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.
In addition to initiating his trade campaign, U.S. President Donald Trump was the first to flinch in his tariff war.
Late on Tuesday, Trump declared that the 145% tariff on Chinese goods that is currently in place is “very high, and it won’t be that high.” It won’t be nearly that high, sorry. It will drop significantly. However, it won’t be zero. Despite the lack of official negotiations, the president’s more tactful remarks on China contrasted sharply with his more aggressive statements earlier in April.
China has welcomed the discussions but has not made any concessions. China’s stance on the U.S.-initiated tariff war is very clear: We are not scared of fighting, but we don’t want to. Guo Jiakun, a spokesman for the Foreign Ministry, stated on Wednesday that “if we fight, we will fight to the end; if we talk, the door is wide open.”
Following the softer approach, markets then recovered; however, given the White House’s rhetorical swings, we could be in for another bout of whiplash if Trump decides to change his mind.
What To Note Today
Bessent Sees Major Trade Deal Potential Between U.S. and China
U.S. Treasury Secretary Scott Bessent has hinted at a breakthrough in U.S.-China trade relations, saying both nations have a chance to strike a major deal. His remarks follow Trump’s recent softening on tariff threats, suggesting rates won’t reach the proposed 145%.
Google Pressures Remote Workers to Return or Risk Layoffs
Google is tightening its return-to-office policy, warning some remote employees that they must adopt hybrid schedules or face job cuts. Internal memos reveal that prior remote approvals may no longer guarantee job security.
States Challenge Trump’s Tariff Policy in Court
Twelve U.S. states have filed a lawsuit against President Trump, arguing that his new import tariffs are unconstitutional. New York Attorney General Letitia James claims the President is overstepping his authority by imposing taxes without Congressional approval.
IBM Tops Q1 Estimates Despite Profit Decline
IBM reported better-than-expected Q1 earnings and revenue, with a modest 0.6% revenue increase year-over-year. However, net income fell to $1.06 billion. The company reaffirmed its 2025 forecast of $13.5 billion in free cash flow and 5% revenue growth.
Stock Markets Rally on Easing Trade War Concerns
Markets surged on Wednesday on signs the U.S. may ease trade tensions with China. The Dow rose 1.07%, the S&P 500 gained 1.67%, and the Nasdaq jumped 2.5%. European markets followed suit, with the Stoxx 600 up 1.78%.
Trade Optimism Lifts Markets—But Will It Last?
Investor sentiment improved on hopes of reduced tariffs, fueling a two-day market rally. However, analysts warn that verbal reassurances may not be enough to sustain long-term gains without concrete policy changes.
EU Slaps Apple and Meta with $800M in Antitrust Fines
The European Commission fined Apple €500 million and Meta €200 million for violating digital competition rules. Apple was penalized for blocking developers from directing users to outside payment options, breaching the EU’s Digital Markets Act.
