This report is from today’s TNC’s Daily Open, our international markets update. TNC Daily Open keeps investors informed on everything they need to know, no matter where they are.
There are several types of trade obstacles, tariffs being only one example. Other challenges include onerous licensing procedures, export limitations, and shipping fines.
On Tuesday, Nvidia said that it will pay $5.5 billion to cancel semiconductor exports to China due to new licensing regulations from the US government. Beijing has increased antitrust inspections of U.S. companies and imposed export curbs on rare earth elements in response to Trump’s tariffs. The Trump administration has been considering levying taxes on container ships built in China that dock at American ports.
The World Trade Organization predicted a 0.2% drop in global trade in 2025 and cautioned on Wednesday that the picture had “deteriorated sharply” in light of such developments. Shipping ships from China are already postponing their trips, so this isn’t just scare tactics.
The stock market has also gotten worse. U.S. stocks dropped on Wednesday as investors remained uneasy due to Nvidia’s export limitations. The assault of U.S. President Donald Trump’s tariffs severely hurts trade in all circumstances.
What To Note Today
Asia Markets Diverge from Wall Street Cues
Asian stocks mostly moved higher on Thursday, bucking the trend on Wall Street. South Korea’s Kospi gained nearly 1% after the country’s central bank left interest rates unchanged at 2.75%, as expected. Japan’s Nikkei 225 also saw a boost of about 1.2%, despite weaker-than-forecast export data. Japan’s exports grew by 3.9% in March, falling short of estimates and a sharp drop from the 11.4% surge seen in February.
Powell Flags Conflict in Fed’s Mandate
Federal Reserve Chair Jerome Powell acknowledged a growing challenge for the central bank on Wednesday, saying its dual objectives—price stability and maximum employment—may be pulling in different directions. He highlighted concerns that recent tariff proposals, particularly those from former President Trump, could undermine both goals. “Tariffs could push us further away from what we’re trying to achieve,” Powell noted during a Q&A session.
WTO Sounds Alarm on Global Trade Outlook
The World Trade Organization (WTO) has issued a bleak update on global trade, citing rising tariffs and growing policy uncertainty as major concerns. In its latest “Global Trade Outlook and Statistics” report, the WTO revised its 2025 forecast downward. It expects global merchandise trade volumes to shrink by 0.2%, even accounting for a temporary 90-day pause in retaliatory tariffs.
Shipping Slowdown from China Raises Concerns
A wave of canceled cargo shipments from China is hitting U.S. companies. According to logistics firm HLS Group, there have already been 80 blank sailings—canceled freight trips—out of China. This slowdown in container traffic is expected to ripple through North America’s economy, affecting everything from port operations to warehousing and transportation services.
TSMC Surpasses Q1 Earnings Expectations
Chip giant Taiwan Semiconductor Manufacturing Company (TSMC) posted stronger-than-expected earnings for the first quarter 2025. Net income soared 60.3% year-over-year to NT$361.56 billion ($11.1 billion), while revenue jumped 41.6% to NT$839.25 billion. The company continues to benefit from surging demand for AI-related chips. However, its future growth could be at risk if new tariffs from the U.S. impact global tech trade.
Despite Weakness, Piper Sandler Remains Bullish on U.S. Dollar
The U.S. dollar took a hit last week, with the dollar index dropping to its lowest level since April 2022. The decline came amid growing uncertainty fueled by renewed tariff threats from former President Donald Trump. Typically considered a safe-haven asset during market volatility, the dollar’s weakening has sparked some concern among investors.
Despite this downward trend, investment firm Piper Sandler maintains a positive outlook on the greenback. The firm believes the dollar will remain resilient in the long run, supported by its foundational role in global finance and trade, even as short-term pressures persist.
Other News
China Shifts Focus from Tariffs to U.S. Services in Trade Retaliation
In a surprising move, China has signaled it is done responding directly to U.S. tariff hikes on goods. Officials in Beijing dismissed Washington’s continued tariff threats as “meaningless” and indicated that further increases would be treated as irrelevant.
Rather than escalating tariffs on goods, China is now pivoting to target other areas of the U.S. economy, particularly the services sector. Beijing has begun introducing non-tariff barriers, including tighter export controls on rare-earth materials and launching new antitrust investigations into American firms operating in China.
Analysts say this strategy shift could significantly expand the scope of the trade conflict. The U.S. has long maintained a large surplus in services trade with China—spanning industries such as legal consulting, finance, and tourism—making it a strategic target for Beijing’s retaliation. This development suggests the trade tensions are entering a new and more complex phase.
