Global markets experienced a rebound on Wednesday, driven by hopes for tariff relief and government pledges for economic support. After imposing 25% tariffs on Canada and Mexico following a month-long pause, President Donald Trump’s administration hinted at potential compromises. US stock futures showed a 0.8% increase in S&P 500 futures, with Dow Jones Industrial Average futures rising by 0.7%, and Nasdaq 100 futures up by 0.9% at 4:30 a.m. ET. European markets also rallied, with Germany’s DAX climbing 3.5%, and France’s CAC 40 and the Euro Stoxx 50 gaining 2.3%. In Asia, Hong Kong’s Hang Seng Index rose by 2.8%, while mainland China’s CSI 300 increased by 0.3%, and Japan’s Nikkei 225 ended 0.2% higher.
Commerce Secretary Howard Lutnick suggested that tariff compromises with Canada and Mexico could be announced soon, potentially reducing some tariffs. Meanwhile, retaliatory measures have been mixed; Canada announced 25% retaliatory tariffs, while Mexico delayed its response pending discussions with Trump.
Germany announced significant changes to its “debt brake,” allocating 500 billion euros for a 10-year infrastructure program and reforming fiscal policies. China signaled confidence in its economy despite US trade tensions, setting a GDP growth target of “around 5%” and increasing its fiscal deficit to 4% of GDP.
Analysts warn that despite current relief, further tariff developments are expected. Jeff Gerrish, former Deputy US Trade Representative, indicated that more tariff actions may follow a US trade policy review due by April 1. Trump acknowledged potential disruptions from tariffs but emphasized their role in revitalizing the American economy. — news from Business Insider