International Trade News Update – April 10, 2025

U.S. Tariff Pause Spurs Historic Market Rally

On April 9, President Trump announced a 90‑day moratorium on most newly imposed tariffs—excluding those on China, which remain at 125%—and replaced them with a uniform 10% rate for other nations. The announcement triggered a dramatic equity rebound: the S&P 500 climbed 5.6% and the Nasdaq soared over 8%, marking one of the largest single‑day gains since World War II

China–EU Trade Talks Gain Momentum

In Brussels, Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Maroš Šefčovič held high‑level discussions to restart economic dialogue and explore mechanisms to mitigate the impact of U.S. duties on their bilateral trade. Both sides committed to advancing talks on areas such as electric vehicle price commitments and broader WTO reform

China’s Retaliatory Tariffs Take Effect

Effective April 10, China has imposed an additional 34% tariff on all U.S. goods and suspended imports of U.S. sorghum, poultry, and bone meal—measures aimed at countering Washington’s recent tariff hikes and protecting domestic agricultural interests

WTO Warns of Potential 80% Trade Collapse

The World Trade Organization issued a stark warning that ongoing U.S.–China trade tensions could slash bilateral goods trade by as much as 80%, potentially triggering a wider contraction in global supply chains and real GDP

Market & Policy Implications

• Volatility Persists: Financial markets remain on edge as investors monitor policy developments.

• Diversification Strategies: Export‑dependent economies like Vietnam and Mexico are actively seeking new markets to reduce overreliance on the U.S. and China.

• Call for Multilateralism: WTO members are increasingly advocating for multilateral negotiations to de‑escalate tensions and uphold the rules‑based trading framework.

As the world navigates these shifting dynamics, stakeholders must remain vigilant and adaptable to protect growth and stability in an increasingly complex trade environment.