 "A trader works as a television screen shows news about US President Donald Trump's trade and tariff policies, on the floor of the New York Stock Exchange (NYSE) at the opening bell on April 10, in New York City. AFP")
Stock markets around the world went up after Donald Trump said he might ‘significantly’ lower tariffs on China amid an ongoing trade war.
Trump’s recent comments were more relaxed compared to earlier tough talk from the White House, which had made investors nervous. Speaking to reporters in Washington, he said he planned to be “very nice” to China during trade talks. He also said that if a deal is reached, tariffs could be reduced on both sides—“substantially,” though not completely.
In Asia, markets responded positively: Japan’s Nikkei rose nearly 2 per cent, Hong Kong’s Hang Seng went up 2.4 per cent, and South Korea’s Kospi gained 1.6 per cent.
The market rally continued in Europe on Wednesday morning. The UK’s FTSE 100 went up by 1.6 per cent, Italy’s FTSE MIB rose 1.1 per cent, Germany’s Dax climbed 2.6 per cent, and France’s Cac gained 2.1 per cent.
In the US, stocks also opened strong. The Dow jumped over 800 points, and the Nasdaq Composite rose more than 3 per cent. Although the rally slowed later in the day, all major US markets still ended higher.
Also on Wednesday, US Treasury Secretary Scott Bessent struck a hopeful tone about China during a speech in Washington DC. He said China “knows it needs to change,” hinting at a possible shift in trade relations.
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More Shorts“If China is serious on less dependence on export-led manufacturing growth and rebalancing toward a domestic economy. let’s rebalance together,” Bessent said. “This is an incredible opportunity.”
“‘America First’ doesn’t mean America alone. It actually calls for stronger cooperation and mutual respect between trade partners,” Bessent added.
Earlier, Trump said he had no intentions of firing Jerome Powell, the head of the US Federal Reserve. This came a day after markets fell when Trump called Powell a “major loser.” Investor confidence got a boost after the remarks, leading to a major rebound in the markets.
Trump has often criticised Powell for not cutting interest rates. Last week, he even suggested he might remove him before his term ends in May next year. On his social media platform, Truth Social, Trump wrote that Powell’s removal “could not come fast enough” after Powell warned that trade tariffs could hurt the US economy.