---
title: "Breakfast | XIAOMI's car manufacturing enters the darkest hour; Trump raises the \"tariff stick\" on Wednesday"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/234125308.md"
description: "Nvidia rose over 1%, ending a five-day decline; Johnson & Johnson fell 7.6%, dragging the Dow Jones down; Newsmax surged over 2000% in two days since its listing. After the U.S. manufacturing index, the yield on the 10-year U.S. Treasury hit a four-week low, and the U.S. dollar index turned lower. Bitcoin surged over $3000 during the session, breaking through the $85,000 mark"
datetime: "2025-04-01T23:58:19.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/234125308.md)
  - [en](https://longbridge.com/en/news/234125308.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/234125308.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/234125308.md) | [繁體中文](https://longbridge.com/zh-HK/news/234125308.md)


# Breakfast | XIAOMI's car manufacturing enters the darkest hour; Trump raises the "tariff stick" on Wednesday

### **Market Overview**

Before the tariff announcement, the S&P 500 narrowly closed higher, and the Nasdaq halted a four-day decline. Tesla rose over 3%, leading the seven tech giants, while Nvidia increased over 1%, ending a five-day drop. Johnson & Johnson fell 7.6%, dragging the Dow Jones slightly lower. The new stock Newsmax surged 22 times in the first two days of trading, while CoreWeave rebounded nearly 42% on its third day of trading.

The China concept index reversed two consecutive declines, with Xiaomi dropping nearly 6% and Pinduoduo rising over 3%.

After the U.S. manufacturing PMI data, U.S. Treasury yields hit a daily low, with the ten-year yield reaching a four-week low, and the dollar index quickly turned lower.

After speeches by Carney and Sinbaum, the Canadian dollar and Mexican peso hit their respective daily highs; the offshore yuan fell over 200 points during the day, breaching 7.28; Bitcoin surged over $3,000 during the day, breaking through the $85,000 mark.

Gold turned lower after hitting an intraday historical high for four consecutive days. Oil prices retreated, ending a two-month high. London tin rose over 2%, marking six consecutive days of gains and reaching a nearly three-year high; London aluminum fell for the ninth consecutive day.

During the Asian session, A-shares surged and then retreated, with the Shanghai Composite Index rising 0.38%, driven by a boom in the pharmaceutical and biotechnology sector. The Hang Seng Index rose 0.2%, while Xiaomi closed down over 5%.

### **Ahead of Delivery Data, Tesla's Stock Price Soared Over 7% Intraday**

Tesla's stock price unexpectedly rebounded strongly during Tuesday's trading, rising over 7% at one point, and ultimately closing up 3.59%, shaking off the previous weeks' downturn.

This rebound occurred on the eve of Tesla's announcement of first-quarter delivery and production data on Wednesday, with multiple institutions expecting Tesla's Q1 delivery figures to be the worst since Q4 2022.

In the Chinese market, Tesla's February sales plummeted nearly 50% year-on-year. In the European market, Tesla's registration in France for March was only 3,157 vehicles, a year-on-year decrease of 37%, while sales in the German household market plummeted by 76%. In the U.S. market, annual sales for 2024 are expected to decline year-on-year for the first time, with only a 2.3% growth in Q4 last year, far below the industry average growth rate of 15%.

Current market expectations for Tesla's Q1 delivery data are extremely pessimistic. According to the latest predictions from 15 analysts compiled by Visible Alpha, Tesla is expected to deliver approximately 373,000 vehicles in the first quarter, a year-on-year decrease of 3.6%. Deutsche Bank is even more pessimistic, predicting delivery volumes between 340,000 and 350,000 vehicles, below last year's level of 387,000 vehicles.

### **White House Says Trump Will Announce Reciprocal Tariffs on Wednesday, Global Concerns About Escalating Trade War**

The White House confirmed on Tuesday that President Trump will announce a series of reciprocal tariffs on Wednesday, but did not disclose details such as the scale and scope of the tariffs. Businesses, consumers, and investors are concerned that this move will lead to an escalating global trade war. For weeks, Trump has been declaring April 2 as "Liberation Day," when the U.S. will introduce large-scale reciprocal tariffs that could disrupt the global trading system, and plans to announce these new tariffs at 4 PM Eastern Time in the White House Rose Garden. White House spokesperson Levitt stated that the reciprocal tariffs will take effect immediately after Trump's announcement, with a 25% tariff on automobiles starting on April 3The Washington Post reported that White House staff proposed imposing tariffs of about 20% on most U.S. imported goods; markets and consumers are currently awaiting details of Trump's reciprocal tariff plan.

The Canadian Prime Minister's Office stated that Prime Minister Carney discussed Canada's plan to "counter unreasonable trade actions by the U.S." with Mexican President Sheinbaum.

### **Xiaomi's Car Manufacturing Enters Darkest Hour**

Lei Jun responded to the Anhui SU7 accident, stating that he felt very heavy-hearted about the incident on the evening of the 29th. The unfortunate deaths of three young girls are unbearable grief for their families, friends, and each of us. On behalf of Xiaomi, I express my deepest condolences and extend sincere sympathies to their families. On Tuesday Eastern Time, Xiaomi Group's ADR fell nearly 7.6% during trading, closing down 5.8%.

The public's confidence in intelligent driving has been dampened. From the user's perspective, the most commonly used intelligent driving functions are still L2-level lane keeping, automatic lane changing, adaptive cruise control, etc., which are generally used on highways, and users are hesitant to try them on city roads. Currently, what users feel most acutely is: range anxiety.

### **U.S. IPO New Stock Frenzy**

CoreWeave rebounded nearly 42%, and Newsmax surged 22 times in two days. On Tuesday Eastern Time, AI cloud computing company CoreWeave strongly rebounded by 41.77%, exceeding its issue price, with a market value surpassing $24.3 billion. Another media company, Newsmax, surged 2240% in two days.

### **Tariff Issues Lead to U.S. Manufacturing Contraction in March, Weakening Labor Demand**

After two consecutive months of growth, U.S. manufacturing contracted in March, while the factory input price index surged to its highest level in nearly three years due to rising concerns over tariffs on imported goods. The survey report released by the Institute for Supply Management (ISM) provided a pessimistic assessment of business conditions, with manufacturers citing tariffs as a major factor. President Trump's wave of tariffs has weakened the confidence of businesses and consumers. ISM reported that its manufacturing PMI fell from 50.3 in February to 49.0 last month, while a Reuters survey predicted a drop to 49.5. Another report from the Labor Department showed that as of the last day of February, job vacancies, which measure labor demand, decreased by 194,000 to 7.568 million, highlighting weakened labor demand.

The latest U.S. employment data and weak manufacturing reports underscore the emerging concerns among Federal Reserve policymakers: employment may decrease, but the risk of new inflation triggered by tariffs limits their ability to take any action.

### **Is the Risk of U.S. Economic Recession Increasing?**

The latest GDPNow growth forecast from the Atlanta Federal Reserve for the first quarter is -3.7%, down from the previous -2.8%. Considering the impact of the U.S. "gold rush" on imports, the adjusted interest rate for gold has dropped from -0.5% to -1.4%.

### **Russia Claims It Cannot Accept the Current U.S. Proposal to End the Ukraine War**

A senior Russian diplomat stated that Russia cannot accept the current U.S. proposal to end the Ukraine war, as these proposals fail to address the fundamental issues that Moscow believes led to the conflict, indicating that negotiations between the U.S. and Russia on this issue have reached an impasse. The remarks by Russian Deputy Foreign Minister Ryabkov suggest that Moscow and Washington have yet to bridge their differences. Kremlin spokesman Peskov told reporters earlier on Tuesday that Moscow "is continuing to engage with the U.S.... This issue is very complex. The Ukraine issue we are discussing involves many complicated factors and requires a lot of additional effort."

U.S. CNN reported, citing a U.S. official and two sources familiar with the plans, that a Russian official is expected to visit Washington this week for talks with the Trump administration.

Ukrainian Foreign Minister Kuleba stated that Ukraine will work with the U.S. to strive for a mineral agreement text acceptable to both countries.

### **Wang Yi on the China-U.S. Trade War: If the U.S. Continues Various Extortion, China Will Firmly Counter**

Wang Yi stated that the abuse of fentanyl in the U.S. is an issue that the U.S. must face and resolve itself. China is the country with the strictest and most thorough drug control policies in the world today. In the spirit of humanitarianism, we provide various assistance to the U.S., but the U.S. imposes unwarranted tariffs in return, which raises the question of whether it truly wants to solve the problem or is deliberately creating conflicts. If the U.S. genuinely wants to address the fentanyl issue, it should remove the unreasonable tariffs and engage in equal negotiations with China to seek mutually beneficial cooperation. China has never accepted hegemonic power; if the U.S. continues to exert pressure and engage in various forms of extortion, China will firmly counter.

### **Foreign Ministers of China and Russia Hold Talks, Wang Yi: China-Russia Comprehensive Strategic Cooperation Will "Revitalize"**

Chinese Foreign Minister Wang Yi stated during talks with Russian Foreign Minister Lavrov in Moscow that China is willing to implement the consensus reached by the leaders of the two countries and jointly promote the development of China-Russia relations and cooperation in various fields; he believes that under the strategic guidance of the two heads of state, the comprehensive strategic cooperation between China and Russia in the new era will surely "revitalize" and enter a new stage.

The Russian Foreign Ministry stated that Foreign Minister Lavrov and Chinese Foreign Minister Wang Yi discussed the situation on the Korean Peninsula and Iran's nuclear program. The two sides also discussed the Ukraine conflict and the necessity of reaching a lasting peace agreement.

### **March Electric Vehicle Performance Report Released**

Leapmotor topped the delivery chart for the first time, XPeng saw a year-on-year increase of 268%, and ZEEKR's sales surpassed 40,000. Leapmotor delivered 37,095 units, marking its first time at the top of the new car-making forces' delivery list; XPeng delivered 33,205 smart electric vehicles in March, exceeding 30,000 units for the fifth consecutive month; Li Auto's delivery volume increased by 26.5% year-on-year; Nio's deliveries increased by 26.7% year-on-year

### Related Stocks

- [Tesla, Inc. (TSLA.US)](https://longbridge.com/en/quote/TSLA.US.md)
- [XIAOMI-W (01810.HK)](https://longbridge.com/en/quote/01810.HK.md)

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