China rejected US trade overtures Thursday, demanding all tariffs be lifted and denying any progress in talks. “The US should… thoroughly remove all unilateral tariffs… if it really wants to solve the problem,” said Commerce Ministry spokesman He Yadong, calling reports of ongoing negotiations “groundless.”
Separately, China’s central bank governor Pan Gongsheng warned that global tensions could lead to “high friction, low trust,” urging stronger international cooperation as US-China talks remain stalled despite Trump’s softer rhetoric on tariffs.
Stocks slipped Thursday after a surge the day before, fueled by hopes of easing trade tensions with China. On Wednesday, Treasury Secretary Scott Bessent denied a report that the White House may unilaterally cut tariffs, stressing that both sides must act. “This is the equivalent of an embargo,” he said, adding that current tariff levels aren’t sustainable.
President Trump had hinted at a trade-war deescalation with China on Tuesday, saying of the tariff levels: “145% is too high. It will come down substantially.”
He said he was optimistic about trade talks, adding that he plans to be “very nice” to China to reach a deal.
The back-and-forth between the world’s two largest economies has intensified in recent weeks: China raised its duties on imports of US goods to 125% from 84%, while US tariffs on Chinese imports have ballooned to “a 125% reciprocal tariff, a 20% tariff to address the fentanyl crisis, and Section 301 tariffs on specific goods, between 7.5% and 100%.”
In its earnings report, Tesla (TSLA) became one of the first major firms to flag the fallout from part of the burgeoning trade war. It said production of its Optimus household robot had been disrupted by China’s recent rare earth export curbs.
Meanwhile, on Tuesday, US Vice President JD Vance and India’s Prime Minister Narendra Modi signaled progress on negotiations, including in the areas of technology, defense, and energy.
Investors are also focused on possible delays and exemptions: Trump is reportedly planning an exemption on some auto parts levies after suspending duties on some consumer tech, even as he insists these tariffs will eventually come to fruition.
The baseline 10% tariff that went into effect on April 5 remains in place for all affected imports into the US.
Here are the latest updates as the policy reverberates around the world.
China dismisses trade progress as ‘groundless’ amid tariff tensions
China has demanded the US revoke all unilateral tariffs, claiming there have been no discussions on a trade deal. He Yadong, a Ministry of Commerce spokesman, dismissed reports of progress, urging the US to show sincerity if it wants a resolution.
President Trump’s recent comments suggested he may lower tariffs on Chinese goods, but these moves have not been enough to de-escalate tensions. China has remained cautious, calling the high tariffs “meaningless” and warning of the long-term impact on global trust.
Yahoo Finance’s Ben Werschkul highlights that Trump’s team has aggressively touted trade progress, boosting optimism in the markets. However, these claims have not been backed by concrete signs of progress.
Markets pulled back on Thursday morning as conflicting signals from the White House caused confusion. Treasury Secretary Scott Bessent stated that tariffs must first be reduced before formal talks can begin, while China waits for a more respectful approach.
Trump sued by 12 states over tariffs, trade policy
A dozen US states have filed a lawsuit to stop President Trump’s tariffs, arguing that the tariffs are unlawful because they bypassed Congress. The states challenging Trump’s tariffs include Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Maine, Nevada, New Mexico, New York, and Vermont.
Trump set to ‘destack’ tariffs for auto makers: FT
President Trump, in his latest tariff walk back, is set to exempt automakers from some of the “most onerous” tariffs they face, according to he Financial Times.
Here’s the key part of the report:
Ford (F), GM (GM), and Tesla (TSLA) were among the auto stocks that rose in after-hours trading after the FT report.
How the CEO of this elevator giant is navigating Trump tariffs
Elevator maker Otis (OTIS), which was established in 1853, has seen quite a few economic cycles. And as its products are key construction components, it’s often considered an economic bellwether in markets like the US and China.
But the recent trade volatility hasn’t been easy for Otis, veteran CEO Judy Marks told Yahoo Finance’s Brian Sozzi.
“Right now, some sources for some components are at scale in China that we don’t manufacture,” Marks told Sozzi. “We’ve searched for sources here. We’re moving supply around. We’ve asked suppliers to set up manufacturing facilities here, because it’s just not things we would do, but everything else. We do have the ability, because of this common platform, to manufacture here in the United States and to assemble in Florence.
“I think we’ve mitigated the majority of the tariff impact. It’s a lot bigger number than it was in 2018, when the tariffs were between maybe 15% and 25%, between section 301 and section 232, but, you know, these retaliatory tariffs at 145%-plus, that’s what’s really added up.”
As more corporate earnings roll in, investors are gaining more insight into how a wide range of companies are responding to President Trump’s economic policies through mitigation strategies and direct appeals to the administration.
“I’ll continue to advocate for lower tariffs rather than higher tariffs, but that’s all I can do,” Tesla CEO Elon Musk told investors on Tuesday.
“I don’t think a day goes by where we aren’t engaged with someone in the administration, including … Cabinet secretaries and up to POTUS himself,” Boeing’s (BA) new CEO Kelly Ortberg said about navigating US-China trade tensions.
“The current environment will now mean greater costs across our global supply chain versus our expectations at the beginning of the year,” said Mike Hsu, the CEO of Kleenex maker Kimberly-Clark (KMB).
Big Tech earnings are on deck next. Yahoo Finance’s Dan Howley has a preview of what Wall Street expects when Apple (AAPL), Microsoft (MSFT), AMD (AMD), Nvidia (NVDA), Google (GOOG, GOOGL) parent Alphabet, and others report.
Musk on Trump tariffs: I’m an advocate for ‘free trade and lower tariffs’
Tesla said that trade uncertainty drove the weakness in the company’s first quarter results. Its CEO, Elon Musk, also expressed his support for lower tariffs, despite his close ties with the president.
The market is cheering Trump’s positive tariff signals. Deal details remain scarce.
President Trump and his team have often touted their ambitious efforts to strike trade deals in the 90-day reciprocal tariff pause period. But even as the administration’s claims prompt a stock market rally the past two days, there hasn’t been concrete evidence of progress.
Stocks soar as tariff relief rally sweeps Wall Street
US stocks rallied Wednesday after President Trump and Treasury Secretary Scott Bessent hinted that a deescalation in the US-China trade war could be in the offing.
The S&P 500 (^GSPC) was up 3%, while the Dow Jones Industrial Average (^DJI) added roughly 1,000 points, or over 2.5%. The Nasdaq Composite (^IXIC) led the gains, soaring 4.2%.
Big Tech stocks, including Tesla (TSLA), Nvidia (NVDA), Amazon (AMZN), and Meta (META), popped on the news. And corporations continue to provide updates on their tariff strategies as earnings roll in today from Boeing (BA), Chipotle (CMG), IBM (IBM), and AT&T (T).
Tariffs bite as US business activity slows and firms hike prices
US business activity dropped to it’s lowest level in 16 months in April, while prices for goods and services surged, driven by tariff-related uncertainty.
Citing people familiar with the matter, the Journal reported the Trump administration is also considering a “tiered approach” where the US provides levies of 35% on items not deemed a “threat to national security.” Meanwhile levies could be as high as 100% on items deemed “as strategic to America’s interest.”
The report comes less than 24 hours after Trump said the final China tariffs aren’t expected to be 145%. Trump said he expects the levies to come down “substantially,” while Treasury Secretary Scott Bessent called them “unsustainable.”
Tariffs may mean more US steel jobs. Will there be workers to fill them?
Thomas Reisinger commutes nearly 90 minutes each way to a steel plant in eastern Arkansas, where some of his coworkers live in RVs during the week to be closer to work. While former President Trump’s tariffs aimed to revive US manufacturing by protecting industries like steel, the real challenge facing plants like this isn’t foreign competition—it’s finding enough workers.
China said it is open to trade talks with the US but struck a still-defiant tone in its first reaction to President Trump’s hint that the level of tariffs between the two countries is unsustainable.
“China’s attitude towards the tariff war launched by the US is quite clear: We don’t want to fight, but we are not afraid of it. If we fight, we will fight to the end; if we talk, the door is wide open,” Foreign Ministry spokesperson Guo Jiakun said Wednesday, per The Wall Street Journal.
Guo said the US “should stop making threats and coercions and engage in dialogue with China on the basis of equality, respect, and mutual benefit.”
Trump and China President Xi Jinping haven’t spoken since the former retook office in the US, and there are no indications of trade discussions between the two countries. China has signaled in recent weeks that it wants certain conditions met before any trade talks, including more “respect.”
So for now, this appears to just be a shift in message — but one that markets are taking as a good sign.
Americans expect tariff-driven price surge. Companies say they’re right.
Yahoo Finance’s Head of News, Myles Udland, explains how rising tariffs are prompting companies like Verizon (VZ) and 3M (MMM) to pass higher costs on to consumers:
EU fines Apple and Meta millions, fueling tensions over potential tariffs
Apple (AAPL) was fined $570 million and Meta (META) $228 million by the European Union on Wednesday, marking the first penalties under new laws aimed at curbing Big Tech’s dominance.
These fines could intensify tensions with US President Donald Trump, who has warned of potential tariffs on countries targeting American firms.
Tesla humanoid robot plan hampered by China rare earth curbs
Tesla’s (TSLA) production of its Optimus robot, designed to handle household tasks, has been impacted by China’s recent restrictions on rare earth exports. These curbs, introduced earlier this month, are a response to the ongoing trade tensions between China and the US.
Tesla (TSLA) sees India’s 100% import tariffs on cars making customers anxious, and the carmaker is still assessing when to enter the “very hot” market even as those concerns linger, its chief financial officer said on Tuesday.
Tesla has long wanted to sell in the world’s third-largest car market, but high tariffs, which its chief Elon Musk has said are among the steepest in the world, have been a deterrent.
Even so, Tesla has in recent weeks finalised some showroom space in India and posted more than two dozen jobs, signalling it is getting closer to a launch. Commercially available custom records show that in March, Tesla imported a Model Y car to India from Germany at a shipment value of $46,000.
US opens door to cutting UK auto tariffs from 10% to 2.5%
The Wall Street Journal has cited an early draft of an upcoming trade deal being pushed by the US onto the UK. Lowering levies is the main point of interest in the meeting between London and Washington this week.
Trump says eye-popping China tariff level will come down ‘significantly’
President Trump on Tuesday suggested sky-high tariff levels on Chinese imports would eventually decrease.
“145% is very high, and it won’t be that high,” Trump told reporters Tuesday afternoon.
He added: “It will come down substantially,” but “it won’t be zero. It used to be zero.”
Trump’s comments came after Treasury Secretary Scott Bessent boosted optimism for deescalation in the US’s trade war with China. Bessent told investors that the administration does not view the current situation as sustainable, as Yahoo Finance’s Jennifer Schonberger reported.
US tariffs on most imports from China have reached 145% as the two countries traded blows in recent weeks. China has raised levies on US imports to 125%.
US intends to slap tariffs as high as 3,500% on Southeast Asian panel exporters
Yahoo Finance’s Ines Ferré reports that producers in Cambodia face tariffs as high as 3,521% for not cooperating with the yearlong investigation, while levies on Vietnamese exporters reach as high as 813%. Solar imports from Malaysia and Vietnam were also included in the tariff announcement on late Monday.
Ines noted that solar companies were pushing for the tariffs as the latest policy incentive to help them shift operations to the US:
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