{"id":113502,"date":"2025-04-10T11:59:07","date_gmt":"2025-04-10T07:59:07","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=113502"},"modified":"2025-04-10T11:59:10","modified_gmt":"2025-04-10T07:59:10","slug":"european-stocks-soar-on-trump-tariff-pause-but-china-tensions-keep-outlook-cloudy","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/european-stocks-soar-on-trump-tariff-pause-but-china-tensions-keep-outlook-cloudy\/04\/10\/market-updates\/","title":{"rendered":"European Stocks Soar on Trump Tariff Pause, But China Tensions Keep Outlook Cloudy"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><\/h3>\n\n\n\n<p><strong>European equity markets surged on Thursday<\/strong>, joining a global relief rally after <strong>U.S. President Donald Trump announced a 90-day delay<\/strong> on most of his planned reciprocal tariffs. However, sentiment remained cautious as Trump <strong>simultaneously hiked duties on Chinese imports to 125%<\/strong>, signaling continued tension between the world\u2019s two largest economies.<\/p>\n\n\n\n<p>As of <strong>03:05 ET (07:05 GMT)<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Germany\u2019s DAX<\/strong> jumped <strong>7.9%<\/strong><\/li>\n\n\n\n<li><strong>France\u2019s CAC 40<\/strong> rose <strong>1.8%<\/strong><\/li>\n\n\n\n<li><strong>The U.K.\u2019s FTSE 100<\/strong> climbed <strong>5.7%<\/strong><\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Relief Rally Gathers Pace, But Risks Linger<\/h3>\n\n\n\n<p>The gains in Europe followed <strong>strong overnight rallies in Asia and Wall Street<\/strong>, with U.S. indices posting their <strong>biggest daily percentage gains in over a decade<\/strong> after Trump\u2019s late-Wednesday announcement to <strong>postpone new tariffs for most trading partners<\/strong>.<\/p>\n\n\n\n<p>Still, the optimism was tempered by the decision to <strong>increase tariffs on Chinese goods from 104% to 125%<\/strong>, further escalating an already tense trade standoff. Additionally, Trump confirmed that:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <strong>10% blanket tariff<\/strong> on nearly all U.S. imports remains intact<\/li>\n\n\n\n<li>Existing duties on <strong>autos, steel, and aluminum<\/strong> are unaffected by the pause<\/li>\n<\/ul>\n\n\n\n<p>These developments have kept markets on edge about <strong>long-term global growth prospects<\/strong>, especially as the U.S.-China tariff war intensifies.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">EU Responds: Welcome Pause, But Prepares Countermeasures<\/h3>\n\n\n\n<p><strong>European Commission President Ursula von der Leyen<\/strong> welcomed Trump\u2019s decision to delay new tariffs for most allies, reiterating that <strong>tariffs ultimately harm businesses and consumers<\/strong>.<\/p>\n\n\n\n<p>Nevertheless, the <strong>European Union is preparing its own countermeasures<\/strong>. On Wednesday, member states voted in favor of a <strong>proposal to introduce retaliatory trade actions<\/strong> against the United States, highlighting the fragility of transatlantic trade relations despite the temporary truce.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">U.S. CPI in Focus, But May Be Overshadowed<\/h3>\n\n\n\n<p>Investors are also awaiting the release of <strong>U.S. Consumer Price Index (CPI) data for March<\/strong> later in the day. However, analysts suggest its impact may be muted, as the figures <strong>predate the latest wave of tariffs<\/strong> and may not fully reflect inflationary pressures stemming from the new trade measures.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Volkswagen Highlights Tariff Fallout<\/h3>\n\n\n\n<p>In corporate news, <strong>Volkswagen (ETR:VOWG_p)<\/strong> came under pressure after reporting <strong>weaker-than-expected Q1 results<\/strong>. The automaker cited <strong>uncertainty from U.S. tariffs<\/strong> as a key driver of the shortfall and announced:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Halts to rail shipments from Mexico<\/strong><\/li>\n\n\n\n<li><strong>Delays at ports for Europe-bound vehicles<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Despite the challenges, VW reported that its <strong>electric vehicle (EV) sales more than doubled in Europe<\/strong>, while <strong>China EV sales dropped over 33%<\/strong>, reflecting the growing divergence between its Western and Asian markets.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Outlook: Relief May Be Short-Lived<\/h3>\n\n\n\n<p>While Thursday\u2019s rally underscores the market\u2019s relief over the temporary tariff reprieve, the underlying risks\u2014particularly the <strong>escalating U.S.-China conflict<\/strong>\u2014remain unresolved. Unless both sides move toward genuine negotiation, <strong>the threat of prolonged supply chain disruptions and slower global growth<\/strong> may keep markets volatile in the weeks ahead.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>European equity markets surged on Thursday, joining a global relief rally after U.S. President Donald Trump announced a 90-day delay on most of his planned reciprocal tariffs. However, sentiment remained cautious as Trump simultaneously hiked duties on Chinese imports to 125%, signaling continued tension between the world\u2019s two largest economies. As of 03:05 ET (07:05 &hellip;<\/p>\n","protected":false},"author":9,"featured_media":70012,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,6827,49,36],"tags":[],"class_list":["post-113502","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-daily-economic-reports","category-economic-reports","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/113502","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=113502"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/113502\/revisions"}],"predecessor-version":[{"id":113503,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/113502\/revisions\/113503"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/70012"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=113502"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=113502"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=113502"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}