China Retaliates over Trade Deals">
Global Stocks Tumble as China Retaliates Over trade Deals
Table of Contents
LONDON — April 21, 2025 — Global markets are reacting negatively today to renewed tensions in trade, especially over China’s interestes.The warning was issued by Beijing after former President Donald Trump’s comments regarding non-tariff measures. The impacts are being felt globally, with declines visible across multiple markets, including futures, and are signaling a drop in the market.As developments unfold, expect further analysis of how the market is reacting and what steps China might eventually take.
Global Stocks Tumble as China Threatens Retaliation over Trade Deals
Global markets are experiencing a downturn Monday amid escalating trade tensions, with Beijing vowing to respond to any deals designed to isolate China.
Market Overview
- Global stocks are largely lower, with the dollar extending its declines.
- U.S. stock futures are pointing lower following a holiday-shortened week that ended in the red.
- European and Hong Kong markets are closed for Easter Monday, while Japan’s Nikkei 225 ended lower.
China’s Warning
Beijing has issued a stern warning, stating it will retaliate against countries that cooperate with the U.S. in trade agreements that undermine China’s interests. A Chinese commerce ministry spokesperson emphasized the country’s stance:
it should be pointed out in particular that China firmly opposes any party reaching a deal at the expense of China’s interests. If this happens, China will never accept it and will resolutely take countermeasures in a reciprocal manner. China is determined and capable of safeguarding its own rights and interests.
Trump’s Response
The warning follows a post by former President Donald Trump on his Truth Social platform Sunday, outlining eight “non-tariff cheating” measures, including currency manipulation and value-added taxes.
Did you know? Non-tariff barriers include quotas, embargoes, sanctions, and other restrictions that can impact international trade.
U.S. Stock Futures
U.S. stock futures indicate a downward trend as markets reopen after a mixed performance last Thursday. Dow Jones Industrial Average futures are down 0.9%, S&P 500 futures are down 1.1%, and Nasdaq futures are 1.2% lower.
Pro Tip: Monitoring stock futures can provide insights into potential market movements when trading resumes.
Global Market Performance
The Stoxx Europe 600 index and Hong Kong’s Hang Seng Index are closed for Easter Monday. Japan’s Nikkei ended down 1.3%.
Treasury Yields and Gold Prices
The dollar has weakened further, and the 10-year Treasury yield has risen to 4.36%. The search for safe-haven assets is driving gold prices higher, exceeding $3,400, and boosting shares of mining companies like Newmont (NEM) in premarket trading.
Reader Question: How do rising Treasury yields typically affect the stock market?
Frequently Asked Questions (FAQ)
What is China’s primary concern?
China is concerned about trade deals that are made at its expense.
What was Donald trump’s recent statement about?
donald Trump outlined “non-tariff cheating” measures on his Truth Social platform.
How are U.S. stock futures performing?
U.S. stock futures are pointing lower.
