ForexLive Asia-Pacific FX news wrap: Trump ready to negotiate on tariffs

• AUD and NZD losing ground
• Trump has fired NSA Director Timothy Haugh
• South Korea Constitutional Court upheld President Yoon Suk Yeolhis impeachment
• Bank of Japan Governor Ueda says US tariffs have raised uncertainty
• Federal Reserve Chair Powell is speaking on Friday, Barr and Waller also
• Goldman Sachs cuts oil price forecasts amid tariff concerns and rising OPEC+ supply
• Stellantis laying off 900 workers at 5 US facilities following Trump tariff announcement
• BoJ Gov Ueda says US tariffs likely to exert downward pressure on Japan, gloabl economies
• Barclays lowers Brent crude outlook amid trade tensions, downside risk to its $74 forecast
• BOJ dep gov Uchida says will raise rates if inflation rises and economy improves
• Bank of Japan Governor Ueda will be speaking Friday in the Japanese parliament
• Japan finance minister Kato says has no comment on forex
• Morgan Stanley scraps 2025 Fed rate cut forecast, cites Trump tariffs and inflation risks
• Japan data – February household spending -0.5% y/y (expected -1.7%)
• US manufacturing news – Whirlpool to lay off 651 workers
• Morgan Stanley raising around 100 billion yen for Japan-focused real estate fund
• Trump sued over China tariffs: legal challenge alleges abuse of emergency powers
• ANZ forecasts Reserve Bank of Australia rate cuts in May, June and August 2025
• Financial Times: “Trump floats China tariff relief in exchange for TikTok sale approval”
• Japan considering an extra budget to address tariffs.
• JP Morgan raises global recession risk to 60% as Trump’s tariffs hit U.S. growth
• Hong Kong and China market holiday Friday, April 4, 2025 – Ching Ming Festival
• IMF says US tariffs a ‘significant risk to global outlook’ at a time of sluggish growth
• Flip flop time – Trump says he is open to deals on tariffs
• US officials open to talking about UK proposal to reduce tariffs below 10%
• Reports, probably nonsense, Republicans discuss hiking top taxrate to 40% for millionaires
• Forexlive Americas FX news wrap 3 Apr; The USD, stocks and bond yield tumble on tariffs
• Volatility index, VIX, surges higher. Hits its highest since August 5. 2024.
• Reports that the EU is considering fining X (ie Twitter) over US$1 billion
• Trump would consider deal where China approves TikTok sale in exchange for tariff relief
• Reserve Bank of New Zealand is expected to cut its cash rate again on April 9
• Trade ideas thread – Friday, 4 April, insightful charts, technical analysis, ideas

Asia’s financial markets remained on edge as trade concerns stayed on centre stage following a flurry of developments tied to U.S. tariff policy.

Former President Donald Trump signalled a possible softening of his trade stance, saying he would consider a deal in which China approves the sale of TikTok in exchange for U.S. tariff relief. He also said the U.S. remains open to tariff negotiations if other countries offer “something phenomenal.” Despite this, Trump confirmed new tariffs on semiconductors are coming “very soon,” while pharmaceutical products are also under review for potential duties.

Adding legal pressure to the mix, the first lawsuit challenging Trump’s latest tariffs on Chinese imports was filed in court. The suit, brought by the New Civil Liberties Alliance, argues Trump overstepped his legal authority by invoking the International Emergency Economic Powers Act (IEEPA) to impose the sweeping measures.

In Japan, Bank of Japan Deputy Governor Uchida reiterated that the central bank will consider raising interest rates if underlying inflation continues to rise amid improving economic conditions. Meanwhile, BOJ Governor Kazuo Ueda warned that escalating U.S. tariffs are likely to exert downward pressure on both Japan’s and the global economy, heightening concerns over international trade disruptions.

In commodity markets, Goldman Sachs and Barclays both cut their oil price forecasts, citing trade-related demand concerns and a modest increase in OPEC+ supply. Goldman now sees Brent crude averaging $69 per barrel in 2025, while Barclays said downside risks to its $74 forecast have increased significantly due to the growing impact of the trade war.

USD/JPY swung around in a wide range145.60 or so to 146.60 and thereabouts. EUR, GBP, CAD are all not a lot net change on the session. Just before writing this up AUD and NZD came under selling pressure, with no real fresh catalysts to point to. If the global economy is going to come under pressure from the drastic trade war ramp up the moves makes sense, though.

This article was written by Eamonn Sheridan at www.forexlive.com.