US stocks shook as tariff fears continued to weigh on the market. The US made little progress on tariff negotiations.
The fear of tariffs is still heavy in the market, and after a slight jump to today's trading, a revision was seen. The stocks are trading sideways, with significantly lower volatility compared to last week's ups and downs.
On April 15, the S&P 500 rose 0.04% or 2.20 points from the market opening to 5,408.17. The Dow Jones fell 16.43 points or 0.04%, trading at 40,508, while the high-tech NASDAQ fell 0.06% or 10.76 points, trading at 16,822.73.
At the same time, Bitcoin rose, and volatility was far above the stock price. On Tuesday, April 15th, Bitcoin (BTC) hit a daily high of $86,429 before consolidating to $84,949, recording a price increase of 0.47% each day.
The US trade war still weighs on the market
The 90-day tariff suspension has given the market much needed relief, but there are still continued concerns as to how long this will last. Negotiations with key trading partners are progressing slowly. This means that the historic tariff rates could return.
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For one, Bloomberg reports that the EU expects tariffs of 25% on all exports will be maintained as negotiations with the US are stagnating. The EU proposed a “zero-zero” contract for all industrial exports, but the US rejected the offer.
The Trump administration believes that most foreign jurisdictions, including the EU, will use non-tariff barriers to block exports. However, this significantly complicates negotiations for all parties.
In theory, industry subsidies, consumer protection standards, food safety laws, and even VAT taxes are on the negotiation table. Therefore, it is not clear whether the US will be able to secure these transactions by the 90-day deadline.
Talks with China are also stuck, with some relief coming from Trump's decision to exempt smartphones from 145% tariffs on Chinese goods. These smartphones that Chinese companies make for companies, including Apple, are subject to different rates.
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