U.S. President Donald Trump speaks during an event at the Selfridge Air National Guard Base in Harrison Township, Michigan, U.S., on April 29, 2025.
Evelyn Hockstein | Reuters
The term “shock and awe” is used to describe a military strategy where rapid dominance is achieved over an adversary by the initial imposition of overwhelming force and firepower.
Said adversary is left reeling and unable to respond effectively, while onlookers are surprised and impressed.
Now, U.S. President Donald Trump has definitely brought a lot of shock in the first 100 days of his presidency, taking an absolute hammer to trade links, alliances, and even his own government, but it can hardly be said to have left anybody impressed.
The new tariffs have seen the previously sanguine inflation outlook in the U.S. called into question, while a hostile stance to traditional allies such as Canada and the NATO alliance has left multi-decade relationships in tatters.
Most importantly, there has not been a single trade deal concluded with Trump’s administration — despite him claiming to have done “200 deals” (Fun fact: there are only 195 countries in the world), China is still striking a defiant tone on trade, and the war in Ukraine rages on. The president has also been forced to walk back on his “reciprocal tariffs.”
In other words, Trump may have wanted his first 100 days to be historic — they might well be, but for all the wrong reasons.
— Lim Hui Jie
What you need to know today
Trump claims to be close to India trade deal
Trump said Tuesday that tariff negotiations with India are “coming along great,” and he thinks the U.S. will strike a trade deal with the country. “I think we’ll have a deal with India,” Trump said during brief remarks to reporters outside the White House. “The prime minister, as you know, was here three weeks ago, and they want to make a deal.” His comments come after Treasury Secretary Scott Bessent said the U.S. was “very close on India.”
Trump signs order easing some auto tariffs
Trump signed an executive order Tuesday softening some of the automotive tariffs his administration put into place earlier this month, as the car industry grapples with regulatory uncertainty and additional costs due to the levies. Tariffs of 25% on imported vehicles into the U.S. will continue, but the new measures aim to reduce the overall tariff level on vehicle imports that had resulted from separate levies — such as an additional 25% tariffs on steel and aluminum — “stacking” on top of one another.
Markets climb on softer tariff stance
U.S. markets rose on Tuesday as the White House said a major trade deal was close to being announced. The blue-chip Dow Jones Industrial Average climbed 0.75%, while the S&P 500 gained 0.58%, ending at 5,560.83. Both indexes posted a sixth straight positive day, marking the longest win streak since July for the Dow and since November for the S&P 500. The Nasdaq Composite advanced 0.55%. Over in Asia, markets were mixed, with most indexes except the Kospi in positive territory..
China’s factory activity drops to a near two-year low in April
China’s manufacturing activity fell more than expected to a near two-year low, sliding into contractionary territory in April as the escalating trade war with the U.S. hurts bilateral trade. The official purchasing managers’ index came in at 49.0 in April on Wednesday, falling below the 50-level threshold, which determines expansion from contraction, for the first time since January.
Amazon scraps idea to display tariff cost after Trump complains to Bezos
Trump personally called Amazon founder Jeff Bezos to complain about a report that the online retail giant was considering displaying U.S. tariff costs on its product listings, a source familiar with the matter told NBC News. Within hours of the call, Amazon publicly downplayed the scope of its plan — and then announced that it had been scrapped entirely.
Australia’s first-quarter inflation holds at 4-year low
Australia’s first-quarter inflation rose 2.4% compared to the same period last year, staying at a four-year low and higher than a Reuters poll’s expectations of a 2.3% climb. Data from the Australian Bureau of Statistics said the most significant price rises this quarter were in housing, education, as well as food and non-alcoholic beverages.
[PRO] Critical economic reports Wednesday to show how close the U.S. is to recession
A high-stakes batch of economic reports due Wednesday is expected to show the economy already was wobbling, though inflation was easing, before President Donald Trump slapped high tariffs on U.S. trading partners in April.
And finally…
The seal of the U.S. Federal Reserve Board of Governors near the Marriner S. Eccles Federal Reserve building in Washington, D.C., U.S., on Jan. 12, 2025.
Samuel Corum | Bloomberg | Getty Images
Investors turn to emerging market debt after Trump tariffs hit U.S. Treasurys
Investors have been piling into emerging market bonds as Treasurys’ long-held reputation as a safe haven took a beating following U.S. President Donald Trump’s “reciprocal” tariffs.
Emerging market local currency bond yields slid by 13 basis points between April 2 — when Trump announced the tariffs — and April 25, according to the most recent data provided by JPMorgan. In contrast, the benchmark 10-year Treasury yield rose by more than 7 basis points during the same period.
Brandywine Global Investment Management’s portfolio manager Carol Lye added that that Mexico, Brazil and South Africa were some of the countries that could see more demand for their bonds.
