Scott Bessent is speaking to the press now and has said Trump “goaded China into a bad position.” China will now face even more punitive tariffs while the rest of the world can negotiate form 10% tariffs.
It appears Bessent ‘won’ a skirmish in the White House with trade hawks like Peter Navarro.
Trump just announced a 90-day pause on reciprocal tariffs for many countries.
Some, like China, that have retaliated will be excluded. The Nasdaq is up 8.4% on the news.
While the broad market erased the gains made when trading started, the Magnificent Seven still is holding on, with Roundhill Mag 7 ETF (MAGS) up 1.53% as of 11:50 am. Apple (+3.94%) is leading the way and pulling the Nasdaq higher today followed by NVIDIA ( +2.56%) and Microsoft ((+2.12%).
Tariffs are not only affecting the stock market this week. The 10 year treasure yield has been soaring over the past few days. Monday the yield for a 10 year note was 3.88%, but the yield is not approaching 4.40% as of 10.40 am.
After 104% tariffs went into effect on China this morning, the European Union Commission announced it will impose countermeasures against the United States that will commence on April 15th. The measure would be around $24.3 billion on products like soybeans, orange juice and motorcycles.
Live coverage has ended. The full story is below.
If you thought yesterday’s market action was wild, prepare for more of the same today. After President Trump imposed additional tariffs on China yesterday that brought the total import duties on the country up to 104%, China just retaliated with new tariffs of its own, hiking them an additional 50% for a total of 84% on American goods.
Beijing says it is willing to “fight to the end” in this trade war and it looks like markets are bracing for the worst.
Dow Jones Industrial Average opened .24%, while futures for the S&P 500 and Nasdaq are up slightly at open. The Roundhill Magnificent Seven ETF (MAGS) is up 1.90%
All of the Magnificent 7 stocks took it on the chin yesterday, but Apple (NASDAQ:AAPL | AAPL Price Prediction) was the biggest loser, falling 5%, followed by Tesla (NASDAQ:TSLA) dropping 4.9% and Amazon (NASDAQ:AMZN) 2.6%.
So far, though, trading shows the tech stocks pretty much shrugging off the latest announcement with the entire group except Microsoft (NASDAQ:MSFT) moving higher in early trading.
While Apple is obviously closely tied to the China trade, its stock swung from being down to moving up 3.11% heading into the morning bell. Tesla is up 4%, Amazon is 2% higher, and Nvidia (NASDAQ:NVDA) is jumping 4%
Apple has been scrambling to shift manufacturing away from China as quickly as possible and The Wall Street Journal reported it would be moving as much manufacturing as it could to India.
While India is also getting hit with new tariffs from Trump, at 27%, they are far more manageable than the doubling of rates China just got hit with. The iPhone, which makes up half of Apple’s revenue, is primarily sourced from China and the rising trade tensions that suddenly opened up into a “hot war” with tariffs has seen AAPL stock plummet. Shares are down 31% year-to-date, but they’ve lost 22% of their value in just the last week.
Trump said yesterday he thinks the iPhone can be wholly built in the U.S. because “we have the labor, we have the workforce, we have the resources” to do so. But such shifts can’t happen overnight and in fact take several years. Also, it would raise the cost of an iPhone due to the higher labor costs.
With China also imposing new export restrictions on rare earth minerals, manufacturing the iPhone domestically could become more difficult. Rare earth minerals are only a small fraction of the iPhone, but they play critical roles in its speakers, Taptic Engine, and color display. Apple, though, has moved to use 100% recycled rare earth elements in its smartphone.
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After two decades of patrolling the dark corners of suburbia as a police officer, Rich Duprey hung up his badge and gun to begin writing full time about stocks and investing. For the past 20 years he’s been cruising the markets looking for companies to lock up as long-term holdings in a portfolio while writing extensively on the broad sectors of consumer goods, technology, and industrials. Because his experience isn’t from the typical financial analyst track, Rich is able to break down complex topics into understandable and useful action points for the average investor. His writings have appeared on The Motley Fool, InvestorPlace, Yahoo! Finance, and Money Morning. He has been featured in both U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, and USA Today.
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