Investors flee US assets, but the Chinese market will mess up Trump’s 145% tariffs when the trade war begins

• Global stock markets were in chaos this morning Large tariffs will come into effect on trade between the US and China. China’s stocks are relatively Bouyant and traded flat. However, in the US, S&P 500 investors continued to take the bet on both Yeserday trading and this morning’s futures contract. It’s messy in Japan and Europe too.

China’s CSI 300 index rose 0.4% today, but that was almost the only good news in the global market. As of 5:20am, volatile investor sentiment was spreading westward. The Euro Stoxx 50 fell 1.7%, while the S&P 500 futures fell 0.4%.

Goldman Sachs warned about another potential global equity drawdown in a note to client yesterday. “The chances of selling more recently exceeded 35%,” the memo said. luck,say.

The US Treasury Department is known to have investors. Traditional safe haven. It puts pressure on the Trump administration I previously quoted Shaky Bond Market Because of Wednesday’s decision to delay customs.

The US dollar index will drop by 1.4%, with investors going to other currencies such as the Japanese yen, Swiss franc and the euro. gold, Another safe havenAlso It destroyed the past $3,200 per ounce.

“There is clearly a departure from US assets. The downward currencies and bond markets are not a good sign.” I told Reuters. “This exceeds the pricing of slowing growth and trade uncertainty.”

Here’s a snapshot of the massacre luck‘s Everyday CEO:

• S&P 500Yesterday we lost an additional 3.5%, and now it’s 10.4% Ytd.
• S&P 500 FuturesThis morning, the bell turned red before it opened.
• in contrast:China’s SSE compositeToday it rose 0.45%, just 0.75% Ytd.
• Ministry of FinanceIt behaves like a risky asset. That’s not good, former Treasury SecretaryLawrence Summers says.
• Gold price– Sadly, a safe haven for investors –Hit the height of a new record.
• Vix Fear IndexIt’s been that best since Covid attacked in 2020.
• DollarIt’s getting weaker. I lost 8.34% of my Value YTD to DXY. DXY is an index that tracks a basket of commonly traded currencies.
• Goldman SachsYesterday, in a note to client, I warned about another potential global equity drawdown. “The chances of selling more recently exceeded 35%,” says Memo.

The decline on Friday fell sharply in the U.S. stock market on Thursday as tariff concerns continued to strain investors despite Trump’s suspension of tariffs earlier this week. The S&P 500 fell 3.5%, the worst drop in three years.

Investors are working on an Escalation of the trade war and Confuses US policythe world’s two largest economies are raising tariff rates to surprisingly high levels.

Now America 145% customs duties will be imposed The only country to acquire Trump’s “mutual tariffs” on all imports from China. Late Friday, Beijing responds to the US President’s latest tariff hike, bringing its own obligations The US imports to 125%from April 12th. This is likely to almost completely eradicate bilateral goods trading between the two largest economies in the world.

Despite Trump’s decision to suspend his “mutual tariffs,” US import duties still remain Historically high The levels are thanks to a 145% tariff on Chinese imports, a 10% tariff on all other imports, and a 25% tariff on sectors such as automobiles, steel and aluminum.

Some Asian markets tracked a sharp decline in the US market on Thursday. Japan’s Nikkei 225 Index fell among major Asia-Pacific markets, falling almost 3% on Friday. Korea’s Kospi also fell by 0.5%, while Australia’s S&P/ASX 200 fell by 0.8%.

Japanese and South Korean manufacturers recorded a sharp decline on Friday, with Sony down by 7.4%, the largest from the Asian global 500 companies.

Despite the escalating trade war, other Asian markets were more optimistic.

Hong Kong’s Hang Sen index rose 1.1%. This has been the fourth consecutive day of profits as cities recovered, the worst since 1997. Report From a German newspaper Handelsblatt China and Europe are in negotiations to reduce EU tariffs on Chinese cars.

Taiwan’s Taiex Index rose 2.8%, with manufacturers like Foxconn and Quanta Computer earning more than 9% in trading on Friday.

Indian markets have also risen, with the Nifty 50 rising 1.8% as of 5:20am. It’s the first day of the country’s trading since Trump announced his suspension of tariffs. (The Indian exchange was closed on April 10th)

Transaction time?

US trading partners are in a hurry to negotiate a trade agreement with the Trump administration and head for a sudden “mutual tariff.”

As of now, there are no indications that US and Chinese officials will begin negotiations to roll back tariff rates. Instead, Chinese President Xi Jinping is about to start a tour of Southeast Asia. He will also host European leaders in Beijing in July. South China Morning Post Report.

Both the US and China have at least suggested that they will not raise tariffs. Trump said in a comment to a reporter Wednesday that he is unlikely to do so. New customs duties will be imposed In China.

And on Friday, Beijing said he would not retaliate against any further Trump threats, claiming that further tariff hikes would not be nauseous at this point. “If the US raises tariffs on China’s exports further, China will ignore such measures,” the country’s Treasury ministry said. In a statement.

This story was originally introduced Fortune.com