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 Trump administration kicked off the weekend in the best possible way late Friday when it announced that electronics, including computers, smartphones, and semiconductors, would be temporarily free from its so-called “reciprocal” tariffs, which include the standard 10% charge on all nations.
Therefore, it appears that the 125% tariff that U.S. President Donald Trump imposed on Beijing will not apply to such imports from China (a 20% tariff will still apply). Tim Cook, the CEO of Apple, must be breathing a sigh of relief: According to Evercore ISI, the Cupertino-based corporation produces over half of Mac computers and almost 80% of iPads in China.
According to the results of the University of Michigan’s most recent poll, the news is also a comfort for customers who need a positive boost in their spirits. After all, tariffs harm more than just importers and corporations. Reddit users have complained that laptop prices have already skyrocketed. The preorder for the Nintendo Switch 2 was delayed.
Trump may remember the well-known Wall Street maxim: Don’t wager against American consumers.
What To Note Today
Tariff-Exempt Technology
According to U.S. Customs and Border Protection instructions released late Friday evening, U.S. President Donald Trump exempted laptops, smartphones, and other tech goods and components from his reciprocal tariffs. To further compound the confusion surrounding sudden policy changes, Trump and his advisors implied on Sunday that those exclusions will be partially or revoked in the upcoming weeks.
U.S. Markets Increase During A Week Of Volatility
Even though the Trump administration’s tariffs generated significant market instability, U.S. stocks rose Friday to close the week positively. The S&P 500 increased 5.7% for the current week, the Nasdaq Composite vaulted 7.3%, and the Dow Jones Industrial Average gained about 5%. Monday saw a rise in Asia-Pacific markets. Hong Kong’s Hang Seng Index surged more than 2%, leading gains in the region. The Nikkei 225 in Japan gained more than 1.6%.
American Consumers Are Quite Depressed
According to a University of Michigan study, consumer mood declined even more in April. Below the Dow Jones consensus expectation of 54.6, it reported a mid-month reading of 50.8, the lowest since June 2022 and the second lowest in the survey’s history dating back to 1952. Simultaneously, respondents’ expectations for inflation in the coming year increased from 5% in March to 6.7%, the highest level since November 1981.
Recession Is ImminentÂ
Larry Fink, the CEO of BlackRock, stated to CNBC on Friday that he believes “we’re very close, if not in, a recession now.” Fink, however, stated that he did not believe the United States was experiencing a financial crisis and that he anticipated “megatrends” such as artificial intelligence would continue. Ray Dalio, the founder of Bridgewater, expressed similar concerns on Sunday, stating that although the nation is “very close to a recession,” he is “worried about something worse than a recession” if the situation is not managed effectively.
China’s Exports Are Booming
Regarding U.S. dollars, China’s exports increased 12.4% in March compared to last year, the customs administration said Monday. That is the largest gain since October last year and far above the 4.4% growth predicted by Reuters’ poll. In March, imports decreased 4.3% compared to the same month last year, which was greater than the 2% reduction predicted by economists.
Singapore Lowers Its Growth Projection
Singapore’s Monetary Authority loosened its monetary policy on Monday for the second consecutive week. Additionally, the central bank reported that Singapore’s GDP grew 3.8% year over year in the first quarter, falling short of the 4.3% growth predicted by the Reuters poll.
In 2025, the Ministry of Trade and Industry revised its gross domestic product prediction from 1% to 3% to 0% to 2%.
Additional News
China calls on Trump to learn from his mistakes and pay attention to “rational voices” over reciprocal tariffs.
China’s Commerce Ministry encouraged U.S. President Donald Trump to “completely abolish” the reciprocal tariffs, which include a 145% charge on imports from China, and referred to the U.S. tariff exemptions as a “small step.”
In an online statement, the ministry stated, “We urge the U.S. to heed the rational voices of the international community and domestic parties, take a big stride in correcting its mistakes, and completely abolish the wrongful action of reciprocal tariffs,” as reported by The News Chronicles.
Trump’s recent exemptions from tariffs on tech imports are portrayed domestically as proof that American businesses cannot simply replace Chinese supply lines.
