escalation, the main Asian markets traded unevenly this Tuesday, with the majority, such as the Japanese Nikkei, making gains in relation to The Shanghai Composite is experiencing a slight drop of -0.
2%, the aforementioned Nikkei is trading up over 5%, as are the Hong Kong and South Korean stock markets, with 1.7% and 1.5%.
In Australia, the market also rose (1.5%), while in Singapore and Taiwan it experienced falls of 2.2% and 3.
8%, respectively. Analysts believe that the movements of these first few hours represent a natural rebound after the catastrophe of the last 96 hours. The most notable downward notes are offered by the Indonesian stock market, which fell more than 9%, and also the Thai stock market, which experienced a drop of 4%.
Both markets had been closed on Monday for local holidays. In Bangkok, the stock exchange banned short selling this week in anticipation of the chaos that affected global markets following Trump's announcements. While, as expected, Trump's push against China has no chance of intimidating Beijing—quite the opposite—other Asian capitals have begun to bend to the US president's will.
The Japanese prime minister has appointed Economy Minister Ryosei Akazawa to lead trade negotiations with the US. The White House and Japanese Prime Minister Shigeru Ishiba had agreed to begin bilateral talks during a telephone conversation yesterday. Trump has appointed Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer to lead these negotiations.
Tokyo hopes to lower the 25% tariff on car imports from Japan and the so-called 24% reciprocal tariff on other products with which the United States has punished one of Washington's most traditional Asian allies since the end of World War II. The willingness of some economies—in addition to Japan, also Vietnam—to negotiate with Trump has sparked a certain optimism in most of these markets. And the day's futures in Europe and the United States also appear to be pointing upwards, in what could be a much less dramatic Tuesday.
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