After U.S. markets relinquished a large portion of their unprecedented gains from the previous day, Asian shares fell on Friday, April 11, 2025.
After the White House clarified that the United States will tax Chinese imports at 145%, not the 125% rate that Mr. Trump had written about in his posting on Truth Social on Wednesday, once other previously announced tariffs were taken into account, China announced more countermeasures against the United States, and losses for U.S. stocks increased.
On April 11, 2025, Chinese President Xi Jinping called on the European Union to stand with Beijing against “unilateral bullying,” referring to the fluctuating tariffs that U.S. President Donald Trump had placed.
According to Chinese news agency Xinhua, Mr. Xi emphasized the importance of collaboration between the union and China in navigating Beijing’s escalating trade conflict with Washington during his meeting with Spanish Prime Minister Pedro Sanchez on April 11, 2025.
Mr. Xi stated that China and Europe should fulfill their international obligations and work together to oppose unilateral bullying tactics.
Foreign leaders are attempting to figure out how to react to the duties as a result of Mr. Trump’s intensifying trade dispute with China, the second-largest economy in the world, which has stoked worries of a recession and more retribution.
Coffee, sugar, and cocoa all rebound, but due to demand issues, they are expected to drop sharply each week.
Despite Friday’s recovery, worldwide cocoa, coffee, and sugar prices were on track for steep weekly declines as investors continue to worry about a global recession brought on by U.S. President Donald Trump’s extensive trade tariffs.
Trump announced on Wednesday that he will temporarily halt his proposed tariffs for 90 days, reducing them to “just” 10% for all nations other than China. The second-biggest economy in the world is currently subject to effective 145% tariffs and has responded by imposing its own 125% levies on imports from the United States.
By 1257 GMT, London cocoa futures, which are traded on the ICE exchange and are considered a global price benchmark, had increased by 0.5% to 6,023 pounds per metric ton, although they were on track to drop by more than 5% each week.
Despite a 2.1% increase to $8,245 per ton, New York cocoa was expected to drop by almost 3% every week.
Amid worries about potential dumping of goods and rerouting of consignments from India to third countries after the US imposed heavy tariffs on China, the commerce ministry has warned the customs officers to keep close scrutiny on imports and exports, according to an official.
China’s products have become more costly on the US market due to the imposition of broad tariffs, which may cause exports to be diverted to nations like India. China is now subject to a 125 percent levy imposed by the US.
“Customs has been alerted about monitoring our exports and imports to see if there is any extraordinary surge,” the official stated. India should not be a destination for rerouting.
Input on the increase in imports and its effects on domestic industry has also been requested from the relevant line ministries and trade associations.
The dollar dropped sharply on Friday, hitting a three-year low against the euro and its lowest in ten years against the Swiss franc as continued worries about U.S. tariffs eroded trust in the currency as a safe haven.
China announced it would increase levies on U.S. imports from 84% to 125% starting on Saturday in its most recent response against U.S. tariffs.
The 10-year yield is poised for its largest weekly increase since 2001, which is in addition to a global selloff that has beaten markets and even the once-safe haven U.S. Treasuries.
According to Francesco Pesole, FX strategist at ING, “this is just a dollar crisis; previously it was more like a dollar deleveraging.”
“Basically, the dollar is telling us that markets are very eager to sell America, so we need to get something from (U.S. President Donald) Trump,” he stated.
