Tariff pause: 'Everybody's breathing a sigh of relief,' says analyst

The Star

In a stunning reversal, U.S. President Donald Trump said he would temporarily lower the hefty duties he had just imposed on dozens of countries while further ramping up pressure on China, sending global stocks rocketing higher.  WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

Transcript

00:00Asian stocks roared higher in early trade Thursday after U.S. President Donald Trump paused most of

00:06his new tariffs for 90 days. The move came after days of market turmoil that wiped trillions of

00:12dollars off the value of U.S. stocks. I think this is a massive, massive benefit for consumers,

00:19for investors. I think everybody's breathing a sigh of relief because it's been extremely chaotic

00:24for the last few days. Obviously, this leaves us with at least 90 days of slightly more stability

00:34than we've had, which is great. I think it puts investors in a position where they can hopefully

00:41reset, regroup, and probably rebalance. If anybody has been really sweating this market drop,

00:50it's time to readjust your risk tolerance and your risk exposure to try to better reflect exactly

00:56how much you can really take. Bursa Malaysia continued to trend higher at mid-morning,

01:02supported by bargain hunting amid easing concerns over global trade war uncertainties.

01:07Japan's NICI index jumped over 8 percent early on, while South Korea's Kospi index jumped 5 percent.

01:14There were more modest gains for stocks in China, however, where Trump has not paused tariffs.

01:20I think maintaining these China tariffs means that trade will shift, and it has to shift

01:26because businesses will be, you know, really handling much higher costs if they keep operating

01:34as they are. But at the same time, the negotiating tactics with other countries clearly is a goal. I think

01:41if this was solely to just put the thumb on the scale and say, we're making everyone move to the U.S.

01:50for manufacturing and for other products, you know, other products, then there would have been nothing

01:56like today. So I think we're seeing that it's a bit of both, but obviously China is squarely

02:03in the crosshairs for the toughest talk.

02:05Yeah.

02:11Yeah.

02:12You

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