Trump Tariffs Highlights: US consumer sentiment plummets to 1952 levels as trade war with China continues to escalate

U.S. stocks are climbing in shaky trading Friday as President Donald Trump’s trade war with China escalates further and U.S. households get more worried about it. Gold’s price is rising, the U.S. dollar’s value is falling and other financial markets are also swinging in indications of fear about where the U.S. economy will ultimately fit in the world’s.The S&P 500 was up 1.4% in afternoon trading, but only after veering repeatedly between earlier gains and losses. The Dow Jones Industrial Average was up 456 points, or 1.2%, as of 12:57 p.m. Eastern time, and the Nasdaq composite was 1.6% higher. Both also swung earlier, with the Dow going from a loss of nearly 340 points to a gain of nearly 500 points. The shaky trading came after China announced Friday that it was boosting its tariffs on U.S. products to 125% in the latest tit-for-tat increase following Trump’s escalations on imports from China. The repeated U.S. tariff increases “on China has become a numbers game, which has no practical economic significance, and will become a joke in the history of the world economy,” a Finance Ministry spokesman said in a statement announcing the new tariffs.

Soaring consumer inflation expectations, driven to a level not seen since the early 1980s, coupled with jittery markets and rising U.S. Treasury yields on Friday amplified the Federal Reserve’s dilemma in determining whether the economy is facing a new price shock or headed for a downturn.

With households, businesses, and global investors adjusting fast to the implications of President Donald Trump’s aggressive import tariff policies, Fed policymakers said the outlook has grown increasingly difficult to predict as they took stock of recent market moves and an unsettling surge in consumer attitudes about upcoming inflation.

US Vice President JD Vance likely to visit India soon amid bilateral trade talks

The euro surged 1.12% to $1.136025, after hitting its highest since February 2022. It is on track for its biggest weekly gain since early March this year.

The single currency also rose 0.68% against the pound in a sign of its outperformance. The pound was up 0.65% against the dollar, at $1.30520.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.47% to 100.05 – hitting its lowest since April 2022. It is on track for its biggest weekly drop since early March this year.

Benchmark U.S. 10-year Treasury yields were on track for their biggest weekly increase in more than 43 years on Friday as U.S. President Donald Trump’s haphazard approach to tariffs prompted global market dislocations and forced selling.

Hedge funds and other asset managers offloaded bonds this week after getting margin calls and posting sharp losses from market volatility, analysts said. Leveraged investors in particular have been hurt by market whipsaws after Trump last week announced bigger-than-expected tariffs on trading partners, but then offered a 90-day pause for most countries on Wednesday.

Rumors of selling, or lack of buying, by foreign investors are adding to concerns over the market.

Gold blazed past the $3,200 mark on Friday, as a faltering dollar and an escalating U.S.-China trade war stirred recession fears, sending investors flocking to the safety of the yellow metal.

Spot gold was up 2% at $3,236.67 an ounce at 11:20 a.m. ET (1520 GMT), after hitting a record high of $3,243.82 earlier in the session. Bullion is up over 6% this week.

U.S. gold futures climbed 2.4% to $3,253.20.

Wells Fargo’s profit beat expectations in the first quarter as the bank cut costs and set aside less money to cover potential loan losses, but its CEO warned on Friday that U.S. tariffs risk slowing economic growth.

The U.S. bank’s shares extended losses, dipping 3.6%, after it reduced expectations for its net interest income, the difference between what it earns and pays in interest.

“We currently expect our full-year 2025 net interest income to be in the low end of the range,” Chief Financial Officer Michael Santomassimo told analysts. “Still early in the year, and clearly we are entering a period with more volatility.”

Wells Fargo reiterated its prior forecast that annual interest income would rise between 1% and 3%.

U.S. banks entered 2025 with a bullish outlook, backed by a resilient economy, resurgent dealmaking and business-friendly pronouncements from the Trump administration.

The optimism has unraveled as President Donald Trump’s fluctuating tariff announcements stoked concerns about inflation that could tip the U.S. economy into recession.

According to a Reuters update, US chipmakers that outsource manufacturing will be exempt from China’s retaliatory tariffs on U.S. imports.

“For all integrated circuits, whether packaged or unpackaged, the declared country of origin for import customs purchases is the location of the wafer fabrication plant,” the state-backed China Semiconductor Industry Association (CSIA), which represents the country’s largest chip companies, said in an “urgent notice” on its WeChat account.

According to a survey released by the University of Michigan, consumer sentiment plunged 11% this month to a preliminary reading of 50.8. This is the second-lowest reading on records going back to 1952. The reading for April was lower than anything seen during the Great Recession.

According to a Bloomberg update, Chinese airline Juneyao has delayed delivery of a Boeing 787 jet amid an escalating trade war.

“…there may be both new export opportunities and heightened import pressures from specific countries or product sectors. Exporters and importers experiencing such shifts are encouraged to share their inputs and suggest potential support measures. In this context, DGFT has operationalised a dedicated ‘Global Tariff and Trade Helpdesk’ to assist stakeholders in navigating emerging trade issues,” a government notice said.

Shipments of seven rare earths placed on an export control list last week by Beijing have ground to halt, three sources said, raising the risk of shortages overseas as Chinese exporters begin the long, uncertain wait for government licenses.

Shipments stopped on April 4, the sources familiar with the matter said, when Beijing restricted the export of seven rare earths and related material used across the defense, energy and automotive industries as part of its retaliation against U.S. President Donald Trump’s tariff hikes on Chinese goods.

Exporters must now apply to the Ministry of Commerce for licenses, a relatively opaque process that can range from six or seven weeks to several months. Reuters reported last month there had been no antimony exports to European Union countries since China put the metal on a control list in September.

(via Reuters)

“We are developing retaliatory measures,” CNN quoted Ursula von der Leyen as saying.

This could potentially include taxing the digital advertising revenues of companies like Meta, Google and Facebook.

“There’s a wide range of countermeasures… in case the negotiations are not satisfactory.”

The dollar continued to tumble on Friday, hitting its lowest in a decade against the Swiss franc and sending the euro above $1.14, as the fallout from U.S. tariffs continued to undermine the dollar’s status as a safe haven in times of stress.

“I think we’re very close, if not in, a recession now,” BlackRock CEO Larry Fink told CNBC.

According to a CNN update, the US has repeatedly told China that President Xi Jinping should request a call with US President Donald Trump. Beijing was also reportedly warned against retaliating in the private talk hours before new retaliatory tariffs were announced.

“We are doing really well on our TARIFF POLICY. Very exciting for America, and the World!!! It is moving along quickly. DJT” he wrote on a Truth Social post.

JPMorgan Chase topped first-quarter profit estimates on Friday, driven by record equities trading and higher fees from debt underwriting and merger advisory.

CEO Jamie Dimon, however, remained circumspect on the economy as corporate America navigated the fallout of President Donald Trump’s tariffs, which have raised inflationary risks and fears of recession.

“Clients have become more cautious amid an increase in market volatility driven by geopolitical and trade-related tensions,” Dimon said. “The economy is facing considerable turbulence, including geopolitics.”

Wall Street’s main indexes were set to open higher on Friday following earnings from big banks including JPMorgan, while markets also assessed the latest escalation in the trade war with China increasing its tariffs on U.S. imports to 125%.

At 08:47 a.m. ET, Dow E-minis were up 142 points, or 0.36%, S&P 500 E-minis were up 18.25 points, or 0.34%, and Nasdaq 100 E-minis were up 65 points, or 0.35%.

Amid the volatility, all three major Wall Street indexes are set for robust weekly gains, with the Nasdaq set for its best weekly showing so far this year.

Most megacap and growth stocks were higher after initial losses in premarket trade, with gains in Apple, Nvidia and Amazon.com.

“Given that American goods are no longer marketable in China under the current tariff rates, if the US further raises tariffs on Chinese exports, China will disregard such measures,” according to the statement.

With tariffs at levels now set to halt most all trade between the world’s biggest economies, the concern now is that the economic fight could spill into other areas of the relationship. Trump and Xi are locked in a standoff over who will move to deescalate first: Trump has said he’s “waiting” for a call from Beijing, while Chinese officials have repeatedly said they’re open to negotiations but won’t be bullied into talking.

European Trade Commissioner Maros Sefcovic is to travel to Washington on Sunday and will hold talks with U.S. officials on Monday with the aim of reaching a deal on tariffs, an EU spokesperson said.

U.S. President Donald Trump on Wednesday announced a lowering of hefty duties he had just imposed on the European Union and dozens of other countries. The EU said on Thursday it would pause counter-tariffs.

“The trade commissioner is going to Washington to try and sign deals. That is what we are focused on,” European Commission trade spokesperson Olof Gill told Ireland’s RTE radio on Friday.

“All options are on the table should that not lead to a good outcome,” he added.

US. Trade Representative Jamieson Greer said he will speak to his Taiwanese counterpart on Friday about tariffs after holding a long discussion with the Vietnamese earlier.

Greer said he expected to speak with Israelis on tariffs in the coming days, after US President Donald Trump temporarily lowered the hefty duties he had just imposed on dozens of countries. “I have a full dance card,” he said in an interview with Fox News.

US Energy Secretary Chris Wright says China’s decision to raise tariffs on US goods to 125% shows the nations are in the midst of a negotiation.

“We are right in the midst of a negotiation. This is home territory for President Trump. We are in the midst of it right now, but I am optimistic about where we are going,” Wright said during an interview with Bloomberg Television.

French Prime Minister Francois Bayrou said it was naive and dangerous to think China can replace the United States as a trade partner, and urged European Union (EU) members to stick together in the current climate of global trade tensions.

“The idea that the United States could be replaced by China is a terribly dangerous idea,” Bayrou told reporters on Friday during a visit to a fair for cheese and wine.

Tariffs of 10% that remain after U.S. President Donald Trump’s decision to temporarily suspend higher duties are a blow to the global economy and the economic outlook is becoming more unpredictable, European Union Commissioner for the Economy Valdis Dombrovskis said on Friday.

“We should not forget that the 10% reciprocal tariffs remain in place or for almost all countries and they represent a blow to the global economy,” Reuters quoted him as saying during a press conference in Warsaw.

US stock index futures swung between gains and losses on Friday after China increased its tariffs on U.S. imports to 125% in the latest escalation of the ongoing trade war, with markets keenly awaiting bank earnings later in the day.

At 05:52 a.m. ET, Dow E-minis were up 78 points, or 0.2%, S&P 500 E-minis were up 18.5 points, or 0.35%, and Nasdaq 100 E-minis were up 81.5 points, or 0.44%.

Most megacap and growth stocks edged higher after initial losses in premarket trade, with Apple, Nvidia and Amazon.com all marginally higher.

Investors fled to traditional safe-haven assets such as gold , which jumped to a record high. Safe-haven currencies such as the Japanese yen and Swiss franc also strengthened against the dollar.

The rally in the precious metal lifted gold miners, with Newmont and U.S.-listed shares of Barrick Gold rising 3.5% and 2.8%, respectively.

Treasury yields remained elevated after a steep bond selloff earlier this week. The yield on the 10-year note was at 4.38%, hovering near its February highs.

Chinese bourses have set daily restrictions on net share sales by hedge funds and large retail investors, four sources said on Friday, as Beijing steps up support for its stock markets in an intensifying trade war with the United States.

Two investor sources said a soft limit on daily net sales by individual hedge funds and big retail investors – implemented through verbal warnings from brokerages – had been set at 50 million yuan ($6.83 million).

Failure to comply risked a suspension of trading accounts by the stock exchanges, which have issued the directive, two brokerage sources said.

(via Reuters)

Chinese Foreign Minister Wang Yi flagged the “turbulent and chaotic” global situation during an interaction with the Director General of the International Atomic Energy Agency on Friday.

“One important reason is that some major powers are superstitious about strength first and their own country first, and engage in unilateral bullying. Recently, the United States has been wielding the tariff stick everywhere, openly putting its own interests above the common interests of all countries, and blatantly ignoring the multilateral trading system and established rules. The international community cannot let it go, the United States cannot act arbitrarily, and the wheel of history cannot go backwards,” an update from the Chinese Foreign Ministry quoted him as saying.

The Trump administration was quick in responding to what was tabled for a bilateral trade pact with India and New Delhi is geared up for a “very high” degree of urgency in concluding trade deals with the US and the European Union, External Affairs Minister S Jaishankar said on Friday.

In an interactive session at the Global Technology Summit, Jaishankar said the US under President Donald Trump has fundamentally changed its approach to engaging with the world and it has consequences across every key domain, especially in the technology sector.

Jaishankar’s remarks come as Trump’s policy on tariffs has triggered massive trade disruptions and fears of a global economic recession.

Japanese Prime Minister Shigeru Ishiba set up a task force to oversee trade negotiations with the United States on Friday. It will be headed by his close aide and Economy Minister Ryosei Akazawa, who domestic media said will visit Washington next week.

Akazawa will meet US Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer for U.S. tariff talks on April 17, public broadcaster NHK reported on Friday.

While offering no specific date, Akazawa said earlier that he hopes to meet his counterpart as soon as possible to kick off bilateral trade talks that may include currency policy.