Global Trade Tensions: Toyota Hit by Trump’s Tariffs, New Trade Deal on the Horizon, and China Continues to Boost Gold Reserves

Markets are witnessing significant shifts as Toyota’s profits decline, Trump prepares to announce a new trade agreement, and China continues its gold-buying spree amid ongoing economic tensions.

Table of Contents

Toyota
Trump
China

Toyota

it Expects 21% Drop in Annual Profits Due to Tariffs and Yen Appreciation

Toyota Motor Corporation has forecasted a 21% decline in its operating profits for the fiscal year ending March 2026,
with expected earnings of approximately ¥3.8 trillion ($26 billion) compared to ¥4.8 trillion in the previous fiscal year.
This decline is attributed to mounting pressure from U.S. tariffs imposed by President Donald Trump, as well as the appreciation of the Japanese yen.

Despite strong demand for hybrid vehicles, Toyota is facing significant challenges stemming from volatility in U.S. trade policy, particularly concerns about waning consumer confidence in the U.S. market and others. The company noted that the impact of the tariffs extends beyond exports to the U.S., potentially affecting global buying sentiment amid a trade environment filled with tension.

Trump

Trump to Announce First Trade Deal of His Second Term Amid Speculation Over Partner

President Donald Trump is set to announce the first trade agreement of his second term during a press conference today (Thursday) at 10 a.m. Washington time. This comes after a series of tariffs imposed by his administration, which have triggered volatility in global markets.

In a post on Truth Social, Trump did not reveal the name of the country involved but described it as a “large and highly respected nation.”
He emphasized that this would be the first such agreement in his current term but “not the last.”

Earlier this month, Trump hinted that several trade deals were in the pipeline with various countries.
These deals aim to ease tensions caused by elevated tariff policies, particularly among partners seeking exemptions or reductions.

Attention is now focused on a group of likely early signatories, including India, Japan, and South Korea,
all of which match Trump’s description of the “unnamed trade partner.”

According to official statements, Vice President J.D. Vance confirmed last week that India is the leading candidate for a near-term agreement. Negotiations are also said to involve Japan, South Korea, and certain European entities, signaling the potential expansion of U.S. trade policy in the coming phase.

China

China Continues to Increase Gold Reserves for Sixth Consecutive Month

Official data released by the People’s Bank of China on Wednesday showed that Beijing continued to increase its gold reserves in April,
highlighting its strategy to diversify reserve assets amid rising geopolitical and economic tensions.

According to Bloomberg, the central bank added approximately 70,000 troy ounces of gold during the month,
raising total reserves to 73.77 million ounces by the end of April, up from 73.70 million ounces in March.

In dollar terms, gold reserves rose to $243.59 billion, compared to $229.59 billion in the previous month,
in line with the global increase in gold prices during the same period.

This marks the sixth consecutive monthly increase in gold holdings, underscoring China’s commitment to enhancing the stability of its foreign reserves by shifting away from U.S. dollar-denominated assets amid global economic uncertainty.

Global Trade Tensions: Toyota Hit by Trump’s Tariffs, New Trade Deal on the Horizon, and China Continues to Boost Gold Reserves

Global Trade Tensions: Toyota Hit by Trump’s Tariffs

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