Trump tariffs live: Asian markets tumble after Trump admits concerns over ‘costs and problems’

The Indian rupee strengthened by 0.8 per cent to 86 against the US dollar on Friday, tracking gains in other Asian currencies as the dollar dropped to a near two-year low.

Traders expect continued volatility, with the rupee likely to consolidate between 85.70 and 86.70 in the short term.

Reuters quoted a trader at a state-run bank as saying that the rupee is currently in “the middle of its recent trading range and it could consolidate between 85.70 and 86.70 in the near term”.

Apple reportedly hurried 600 tons of iPhones — up to 1.5 million individual phones — out of India before President Donald Trump slapped the rest of the world with tariffs.

The tech behemoth chartered flights to India in order to snatch up as many phones as possible, likely to try to build up its US phone inventory.

Indian imports face a 26 per cent tariff rate, but Trump announced a 90-day moratorium on the import tax after he tanked global stock markets with his “Liberation Day” announcement.

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President Donald Trump’s administration has been predicting its barrage of tariffs targeting China will push Apple into manufacturing the iPhone in the United States for the first time.

But that’s an unlikely scenario even with US tariffs now standing at 145 per cent on products made in China — the country where Apple has manufactured most of its iPhones since the first model hit the market 18 years ago.

The disincentives for Apple shifting its production domestically include a complex supply chain that it began building in China during the 1990s. It would take several years and cost billions of dollars to build new plants in the US, and then confront Apple with economic forces that could triple the price of an iPhone, threatening to torpedo sales of its marquee product.

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Gold prices soared nearly 3 per cent to a record high of $3,171.49 an ounce on Thursday, as a weakening US dollar and escalating trade tensions — driven by President Trump’s decision to raise tariffs on Chinese goods — pushed global investors toward the safe-haven metal.

Spot gold climbed 2.6 per cent to $3,160.82 an ounce at 1.54pm ET (1754 GMT), after hitting a record high of $3,171.49 earlier in the session.

US gold futures rose 3.2 per cent to settle at $3,177.5.

The dollar’s drop made gold more attractive to non-US buyers, while unexpectedly soft US inflation data and expectations of Federal Reserve rate cuts added momentum.

“Gold regains its safe-haven appeal and gets back on track for new all-time highs,” Nikos Tzabouras, Senior Market Analyst at Tradu.com told Reuters.

“However, prospects of deals with trading partners pose a significant risk to gold’s upside potential, as they could renew pressure on the metal. Additionally, headwinds may arise from pared-back Fed rate cut bets that can strengthen the dollar.”

Vietnam is trying to avoid harsh US tariffs by promising to crack down on Chinese goods that are being re-routed through its territory to evade American duties, according to a person familiar with the matter and a government document seen by Reuters.

This reportedly includes clamping down on transhipment fraud (where Chinese goods are falsely labelled as “Made in Vietnam”) and tightening control over sensitive exports to China, such as semiconductors.

Vietnam was recently hit with a 46 per cent tariff by the Trump administration, though it’s been suspended for 90 days pending trade talks.

Vietnam is hoping to negotiate this down to around 22-28 per cent, according to three people with knowledge of the matter, the outlet reported.

China’s yuan rebounded slightly against the US dollar on Friday after hitting its weakest level since 2007, but continued to slide against a basket of major trading partner currencies, reaching a 19-month low.

This comes amid rising US-China trade tensions, with US president Donald Trump increasing tariffs on Chinese goods to an effective 145 per cent, excluding China from a 90-day tariff pause given to other nations.

While a weaker yuan could help boost Chinese exports, the People’s Bank of China (PBOC) is cautiously managing its depreciation to avoid capital flight and financial instability, according to Reuters.

Despite loosening its grip slightly, the PBOC is actively working to stabilise the yuan, the outlet reported, instructing state banks to reduce dollar purchases.

Analysts say that devaluing the yuan relative to a broader currency basket — rather than just the dollar—may help China’s exports stay competitive in non-US markets.

Chinese president Xi Jinping will make his first official foreign trip of the year from Monday to Friday, visiting Vietnam, Malaysia, and Cambodia amid escalating US-China trade tensions.

Beijing said Mr Xi is visiting Vietnam at the invitation of president Luong Cuong, marking his first trip there since December 2023.

Mr Xi will visit Malaysia from 15-17 April. The communications minister, Fahmi Fadzil, said Mr Xi’s visit was “part of the government’s efforts … to see better trade relations with various countries including China”.

Mr Xi will travel to Cambodia on Thursday next week and Cambodia described it as a “milestone visit which will further cement the traditional relations of friendship built by successive leaders of both countries”.

Asian markets are mostly trading lower today, dragged down by a wave of risk-off sentiment following Wall Street’s sharp decline.

Japan’s Nikkei 225 is leading the slump with a steep 4.5 per cent fall, while South Korea’s Kospi, Hong Kong’s Hang Seng, and Australia’s ASX 200 are also in the red.

Mainland China and Taiwan, however, are showing some resilience. The Shanghai Composite is up 0.1 per cent and Taiwan’s Taiex has gained 0.2 per cent, offering a slight contrast to the broader regional downturn.

US president Donald Trump acknowledged potential “transition problems” following his decision to pause some tariffs for 90 days, amid another sharp market drop.

After initially celebrating a market rally, he took a more cautious tone, saying short-term difficulties are expected but long-term outcomes will be positive.

“There will always be transition difficulty – but in history, it was the biggest day in history, the markets. So we’re very, very happy with the way the country is running. We’re trying to get the world to treat us fairly,” Trump said in the Cabinet Room.

He continued: “We think we are in very good shape. We think we are doing very well. Again, there will be a transition cost and transition problems, but in the end, it’s going to be a beautiful thing.”

Donald Trump has claimed that he could make “every deal in one day if I wanted to” – and warned that his higher “reciprocal” tariffs rate could return once the 90-day period ends.

Speaking to reporters following a cabinet meeting, the US president said: “We have to have a deal that we like. We don’t want a deal that’s going to be a bad deal. I could make every deal in one day if I wanted to. I could do this all in one day – I could say: ‘here’s what we’ll do’.”

Asked if the higher tariffs will revert if deals cannot be reached in 90 days, Mr Trump said: “That’s what will happen. If we can’t make the deal that we want to make or have to make, or that’s good for both parties – it’s got to be good for both parties – and then we go back to where we were.”

Pressed on whether he would extend the pause, he replied: “We’ll have to see what happens at that time.”