Global stock markets experienced a significant rebound on Monday, buoyed by the U.S. administration’s decision to temporarily exempt certain Chinese electronics from steep import tariffs. This move provided a much-needed respite to investors concerned about escalating trade tensions between the world’s two largest economies.
In Asia, major indices posted notable gains. Japan’s Nikkei 225 rose by 1.82%, South Korea’s Kospi increased by 1.29%, and Australia’s S&P/ASX 200 advanced by 0.72%. These upticks were largely driven by the White House’s 90-day exemption for products like smartphones and laptops from the recently imposed 145% tariffs on Chinese imports. The exemption also extended to semiconductor manufacturing equipment, alleviating immediate concerns for tech manufacturers and suppliers. citeturn0search14
European markets mirrored this positive sentiment. The pan-European STOXX 600 index climbed 2.1%, with Germany’s DAX leading the charge with a 2.5% increase. Technology and banking sectors were among the top performers, reflecting investor optimism over potential easing in trade policies. citeturn0news21
Despite the market rally, U.S. President Donald Trump emphasized that the tariff exemptions are temporary. He indicated plans to introduce new tariffs targeting semiconductors and other tech products within the next month, citing national security concerns. Commerce Secretary Howard Lutnick reinforced this stance, stating that the administration aims to reduce U.S. reliance on foreign technology and bolster domestic manufacturing. citeturn0news19
In response to the U.S. tariffs, China imposed its own set of levies, raising tariffs on American imports to 125%. Chinese officials, however, downplayed the potential impact, asserting the country’s economic resilience and efforts to diversify trade partnerships. Lyu Daliang, a spokesperson for China’s customs administration, remarked that “the sky won’t fall,” signaling confidence in China’s ability to weather the trade storm. citeturn0news46
While the temporary relief has provided a short-term boost to global markets, analysts caution that the underlying trade tensions remain unresolved. The prospect of renewed tariffs and the absence of concrete negotiations between the U.S. and China suggest that market volatility may persist in the coming weeks.
