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.
America needs America more than the world needs America, according to U.S. President Donald Trump’s “America First” philosophy, which prioritizes the country’s interests over those of other nations.
For the current quo, this might be the case. The World Trade Organization’s World Integrated Trade Solution database indicates that the United States is one of the world’s major exporters and the largest importer. Additionally, its policies are already having an impact: due to rising export prices to the United States, Chinese factories are struggling to fulfill their order books.
But something is changing. Nations are figuring out how to react to Trump’s patriotic actions.
The countries of Southeast Asia, which were hardest hit by Trump’s tariffs, are uniting to expand intraregional trade and diversify their export markets. After evaluating the seriousness of Trump’s threats, China appears prepared to increase its fiscal stimulus and is also entering new international markets.
Furthermore, it’s not as though the United States controls every facet of world politics. Critical minerals, such as nickel and copper, as well as a significant portion of the rare earth element supply chain, are controlled by China. Trump’s approval of deep-sea mining of those elements is an indication that China is catching up to the United States.
When it prompts other nations to adopt actions that would put the United States at a disadvantage, a “America First” policy could backfire.
What To Note Today
Asia Markets Edge Higher as U.S. Stocks Rally
Major U.S. indexes closed last week higher, with the S&P 500 posting its first four-day winning streak since January. The Nasdaq rose 1.26% while the Dow ticked up slightly. Despite a dip in U.S. futures Sunday night, Asia-Pacific markets opened positively Monday, with Japan’s Nikkei 225 gaining around 0.4%, led by Toyota shares surging 3.7% on acquisition rumors.
China Promises Economic Relief Amid Rising Global Pressures
China’s Politburo, chaired by President Xi Jinping, pledged new support for struggling businesses and suggested cutting interest rates to counter external shocks, especially as U.S.-China trade tensions escalate.
Chinese Factories Slow Production as U.S. Tariffs Bite
Manufacturers in China’s export hubs, such as Yiwu and Dongguan, are halting production and reducing their workforces due to declining U.S. demand, with firms now targeting Europe and Latin America for new business opportunities.
Trump Moves to Expand U.S. Deep-Sea Mining
President Trump signed an executive order to accelerate deep-sea mining, aiming to secure key minerals like nickel and rare earths amid concerns over China’s dominance in global supply chains.
Southeast Asia Strengthens Regional Trade Amid Global Tensions
Facing fallout from U.S. tariffs and trade wars, Southeast Asian countries are pivoting to bolster intra-regional trade and economic cooperation, rather than choosing between China and the U.S.
Earnings Season Heats Up with Tech Giants in Focus
More than 180 S&P 500 companies will report earnings this week, including major players such as Meta, Microsoft, Amazon, and Apple, making it the busiest week of the Q1 earnings season.
Indian Airlines Reroute Flights After Pakistan Airspace Ban
Pakistan’s airspace closure to Indian airlines has disrupted routes to Europe, North America, and the Middle East, resulting in longer flights and potentially necessitating additional refueling stops. However, fare hikes are expected to remain limited.
