How Changes in US-China Trade Are Reshaping Markets – Insights from EBC Financial Group

EBC looks at how shifts in US-China trade policies are reshaping global financial markets, driving moves in key asset classes.

A Defining Global Shift: U.S.-China trade is redefining global markets — EBC analyzes trends and outlook for investors.

DC, UNITED STATES, February 24, 2025 / EINPresswire.com / -- The latest developments between the United States and China mark a defining moment for global financial markets. As trade tensions escalate, China is strengthening its economy against external pressures, while the

U.S. is recalibrating its policies on tariffs and foreign investment. These geopolitical shifts are altering capital flows and heightening market volatility, prompting traders to reevaluate their strategies.

Financial markets are facing increasing uncertainty as trade policy changes and capital realignments increase volatility in commodities, forex and equity indices. Market participants are monitoring these developments to assess potential impacts on market movements. EBC Financial Group (EBC) has observed growing demand for safe-haven assets and hedging strategies as traders assess the risks and opportunities ahead.

Trade War Resurfaces: Market Jitters and Demand for Safe Haven Assets

China’s latest round of strategic but measured retaliatory tariffs signals a delicate balancing act—responding firmly to U.S. trade measures but avoiding excessive market disruption. Investor sentiment remains fragile, as evidenced by recent market reactions.

According to a recent Reuters report, gold prices have soared to record highs following the latest US-China tariff announcements, with spot gold hitting $2,942.70 per ounce. The report highlights how trade war concerns continue to drive demand for safe-haven assets such as gold and silver. Meanwhile, the forex market is witnessing sharp fluctuations in the USD/CNY pair, with the yuan recently hitting a three-week low against the dollar amid global trade uncertainty. Traders are closely monitoring China’s capital control measures and policy changes to assess potential downside risks.

China’s Economic Stronghold: A Shift in Global Capital Flows

China’s strategy of seeking economic self-sufficiency and alternative trade partnerships signals a critical shift in the global investment landscape. In 2013, China launched the Belt and Road Initiative (BRI), which has already built sea and river ports, rail ports and transcontinental railway systems connecting 150 countries, home to two-thirds of the world’s population. And the RCEP, signed in 2020, is the first free trade agreement between Asia’s largest economies. These initiatives are part of Beijing’s broader effort to

ensure long-term financial resilience and reduce dependence on Western markets. As China reduces its dependence on U.S. markets, precious metals may have more room to grow.

Market Waves: How Trade Policies Are Reshaping Major Asset Classes

The U.S. recently imposed a broad 10 percent tariff on all Chinese imports, prompting Beijing to respond with 10 percent to 15 percent tariffs on U.S. crude oil, liquefied natural gas (LNG), agricultural machinery and other products. These measures, along with the U.S.’s 25 percent tariff on steel and aluminum, have heightened trade tensions and raised concerns about global supply chains.

In a recent interview with CGTN America, David Barrett, CEO of EBC Financial Group (UK) Ltd., spoke about the broader implications of U.S. trade policies. “If you’re thinking about disruption, remembering that the U.S. has a big deficit in goods and a surplus in services, this is a very effective way for the European Union to do it.”

While Barrett was referring to U.S.-EU trade relations, his remarks reflect a broader trend—how major economic blocs are recalibrating their trade policies in response to U.S. tariff strategies. The same strategic realignment is unfolding in U.S.-China relations, with China responding through targeted countermeasures and alternative trade partnerships.

Additionally, China has tightened export restrictions on critical minerals essential for semiconductor manufacturing and cutting-edge technology. This strategic move not only puts pressure on key U.S. industries, but also impacts global technology supply chains, potentially affecting industrial metal prices and manufacturing costs.

EBC analysts note that these trade policies are weighing on market sentiment. Crude oil and commodity traders are closely monitoring these developments, especially as a simmering trade war could impact global growth prospects. Meanwhile, the latest U.S. tariffs have raised risks for riskier assets, amplifying uncertainty about inflation.

For forex traders, emerging market currencies may face increased volatility as capital flows adjust to the evolving trade landscape between the US and China. The USD/CNY exchange rate remains a key indicator of global risk sentiment, reflecting market reactions to ongoing political changes.

The Next Chapter: Markets Brace for a New US-China Reality

U.S. trade with China peaked in 2022 as a result of Trump’s protectionist policies in his first term. The slowdown will only accelerate with his return to the White House.

Global stocks are facing increasing turbulence as trade tensions escalate. Traders are watching closely for signs of policy adjustments that could either escalate or ease tensions, weighing on sentiment across sectors.

Staying Ahead in a Changing Financial Landscape

As the U.S.-China relationship enters a new phase of economic and financial realignment, market participants must remain agile—seeking opportunities while mitigating risks in a trading environment increasingly shaped by geopolitical forces. EBC Financial Group remains at the forefront of these developments, offering traders and investors an exceptional trading environment to navigate evolving economic conditions.

Find out more at https://www.ebc.com/ .