Global Markets on Edge as US-China Trade Negotiations Collapse Before They Begin

Financial markets reacted violently to China’s trade talk rejection, with the S&P 500 dropping 1.8% and Hong Kong’s Hang Seng tumbling 3.2%. The breakdown threatens to reignite inflation just as central banks struggle to stabilize prices.

Market Impacts:

• Copper prices surge 5% on supply chain fears

• Yuan falls to 7.32 against dollar (lowest since Nov 2022)

• Tesla shares down 7% on dual tariff threats

Corporate Fallout:

1. Walmart scrambling to diversify beyond Chinese suppliers

2. Micron warns of renewed Chinese retaliation

3. PVH (Calvin Klein) moving 30% production to Vietnam

Long-Term Projections:
Goldman Sachs models show:

• 0.7% lower global GDP growth if stalemate continues

• 15% upside for Mexico/India as alternative manufacturing hubs

• 12-18 month delays for renewable energy projects