Trump's Tariff Teeter: Markets React to Auto Exemptions

Asian markets saw gains while uncertainties loom over U.S. and European markets following President Trump's suggestion of potential exemptions on auto-related tariffs. These tariffs significantly impact automobile costs and are part of broader trade tensions. The U.S. Treasury bonds recovered, while investor sentiment remained cautious amid ongoing trade policy shifts.

Asian stock markets witnessed an uptick as investors reacted to President Donald Trump's potential exemptions on auto-related tariffs. Meanwhile, U.S. and European markets displayed volatility, with Trump's trade policies continuing to stir uncertainties.

The possibility of modifying the existing 25% tariffs on foreign auto imports, including those from Mexico and Canada, was floated by Trump. This adjustment aims to give car manufacturers time to adapt, yet the ongoing tariff discourse has left markets oscillating.

Despite the temporary relief from favorable news in shares, the global economic outlook remains clouded by trade uncertainties and recession fears. In currency markets, the U.S. dollar struggled amidst these developments, reflecting concerns about U.S. consumer prices and economic performance.

(With inputs from agencies.)