US and China tariff tensions continue to dominate the focus, with signs of deescalation mounting even as President Trump sent mixed signals on the state of relations.
On Monday, it was reported that Asian economies like South Korea, Japan, and India are taking the lead in trade talks with Trump’s administration, while China pledges additional support for tariff-hit exporters.
Trump’s tariff war has disrupted Washington and Wall Street for nearly a month, and if it continues, the impact will soon hit closer to home.
Since the US raised tariffs on China to 145% in April, cargo shipments have dropped dramatically, with estimates suggesting a 60% decline, per Bloomberg.
By mid-May, businesses will need to restock, and retailers like Walmart (WMT) and Target (TGT) have warned of empty shelves and rising prices. Experts predict major supply shortages and layoffs in sectors like trucking, logistics, and retail.
Reports emerged last week that China quietly rolled back tariffs on some US semiconductor products, easing pressure on its tech sector, along with certain US pharmaceuticals. Treasury Secretary Scott Bessent said Monday that those moves showed progress, saying it was “up to China” to deescalate tensions.
China has struck a publicly defiant tone and Trump sowed confusion by claiming that he had spoken with Chinese President Xi Jinping, which Beijing denied.
Trump added to the mixed messages later Friday when he said that he would drop tariffs on China unless Beijing gives the US something “substantial” in return.
Even as the bluster continued, the signs of a walk back have boosted Wall Street hopes for broader tariff deescalation after an intense back-and-forth between the world’s two largest economies. China in recent weeks has raised duties on imports of US goods to 125% from 84%, while US tariffs on Chinese imports have ballooned to, on most imports, 145%.
In an interview with Time magazine, Trump said he expects many trade deals to fall in place over the next three to four weeks.
Investors are also focused on other key tariffs, as well as 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 White House also ordered a probe into truck imports, paving the way for tariffs on the sector.
The baseline 10% tariff that went into effect on April 5 remains in place for all affected imports into the US.
Trump Tariffs Update: Bessent Urges China to Deescalate Trade Tensions
US and China tariff tensions continue to dominate the focus, with signs of deescalation mounting even as President Trump sent mixed signals on the state of relations.
On Monday, it was reported that Asian economies like South Korea, Japan, and India are taking the lead in trade talks with Trump’s administration, while China pledges additional support for tariff-hit exporters.
Trump’s tariff war has disrupted Washington and Wall Street for nearly a month, and if it continues, the impact will soon hit closer to home.
Since the US raised tariffs on China to 145% in April, cargo shipments have dropped dramatically, with estimates suggesting a 60% decline, per Bloomberg.
By mid-May, businesses will need to restock, and retailers like Walmart (WMT) and Target (TGT) have warned of empty shelves and rising prices. Experts predict major supply shortages and layoffs in sectors like trucking, logistics, and retail.
Reports emerged last week that China quietly rolled back tariffs on some US semiconductor products, easing pressure on its tech sector, along with certain US pharmaceuticals. Treasury Secretary Scott Bessent said Monday that those moves showed progress, saying it was “up to China” to deescalate tensions.
China has struck a publicly defiant tone and Trump sowed confusion by claiming that he had spoken with Chinese President Xi Jinping, which Beijing denied.
Trump added to the mixed messages later Friday when he said that he would drop tariffs on China unless Beijing gives the US something “substantial” in return.
Even as the bluster continued, the signs of a walk back have boosted Wall Street hopes for broader tariff deescalation after an intense back-and-forth between the world’s two largest economies. China in recent weeks has raised duties on imports of US goods to 125% from 84%, while US tariffs on Chinese imports have ballooned to, on most imports, 145%.
In an interview with Time magazine, Trump said he expects many trade deals to fall in place over the next three to four weeks.
Investors are also focused on other key tariffs, as well as 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 White House also ordered a probe into truck imports, paving the way for tariffs on the sector.
The baseline 10% tariff that went into effect on April 5 remains in place for all affected imports into the US.
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