Shanghai finance workers react to Trump’s China tariffs amid stock market chaos

Trump’s tariff hike on China sparks concern in Shanghai’s financial district as markets reel from global uncertainty.

People are seen through the window of a taxi in the financial district of Shanghai on April 9, 2025. Photo by Hector Retamal/AFP

By Anna Fadiah and Hayu Andini

Shanghai finance workers react to Trump’s China tariffs with growing unease as global markets experience fresh volatility. As massive screens flash stock figures above one of the busiest intersections in China’s financial capital, those working in the heart of the economy are closely watching the consequences of U.S. President Donald Trump’s recent tariff decisions.

Earlier this week, global equities plunged after Trump initially threatened sweeping tariffs on nearly every major trading partner. But on Wednesday, in a move that both surprised and further rattled investors, he eased restrictions on several countries—while sharply increasing tariffs on Chinese imports to a staggering 125 percent. He justified the move by accusing Beijing of showing a “lack of respect” after it introduced retaliatory tariffs of its own.

For Shanghai’s finance professionals, many of whom are no strangers to market turbulence, this latest episode brought a fresh wave of uncertainty.

“Every night Trump sends out a social media post, then the market goes up or down,” said Catherine, a financial analyst in her early thirties, with a wry smile. “Us finance professionals are getting first-hand experience of this.” Standing beneath a gleaming bronze bull statue near the Lujiazui financial district, she described the week as one of constant motion—both in markets and morale.

Global markets caught in Trump’s crosshairs

While traders scrambled to assess the implications, the Shanghai Composite Index suffered a dramatic plunge of over seven percent on Monday. Though it has since recovered slightly, the volatility has unnerved local investors and financial experts alike.

“We think Trump’s words and deeds have attacked all our financial systems, especially the global stock market,” said a bond trader at a nearby bank, who asked not to be named due to the sensitivity of speaking on U.S.-China relations.

This sentiment echoed throughout the city’s trading floors and investment firms. The notion that a single world leader’s tweet or press conference could unsettle major indices is not new, but the scale of this week's swings was still surprising to many.

“It’s one thing to react to policy changes,” said Jun Liang, a junior portfolio manager with a Shanghai-based wealth management firm. “It’s another thing entirely when you have to track late-night Twitter posts to understand tomorrow’s trading pattern.”

Calm exterior, nervous interior

Despite the financial turmoil, the mood on the streets remained outwardly calm. At lunchtime on Thursday, workers in suits sat in sun-drenched cafes or walked in small groups through the People’s Square. The warm spring air carried a sense of normalcy, even as phones buzzed with news alerts and group chats filled with updates about market fluctuations.

For Catherine and her colleagues, however, appearances were deceiving.

“We still go out for coffee, we still smile, but inside everyone is recalculating their next move,” she said. “I’ve already spoken with two clients this week who are considering moving assets out of China—just as a precaution.”

Economic nationalism vs. global stability

Trump’s decision to raise tariffs on China, even as he pulled back on other fronts, is being interpreted in Shanghai as a political calculation aimed at reinforcing American economic dominance. But for those caught in the crossfire, particularly Chinese investors and businesses, it feels like a direct challenge.

“The increase to 125 percent is basically saying: We don’t want your goods, and we don’t care what happens next,” said a senior analyst at an international firm with regional offices in Shanghai. “That’s a tough message to digest when your economy is intertwined with global trade.”

And while some U.S. firms may benefit from tariffs in the short term, the longer-term concern in Shanghai is about erosion of trust between the two world powers.

“Markets like predictability,” Jun Liang added. “What we’re seeing is the opposite.”

Hope for a soft landing

Despite the tension, some experts in Shanghai are holding out hope that the turbulence is temporary and may even lead to eventual renegotiation.

“I don’t think this level of hostility can be sustained,” said one economist at a Chinese state think tank. “Even Trump understands that economic pain in one place can spiral into political consequences elsewhere.”

For now, though, financial workers like Catherine are just trying to manage client expectations and brace for whatever comes next.

“We tell people to think long-term, to stay the course—but we’re all watching the headlines too,” she admitted. “If tomorrow brings another tweet, there’s no telling what it might do.”

The larger picture in China’s financial capital

Shanghai has long seen itself as China’s gateway to the world—an open, modern city where global finance and local innovation intersect. That image is being tested as the trade relationship with the United States becomes more unpredictable.

From hedge funds to mom-and-pop investors, the response is mixed. Some are adjusting portfolios to hedge against further U.S. action. Others are exploring more domestic-facing investment strategies, placing greater trust in China's internal consumer market.

Still, everyone agrees: the stakes have never been higher.

A city watching the world shift

As the sun began to set over the Huangpu River, lighting up the skyline of Pudong’s towering glass buildings, Catherine paused before heading back into her firm’s offices.

“People think it’s just numbers on a screen,” she said. “But behind every red arrow or stock drop is someone making a tough decision. That’s what this week has been about.”

Shanghai finance workers react to Trump’s China tariffs not just with concern but with resilience, as they navigate one of the most volatile moments in recent market memory. Whether the next week brings relief or further chaos, one thing is clear: the world is watching, and so is Shanghai.