Newscasts - Trump's tariff pause brings little relief as recession fears linger
11/04/2025 08:42
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_63d9ypf2&referenceId=tag:reuters.com,2025:newsml_RW595811042025RP1_930&pageId=Newscasts Source: 'Reuters - Business videos' Description: A week of turmoil unleashed by U.S. President Donald Trump's tariffs showed little sign of easing on Friday (April 11), with markets again tumbling and foreign leaders trying to work out how to respond to a dismantling of the world trade order. Julian Satterthwaite reports. Short Link: https://refini.tv/3Recynx Video Transcript: Donald Trump's move to postpone most of his new tariffs for 90 days seems to have brought only fleeting relief for markets. After a huge rally Thursday, Friday saw Asian stocks head lower again. Japan's Nikkei index closed down about 3% while South Korea's benchmark KOSPI index dropped about 0.5%. Markets in China fared better, however, with Hong Kong's Hang Seng index reversing early losses to gain 1% by midafternoon. That came amid reports of state funds stepping in to buy equities. The night before, Trump had indicated that he was open to negotiation. What happens with China? We would love to be able to work a deal. US Treasury Secretary Scott Bessent also tried to offer hope, saying over 75 countries wanted to start talks. On Friday, the US and Vietnam agreed to begin formal negotiations. Meanwhile, media reports said Japanese Prime Minister Shigeru Ishiba hoped to send a trade task force to Washington next week. But with Trump's total duties on China now at 145%, investors remain anxious that a global economic slowdown is coming. Investec Economist Ellie Henderson says markets also remain concerned by the volatility of Washington policy making. We would far from say that uncertainty is over. We may have a brief pause for now with this 90-day pause on reciprocal tariffs, but it's still not clear what the end game is for Mr. Trump in terms of tariffs and how countries will negotiate. I think uncertainty is definitely here to stay at least for the time being. Such worries saw money flow into traditional safe havens, with the Swiss Franc hitting 10-year highs against the Dollar on Friday. Gold also saw gains. But US government bonds, normally also a safe haven, sold off again. That has raised concerns of deeper trouble in the financial system with asset managers possibly forced to sell bonds to cover losses elsewhere.