China Stocks Pare Losses After Trump Tariffs, Hopes For Government Stimulus

Obviously, [the tariffs] are far more onerous than the market was expecting, but I think that participants also believe that many will be watered down and/or rescinded,

hedge fund manager Jim Chanos said in a text message

Donald Trumppresident

Why? Because if people really believe these tariff rates will stick, the equity market would be down a lot more than the 2 percent

losses recorded shortly after Trump made his announcement

In my old business, I was very concerned about market movements,

the former macro hedge fund executive said in an appearance on Bloomberg TV

We’re poking the bear,

Brendan Walsh of Macro Policy Partners said after Trump’s announcement

The real wild card, however, is what [happens] if the rest of the world doesn’t cave, as many expect,

he added

The silver lining for investors could be that this is only a starting point for negotiations with other countries and ultimately tariff rates will come down across the board,

Northlight Asset Management's Chris Zaccarelli wrote in a note to clients

The increased tariffs have been a negative factor for the US dollar,

Forex.com's Matthew Weller told AFP

But for now traders are shooting first and asking questions later,

he added

The markets are in risk-off mode and pricing-in weaker global economic growth,

said Kyle Rodda, senior financial market analyst at Capital.com

Safe haven trades in the wake of the announcement will include the Japanese yen most definitely,

said John Hardy, chief macro strategist at Saxo Bank

Small-cap companies tend to be suppliers to the large-cap companies, so as things go bad for the large-cap names because of tariffs, they are going to put a lot of pressure on their small-cap suppliers,

said Jefferies' DeSanctis

The market is now pricing in more rate cuts, and perhaps sooner,

adding an easing in June now seemed guaranteed, with the chance of a cut in May as well

While the tariff measures announced were more severe than expected, the question over how long these tariffs will remain in place is more open-ended due to Trump’s inclination to be a deal maker,

said Tim Waterer, chief market analyst at KCM Trade in Sydney

I have been shifting my exposure in China to domestic consumption since the start of year, and this further reinforces the validity of that direction for me,

Ng says

We do not know how long the previously enacted tariffs and any future tariffs will remain in force, but we believe peak tariff uncertainty may soon be behind us,

according to Kurt Reiman, head of fixed income Americas, and other strategists at UBS Global Wealth Management

The Fed does have considerable firepower to help the market,

said George Bory, chief investment strategist for the fixed income team at Allspring Global Investments

Every country is calling us. That’s the beauty of what we do. If we would have asked these countries to do us a favour they would have said no. Now they will do anything for us.”

Trump later said

The safe-haven properties of the dollar are being eroded.”

Warning clients to beware a “dollar confidence crisis”, George Saravelos, the head of foreign exchange research at Deutsche Bank, said

Eye-watering tariffs on a country-by-country basis scream 'negotiation tactic,' which will keep markets on edge for the foreseeable future,

said Adam Hetts, global head of multi-asset and portfolio manager at Janus Henderson Investors

As long as you don’t retaliate this is the high end of the number,

Bessent told Bloomberg Television