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🇨🇳 China Suspends Boeing Aircraft Supplies from the U.S.

Beijing has ordered Chinese airlines to stop accepting new Boeing aircraft and halt purchases of spare parts from American suppliers — another step in escalating the trade war with Washington.

⚫ What We Know: 💬 Chinese carriers have been instructed not to accept new Boeing planes 💬 Purchases of aviation equipment from the U.S. have also been suspended 💬 The reason is the new 125% tariffs on all U.S. products 💬 10 Boeing 737 Max planes may be delivered selectively if the documents were processed before April 12 💬 Juneyao Airlines has already postponed receiving its Dreamliner 💬 Boeing shares fell by 4.6% in premarket trading following the Bloomberg report ⚫ Context: 💬 China is Boeing's largest market, accounting for up to 25% of shipments in 2018 💬 But since 2019, deliveries have decreased due to the 737 Max crashes, quality issues, and tariffs 💬 Airbus now leads in Chinese fleets, and the Comac C919 is emerging as an alternative 💬 Boeing remains an important supplier: hundreds of American aircraft are already in operation, requiring maintenance and replacement ⚫ Consequences: 💬 Boeing risks losing billions due to the suspension of supplies 💬 China is increasing pressure on Washington by targeting strategically important industries 💬 Full trade resumption may take years ⚡ECONOMY NEWS⚡

🇺🇸 The U.S. Loses Billions Due to Tourist Decline and Boycotts

The U.S. economy risks losing up to $90 billion in 2025 due to a decline in tourist arrivals and boycotts of American products.

⚫ What’s Happening 💬 The number of foreign tourists to the U.S. dropped by nearly 10% in March 💬 Canadians, the largest tourist group, are mass canceling trips and refusing American products 💬 Retail revenue from foreign tourists could decrease by $20 billion 💬 Tour operators are seeing a decline in summer bookings from Canada (–70%) and Europe (–25%) 💬 The market is already responding: hotel, flight, and car rental prices fell in March ⚫ Why This Matters 💬 Foreign tourists spent a record $254 billion in the U.S. in 2024 💬 Tourism was one of the growth drivers after the pandemic 💬 Now, it is becoming an additional risk factor for recession, alongside tariffs and export declines

📉 Goldman Sachs predicts that U.S. GDP in 2025 will be below market expectations due to external economic risks.

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🇨🇳 China Starts Harnessing the Power of Its Massive EV Fleet

China is launching the world’s largest program to integrate electric vehicles into the power grid — turning them from energy consumers into mobile power sources.

⚫ What’s happening 💬 EV sales in China in 2023: 11 million vehicles, 45% of all new cars 💬 V2G (Vehicle-to-Grid) program approved by national regulators — 30 pilot projects announced 💬 EVs will charge at night and feed energy back into the grid during the day 💬 Potential annual income for owners — up to $1,100 💬 China leads the world in both fleet size and grid capacity for this technology ⚫ Why it matters 💬 Boosts grid resilience 💬 Reduces reliance on oil and gas 💬 Accelerates smart charging and EV adoption 💬 Could set a global technology standard

💬 “If China sets a unified standard and offers incentives, the world will follow quickly” — Kai Lim, University of Queensland

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🇨🇳 China’s Exports Surge Ahead of U.S. Tariff Hit

China's exports increased by 12.4% in March, surpassing all forecasts. However, this surge is likely temporary: U.S. tariffs of up to 145% will take effect in April, threatening to crush trade.

⚫ Key Facts 💬 Exports to the U.S. rose by 9% YoY and 44% MoM, reaching $40 billion 💬 Sales to Southeast Asia hit records, especially to Vietnam and Thailand 💬 Imports dropped by 4.3%, signaling internal economic pressure 💬 Trade surplus in March: $103 billion 💬 Companies may have sped up deliveries to beat the tariff hit ⚫ What’s Next 💬 The export growth effect will be short-term — a decline will begin in April 💬 U.S. tariffs on electronics are partially delayed, but phones and laptops will be hit 💬 China’s economy is forecasted to have grown by 5.2% in Q1 — data will be released on Wednesday

💬 ING: "From April, bilateral trade between the U.S. and China may collapse. Who will suffer more? Time will tell."

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📉 The Dollar Collapses — China Strikes Back on Tariffs

The dollar has fallen for the fifth consecutive day, responding to China’s sharp tightening of its tariff policy. Since the beginning of the week, the currency has lost more than 6%, the largest drop since 2022.

⚫ What Happened 💬 Beijing raised tariffs on all U.S. goods to 125% after the U.S. increased tariffs on Chinese imports to 145% 💬 In response, the dollar is losing its status as a safe haven — investors are moving to gold, the franc, and the yen 💬 The dollar index is down 1.2% in one day, marking the largest weekly decline in three years ⚫ Market Reactions 💬 S&P 500 and Stoxx 600 turned downward, futures are in the red 💬 The yield on 10-year Treasuries is above 4.4%, despite the risk-off flight 💬 The euro reached a three-year high 💬 Asian companies are reevaluating exports: Audi has suspended shipments to the U.S., Nintendo has postponed the launch of Switch 2 ⚫ Business in Waiting 💬 JPMorgan reports clients postponing major investment projects 💬 The threat of a recession is rising, as is inflationary pressure 💬 Corporations are awaiting clarifications: reports from JPMorgan, Wells Fargo, Morgan Stanley, and BlackRock — today

💬 ING Bank: “The crisis of trust in the dollar is in full swing. Investors are voting with their feet and exiting U.S. assets.”

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🇨🇳 China raises tariffs on U.S. goods to 125% and announces end of retaliatory measures

Beijing escalates pressure in the trade war with Washington: starting April 12, tariffs on all American goods will rise to 125%, and China will no longer respond to further increases from the U.S.

⚫ What happened: 💬 The Chinese Ministry of Finance stated that further tariff increases from Washington have "lost economic meaning." 💬 The latest U.S. actions were called a "joke" and coercive politics unrelated to the economy. 💬 China emphasized that if the U.S. continues to harm its interests, it will "counterattack resolutely." ⚫ New consequences: 💬 S&P 500 futures dropped again after the announcement. 💬 The dollar weakened further, with the Bloomberg USD index falling by more than 1%. 💬 On Thursday, China reduced quotas for American films, and earlier, it warned citizens and students about the risks of traveling to the U.S. ⚫ Historic tariff levels: 💬 Until 2025, average tariffs between the countries did not exceed 20%, even after the trade war during Trump's first term. 💬 Now, U.S. tariffs are 145%, and China’s tariffs are 125%. 💬 Almost $700 billion per year is the current trade volume between the two countries. 📌 What is under threat: 💬 U.S. imports from China: smartphones, laptops, batteries. 💬 China imports from the U.S.: gas, oil, soybeans, turbines, and chip manufacturing equipment. 🔍 Conclusion: Without de-escalation of the trade conflict, businesses and consumers on both sides will have to reconfigure logistics and pay more. The world watches as the largest economies continue to escalate tensions. ⚡ECONOMY NEWS⚡

📉 S&P 500 Full Recovery This Year Still Unlikely, Despite Rally

Even after the massive 10% surge on Wednesday, the likelihood that the S&P 500 will end 2025 with a gain is still looking slim, and history backs it up.

⚫ The Stats: 💬 In the 16 times that the S&P 500 has dropped 15% or more at any point during a year, it only recovered to end positively three times (1982, 2009, and 2020). 💬 The main reason? Federal Reserve intervention. In those cases, the Fed moved quickly to support the economy, slashing interest rates to near-zero levels. However, no such move is on the horizon this time around. ⚫ What’s Different This Year: 💬 This time, with the Fed reluctant to ease monetary policy due to inflation worries, the situation looks much more challenging. 💬 President Trump’s tariffs continue to stoke fears of inflation while also stalling economic growth — making the Fed hesitant to provide the market with the usual support it needs. ⚫ Wall Street Skepticism: 💬 Even with a strong rally, Wall Street remains skeptical about the sustainability of this rebound. The tariff turmoil is likely to keep uncertainty high, with fears of stagflation or even a recession looming on the horizon. 💬 Analysts like Matt Maley from Miller + Tabak & Co. warn that corporate earnings will likely take a hit, and inflation remains stubbornly high. If interest rates stay elevated, stock valuations could keep falling. The Bottom Line: While we saw a strong rebound, don’t bet on a full recovery just yet. The economic pressure and uncertainty from both tariffs and inflation mean the S&P 500 could be in for a bumpy ride for the rest of the year. ⚡ECONOMY NEWS⚡

📈 Trump’s ‘Great Time to Buy’ Statement Triggers $4.3 Trillion Stock Rally! President Donald Trump couldn’t have been more right when he declared that “This is a great time to buy”! ⚫ The Situation: 💬 The stock market had just experienced a massive sell-off, with $6 trillion wiped off equity values and the S&P 500 teetering on the brink of a bear market. All this following Trump’s harshest tariffs on US trading partners, which sent waves of panic across the market. 💬 The Trump trade war seemed like the sole cause for the chaos, but Trump, ever the market mover, was ready to take action. ⚫ What Happened Next? 💬 Despite his previous statements that his policies were here to stay, Trump pulled the trigger on a tariff pause — an unexpected move that sent stocks soaring in a matter of minutes. 💬 The S&P 500 surged by more than 9%, marking an incredible $4.3 trillion in stock gains. Investors reacted with excitement, driven by the hope of stability and economic growth despite ongoing trade tensions. ⚫ Trump’s Influence: 💬 David Wagner, a portfolio manager, pointed out how Trump’s statements directly change the market rules: “Obviously now, you’re going to look to Trump for any kind of sign.” 💬 This move marks another example of how Trump’s unpredictable influence has a huge impact on global markets — turning uncertainty into an opportunity. Trump's statement might have appeared impulsive, but the result was a huge win for investors. Whether you agree with his policies or not, one thing is clear: Trump knows how to move the market. ⚡ECONOMY NEWS⚡

🇨🇳 China warns its citizens: think twice before going to the U.S.!

In response to escalating trade relations with the U.S., China is stepping up its security measures, urging citizens to carefully consider the risks associated with traveling to America.

⚫ What’s happening? On Wednesday, China’s Ministry of Culture and Tourism issued a warning for its citizens to carefully assess the risks of traveling to the U.S. amid worsening trade relations and potential security threats. This statement is part of China’s broader response to the new tariffs imposed by the Trump administration, which have caused global market instability and deepened the trade war between the world’s two largest economies. ⚫ Why is it important? In response to U.S. actions, China has announced a 84% tariff on all imported goods from the U.S., which not only impacts business in both countries but also exacerbates international trade disputes. Warning for students: China’s Ministry of Education also expressed concern about studying in certain U.S. states, citing new legislation passed in Ohio. ⚫ What’s next? This decision signals that the trade war between the U.S. and China is becoming increasingly tense, and the global economy is feeling the consequences of these actions. China is trying to show that it is not afraid of retaliation but is prepared to fight until the end, raising questions about the future of global trade. China warns that the risks to citizens in the U.S. are growing, and this may mark the beginning of a new phase of economic instability in international relations. ⚡ECONOMY NEWS⚡

💥 Trump and China: A Direct Path to an Economic Divide?

The economies of the U.S. and China are on the verge of a major economic split. The impact of Trump's tariffs and China's decisive retaliatory actions make the world wonder: could the trade war escalate into a true economic rupture?

⚫ What is happening? Trump's tariffs on Chinese goods have reached 104%, and now the U.S. is facing China's economic response: tariffs on American goods have increased to 84%. 💬 Economic crisis: stock market drops, sharp fluctuations in markets, and the threat of a global recession — the consequences of the tariff war are beginning to affect the global economy. 💬 "Decoupling" or how the rupture between two economies will affect the world — the U.S. and China, the largest economies, are at the brink of no return. The U.S. is losing in production, and China is looking for new markets. ⚫ What does this mean for businesses? 💬 U.S. companies (Apple, Nike, Tesla, and others) have already filed over 1,100 requests for tariff exemptions on Chinese goods. Their production plans and economic models are under threat. 💬 Global consequences: according to Bloomberg's forecasts, if tariffs remain, imports from China to the U.S. will decrease by 85%, and global trade could shrink by 1%. ⚫ The Fall of the Global Economy? Countries are starting to look for alternatives to Chinese and U.S. supplies, realizing that the trade war will have consequences for everyone. The impact on the labor market and jobs: job cuts in the U.S. and price increases for consumers — especially on goods with no alternatives.

This is not just a trade war; it's a geopolitical game that will radically change the world economy.

Global markets are in panic, and businesses and investors are forced to adapt to new conditions by revising strategies. The future in the context of the divide between the U.S. and China threatens the stability of the entire global economy. Be prepared for new economic realities! Trump's tariffs could lead to unforeseen consequences for all of us. ⚡ECONOMY NEWS⚡