Asian and European markets fought for recovery on Tuesday, April 8, after a tariff-fueled collapse the previous day. US President Donald Trump’s warning of more measures against China heightened concerns of a spiraling trade war. Global equities have plummeted since the US unveiled sweeping levies, sparking talk of a global recession.
Investors sought to recoup losses as they weighed the possibility of Washington tempering some tariffs. Tokyo rose 6% after Japanese Prime Minister Shigeru Ishiba held talks with Trump, while Beijing warned that China would “fight to the end” against further tariffs.
Trump threatened to impose extra levies if China didn’t heed his warning, prompting China’s Foreign Ministry spokesman Lin Jian to say “pressure, threats and blackmail are not the right way to deal with China.” Despite turmoil, investors picked up beaten-down stocks in Tokyo, Hong Kong, and Mumbai. Shanghai advanced 1.6% after China’s central bank backed a major state-backed fund.
The US-China trade war has raised concerns about a global recession and put pressure on the Federal Reserve to decide whether to cut interest rates or keep them elevated to control inflation. Markets continue to watch as tensions rise between the two economic superpowers.
Source: https://www.lemonde.fr/en/economy/article/2025/04/08/markets-stage-mild-rebound-but-trump-tariff-uncertainty-reigns_6739958_19.html