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.
The tariffs that U.S. President Donald Trump imposed and then abruptly halted have caused governments worldwide to struggle with how to minimize the economic impacts. Ironically, however, tariffs may hurt American consumers.
Temu, a Chinese online retailer known for offering affordable goods, raised prices over the weekend, citing “import charges.” According to an analysis by Annie Palmer and Gabrielle Fonrouge of CNBC, those fees can eventually quadruple the cost of a typical transaction and even surpass the price of the commodities themselves.
The inability to acquire everyday basics is worse than price increases. According to the asset management company Apollo, when the effects of tariffs on China begin to ripple through the economy, some U.S. retailers may face empty shelves within a few weeks.
As U.S. Treasury Secretary Scott Bessent said, China indeed sends a lot more goods to the United States than it imports. However, that trading link implies that when China’s exports drop to a trickle, the American consumer would lose more.
What To Note Today
Global Markets See Modest Gains
U.S. markets had a mixed day Monday, with the S&P 500 edging up 0.06% and the Dow gaining 0.28%, while the Nasdaq slipped 0.1%. Asia-Pacific markets followed with minor gains Tuesday—South Korea’s Kospi rose 0.4% as auto stocks surged on reports of U.S. tariff cuts for automakers.
HSBC and Deutsche Bank Post Strong Q1 Results
European banks beat expectations: HSBC reported a massive 317% quarterly surge in pre-tax profits to $9.48 billion, alongside a $3 billion share buyback. Deutsche Bank also outperformed, reporting €1.775 billion in net profit—its strongest quarterly showing in 14 years.
China Denies Tariff Talks With U.S.
Tensions remain high as China’s foreign ministry dismissed claims of ongoing trade negotiations with the U.S. Treasury Secretary Scott Bessent responded by reiterating that the onus is on China to ease trade frictions.
Temu Imposes Hefty U.S. Import Fees
Chinese e-commerce platform Temu has added steep import charges—up to 145%—to U.S. orders, following the implementation of newly imposed Trump tariffs. The fees often exceed the price of the product itself.
IBM Unveils $150 Billion U.S. Investment Plan
IBM plans to invest $150 billion in the U.S. over five years, including $30 billion to bolster domestic production of mainframe and quantum computers. Microsoft echoed urgency, warning against falling behind China in quantum tech.
Canada’s Liberals Projected to Win
Prime Minister Mark Carney’s Liberal Party is expected to secure victory in Canada’s national elections, potentially maintaining a minority government. Analysts attribute anti-Trump sentiment to influencing public opinion against the Conservative opposition.
Big Tech Earnings in Focus This Week
Over 160 S&P 500 companies, including Apple, Meta, and Microsoft, are set to report earnings. Investors are closely watching for tariff-related guidance amid uncertainty that clouds corporate outlooks.
Stocks React to Trump’s Return
Trump’s policy shakeups—tariffs and budget cuts—have rattled U.S. markets, making this the worst S&P 500 performance in the first 100 days of a presidency since Nixon’s second term. CNBC data shows sharp gains and losses in specific stocks since the beginning of the year.
