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.
President Donald Trump of the United States extended his tariff freeze to include goods entering from Canada and Mexico, provided that they meet the requirements of the U.S.-Mexico-Canada Agreement, which is a trade agreement between all nations.
Investors weren’t relieved this time, compared to Trump’s respite for automakers on Wednesday, which caused stocks to rise. With the Nasdaq Composite limping into correction territory and losing its post-election Trump spike, the main U.S. benchmarks fell.
This could be because, despite acknowledging and downplaying the effects of tariffs, the Trump administration appears to be stepping up its efforts to impose them.
While U.S. Treasury Secretary Scott Bessent waved away the notion of “cheap goods” as essential to the “American dream,” Trump dismissed the notion that he is keeping an eye on the markets, frustrating investors who were betting on the “Trump put,” the notion that the current president would avert a sharp decline in the stocks.
What To Note Today
Pausing Tariffs On Specific Goods
A White House official told reporters Thursday that U.S. President Donald Trump’s 25% tariffs on Canada and Mexico will temporarily exempt goods that comply with the USMCA, a North American trade agreement, from being subject to the duties, according to another official, that accounts for about 38% of imports from Canada and 50% from Mexico. The reprieve is scheduled to end on April 2.
China’s Export Growth Slows
China’s exports increased by 2.3% in U.S. dollars from January to February compared to last year’s period, which was much less than the prediction in the Reuters poll, which predicted a 5% increase. Additionally, it is significantly less than the growth of 10.7% in December. Separately, China’s Foreign Affairs Minister Wang Yi stressed that the two nations will remain a part of the world for a long time and that “peaceful coexistence” is necessary, saying that the United States should not impose “arbitrary tariffs” or reciprocate goodwill with animosity.
The US establishes a Strategic Bitcoin Reserve
On Thursday, Trump established a Strategic Bitcoin Reserve by signing an executive order. In a post on X, White House crypto and AI czar David Sacks stated that bitcoin recovered in criminal and civil forfeiture cases will be the only source of funding for the reserve. The order also creates a Treasury Department-managed U.S. Digital Asset Stockpile to store further seized cryptocurrency. When investors learned that the United States had no plans to buy bitcoin, the cryptocurrency price dropped as low as $84,688.13 on the news.
Trump Claims He Isn’t Even Considering The Market
Trump claimed he’s “not even looking at the market” when asked on Thursday if the stock market influenced the decision to halt tariffs on some goods from Canada and Mexico temporarily. “The United States will be very strong with what is happening here in the long run,” he continued. Trump also attributed recent stock market declines to “globalist nations and businesses that won’t be doing well.”
The US Treasury Secretary Rejects “Cheap Goods”
“Access to cheap goods is not the essence of the American dream,” stated U.S. Treasury Secretary Scott Bessent Thursday in a speech to the Economic Club of New York. He said that Trump views tariffs as having three advantages: they provide the government with income, shield people and businesses from unfair practices globally, and serve as “the third leg to the stool” since Trump “uses it for negotiating.”
More Layoffs Than In The Time Of The Pandemic
According to a report released Thursday by outplacement agency Challenger, Grey & Christmas, U.S. firms declared 172,017 layoffs for February, a 245% increase from the previous month and the largest monthly total since July 2020 during the Covid epidemic. With Trump’s approval, entrepreneur Elon Musk worked to reduce the number of federal employees, accounting for more than one-third of the total. Challenger estimated that there were 62,242 federal job cutbacks in all.
Markets Become Weary Of Tariff Adjustments
Due to the weariness of tariff flip-flops, U.S. stocks fell on Thursday. The Dow Jones Industrial Average dropped 0.99%, while the S&P 500 dropped 1.78%. The Nasdaq Composite fell 10% from a recent peak, plunging 2.61% to reach correction territory. The tech-heavy index has likewise erased all of its post-election gains. Asia-Pacific markets fell Friday along with Wall Street. As long-term Japanese government bond yields increased to their highest level since 2008, the Nikkei 225 fell 2.25%.
European Central Bank Cuts Rates
The European Central Bank (ECB) lowered interest rates by 25 basis points on Thursday, signaling a shift toward a “meaningfully less restrictive” policy. The cut brings the ECB’s key deposit facility rate to 2.5%, a widely expected move. ECB President Christine Lagarde noted that while no Governing Council members opposed the decision, one central bank governor abstained.
Semiconductor ETF Hits Troubling Pattern
The semiconductor sector has had a rough start in 2025. An ETF tracking major chipmakers has dropped double digits over the past month, starkly contrasting its 38.5% surge in 2024. The ETF’s latest movement has formed a concerning chart pattern—the first in over two years—raising fears of further declines.
Bottom Line
Global Bond Sell-Off as Markets React to Tariffs and Germany’s Policy Shift
Government borrowing costs surged worldwide on Thursday. German bond yields jumped on Wednesday, with the 10-year bund yield—a key eurozone benchmark—spiking about 30 basis points before stabilizing.
Deutsche Bank strategist Jim Reid noted that Germany’s political shift has driven increased risk-taking in European markets. “Markets are pricing in a once-in-a-generation policy change, fueling a major risk-on move for European assets,” he said.
