Trump tariffs updates: Global markets rebound, recession concerns linger

World markets won a reprieve on Tuesday after three days of heavy selling that wiped trillions of dollars off the value of shares, but the mood was cautious with a focus on whether Washington might negotiate on some of its aggressive tariffs, Reuters reported.

Asia stocks bounced off 1-1/2 year lows, European shares opened broadly higher and U.S. stock futures pointed to a positive open for Wall Street where shares fell to their lowest in over a year on Monday, before steadying.

U.S. 10-year Treasury yields were steady after posting their biggest one-day jump in a year on Monday and the dollar, which has taken a beating from the tariff turmoil, remained weak against other major currencies.

"The mood is a little brighter, at least if you are looking at certain markets such as Japan which might be a priority for trade deal but there is lots of uncertainty," said Chris Scicluna, head of economic research at Daiwa Capital Markets in London.

"Markets could continue to be extremely volatile."

Malaysian Prime Minister Anwar Ibrahim announced on Tuesday that Malaysia will send a delegation to Washington to initiate discussions on U.S. trade tariffs.

While acknowledging that there may be limited room "to revisit the underlying intent" of the tariffs, Anwar said there was still scope to adjust the policy's implementation.

"We do not believe in megaphone diplomacy," Anwar told an investment conference.

"As part of our soft diplomacy of quiet engagement... we will be dispatching together with our colleagues in ASEAN (Association of Southeast Asian Nations) our officials to Washington to begin the process of dialogue," said Anwar, whose country currently chairs the bloc.

The 10 ASEAN member states, which count on the United States as their main export market, were among those hardest hit by Trump's levies.

"Malaysia's trade with the United States has long been a model of mutual gain. Our exports support not just growth here but high-quality jobs across the United States," Anwar said.

"This commercial relationship has served both countries well, but these measures may end up harming all."

The investment conference Anwar addressed is part of a series of events lined up ahead of a meeting of ASEAN economics and finance ministers and central bank governors in the Malaysian capital of Kuala Lumpur this week to discuss how to respond to the U.S. tariffs.

Anwar stressed that while engaging in talks with the United States, ASEAN members must simultaneously continue diversifying and boosting ties with major markets in Asia, Europe, the Middle East and Africa.

"The Trump tariffs are not the first challenge to multilateralism, nor will they be the last," he said.

From Apr 5, every Malaysian product shipped to the U.S. will face at least a 10% duty and from Apr 9, most products will face a 24% rate, with some exemptions.

China on Tuesday accused the United States of "pressure, threats and blackmail" after President Donald Trump floated additional tariffs of 50% on the world's second-largest economy, as reported by AFP.

"Tariff wars have no winners, and protectionism has no way out. Chinese people don't make trouble, but are not afraid of it. Pressure, threats and blackmail are not the right way to deal with China," foreign ministry spokesman Lin Jian said.

Apple shares continued to tumble on Monday amid growing worries that President Donald Trump's tariffs will significantly impact the company.

They have plunged 19% over the last three trading days, erasing US$$638 billion from its market value, CNBC reported.

The Apple logo at a store in the electronics market in Shenzhen, China, April 2024. Photo by VnExpress/Luu Quy

Overall, the S&P 500 and the Dow closed lower on Monday after a roller coaster session, according to Reuters.

In individual stocks, the S&P's biggest drags were Apple Inc, down 3.7%, and Tesla, which fell 2.6%. Its biggest boosts came from Nvidia, up more than 3%, and Amazon, which added 2.5%.

Trump’s sharp tariff hikes last week have sent the stock market into a tailspin, raised alarm bells among Wall Street executives, and heightened many economists’ worries that the U.S. could tip into recession, according to AP.

Economists at Goldman Sachs have raised their assessment of the odds the U.S. will experience a recession — where the economy shrinks and unemployment rises — to 45%, from 35% last week. And even that forecast assumes many of the duties are negotiated away or reduced. If not, "we expect to change our forecast to a recession," Jan Hatzius, Goldman’s chief economist, and his colleagues said in an analyst note.

Other economists are raising similar alarms, with JPMorgan putting the odds of a recession at 60% and projecting inflation will reach 4.4% by the end of this year, up from 2.8% currently.

Should the tariffs remain in place for an extended period, they will likely raise costs and uncertainty for businesses, which could reduce their willingness to hire, invest in new equipment or software, or expand into new markets. Americans could cut back on their spending in the face of higher prices. The economy could start to shrink, after expanding 2.8% in 2024.

There have been no signs yet that a recession is imminent. But one development that has sparked widespread fear is a real-time economy tracker maintained by the Federal Reserve’s Atlanta branch. It now indicates that the economy could shrink by 0.8% at an annual rate in the first three months of this year, down from 2.4% in last year’s final quarter.

The clearest signal of a recession would be a steady rise in job losses and a surge in unemployment. The government’s weekly report on the number of people seeking unemployment benefits, which is released every Thursday, is being closely watched for signs of rising layoffs. So far, applications for aid remain quite low by historical standards.

Torsten Slok, chief economist for Apollo, an asset management firm, is watching a range of real-time data and sees some signs the economy is weakening. The number of people filing for bankruptcy has risen, while visits to Las Vegas have declined a bit. Weekly visits to movie theaters this year are below their levels in recent years, he said.

Trump said on Monday he was not looking at a pause on tariffs to allow for negotiations with trading partners but said he would talk to China, Japan and other countries about the duties, Reuters reported.

Asked during a White House press availability with Israeli Prime Minister Benjamin Netanyahu if he was open to pausing tariffs, Trump said: "Well, we're not looking at that. We have many, many countries that are coming to negotiate deals with us and they're going to be fair deals. And in certain cases they're going to be paying substantial tariffs. There'll be fair deals."

Asian markets battled Tuesday to recover from the previous day's tariff-fuelled collapse, AFP reported.

While uncertainty rules, investors in most markets took the opportunity to pick up some beaten-down stocks.

A display shows the sharp rising of the Nikkei average stock price on the rebound in Chuo Ward, Tokyo on April 8, 2025. Photo by The Yomiuri Shimbun via AFP

In Tokyo, Nippon Steel piled on around 11% after Trump launched a review of its proposed takeover of US Steel that was blocked by his predecessor Joe Biden.

Hong Kong gained more than two percent but was well off recouping Monday's loss of more than 13% that was the biggest one-day retreat since 1997. Sydney, Seoul, Wellington and Manila also rose.

Shanghai was also up Tuesday after China's central bank promised to back major state-backed fund Central Huijin Investment in a bid to maintain "the smooth operation of the capital market".

Others however were not as fortunate. Taipei shed more than 4% to extend the previous day's record loss of 9.7%, while Singapore also suffered further selling.

Trading in Jakarta was suspended soon after the open as it plunged more than 9% percent as investors returned from an extended holiday, while the bourse in Vietnam -- which has been hit with 46% tariffs -- shed 5%.

China said Tuesday it would "fight to the end" and take countermeasures against the United States to safeguard its own interests after President Donald Trump threatened an additional 50% tariff on Chinese imports.

The Commerce Ministry said the U.S.‘s imposition of "so-called ‘reciprocal tariffs’" on China is "completely groundless and is a typical unilateral bullying practice."

China has taken retaliatory tariffs and the ministry hinted in its latest statement that more many be coming, according to AP.

"The countermeasures China has taken are aimed at safeguarding its sovereignty, security and development interests, and maintaining the normal international trade order. They are completely legitimate," the ministry said. "The U.S. threat to escalate tariffs on China is a mistake on top of a mistake and once again exposes the blackmailing nature of the US. China will never accept this. If the US insists on its own way, China will fight to the end."

Trump’s threat came after China said it would retaliate against U.S. tariffs he announced last week.

"If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th," Trump wrote on Truth Social. "Additionally, all talks with China concerning their requested meetings with us will be terminated!"

If Trump implements his new tariffs on Chinese products, U.S. tariffs on Chinese goods would reach a combined 104%.