US and China tariff tensions continue to dominate the focus as Wall Street has pinned its hopes on signs of a thaw.
On Friday, reports emerged that China quietly rolled back tariffs on some US semiconductors, easing pressure on its tech sector. Bloomberg reported that Beijing is also weighing tariff relief on medical gear and chemicals, lifting hopes for trade de-escalation.
In addition, China may exempt US ethane and LPG imports from tariffs if trade talks progress, Goldman Sachs says.
The developments come as China has struck a publicly defiant tone, even as President Trump has embraced a softer tone toward Beijing this week.
“The US should … thoroughly remove all unilateral tariffs” if it “really wants to solve the problem,” said Commerce Ministry spokesman He Yadong, denying reports of the existence of trade talks.
Trump claimed that his administration was talking with Beijing, even as he declined to specify who took part in negotiations.
“It doesn’t matter who ‘they’ is. We may reveal it later, but they had meetings this morning, and we’ve been meeting with China,” Trump said at the White House.
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%.”
Treasury Secretary Scott Bessent suggested a US-South Korea trade deal could happen next week, praising South Korea’s approach. In an interview with Time magazine that was published on Friday, Trump said he expects many trade deals to fall in place over the next three to four weeks.
While China takes the spotlight, 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.
Here are the latest updates as the policy reverberates around the world.
LIVE674 updates
Trump on tariffs: ‘I own the store, and I set prices’
There are some revealing comments on his overall tariff philosophy:
And the story offered some insight into the immediate bloodbath in the markets after his “Liberation Day” announcement — “the bond market was getting the yips, but I wasn’t” — as well as what happens from here.
Of note, he said he would consider it a “total victory” if the US has tariffs as high as 50% on all foreign imports a year from now. That’s a bigger number than many of the “reciprocal” tariffs he ended up pausing — but smaller, of course, than the 145% on most imports from China.
On China:
Trump told the magazine that he expects to have a slew of trade deals wrapped up over the next three to four weeks. Whether China is a part of that is unclear — as you can see from scrolling down to some of today’s other coverage.
Switzerland said it’s one of 15 countries that will get “somewhat preferential treatment,” after agreeing to tariff negotiations with the Trump administration.
Levies will be held at 10% during negotiations, even if they extend beyond President Donald Trump’s 90-day tariff pause, Swiss President Karin Keller-Sutter said in Washington late on Thursday, after meeting with US Treasury Secretary Scott Bessent.
“There is no fixed timetable. But what is clear is that the 90-day deadline would be extended if you are in talks,” Keller-Sutter told reporters. “It’s good that Switzerland is one of the 15 countries that get, yes, somewhat preferential treatment here.”
A US-India trade agreement under discussion will cover 19 categories, including greater market access for farm goods, e-commerce, data storage and critical minerals, Bloomberg News reported on Friday.
The terms of reference for a bilateral deal, which was finalized by both sides this week, includes trade in goods as well as services, the report said, citing people familiar with the matter.
China considers exempting US goods from tariffs
Amid a deepening trade war with the United States, China appears to have quietly rolled back some of its steep retaliatory tariffs — including a 125% levy on key US semiconductors. Import agencies in Shenzhen discovered the exemption this week during routine customs procedures, though Beijing hasn’t made any official announcement.
This potential softening extends beyond semiconductors. Goldman Sachs reports that China may also exempt petrochemical feedstocks like ethane and liquefied petroleum gas (LPG) from tariffs, should trade talks with the US turn constructive.
Behind the scenes, Beijing is also considering lifting tariffs on other US goods like medical equipment, industrial chemicals, and plane leases.
The shift mirrors similar US decisions to exclude certain Chinese electronics from its own 145% tariff hike, signaling that both sides may be recalibrating.
Trump says he expects a tariff deal with Norway
During a meeting with Prime Minister Jonas Gahr Store, President Trump expressed optimism about the chances of reaching a new tariff deal with Norway.
President Trump says negotiating deals with everyone would be ‘physically impossible’
… but in another sign of the difficulty of the task the Trump administration set for itself, President Trump seemed to acknowledge that completing a trade deal with all 185 nations tariffed under the “Liberation Day” framework within 90 days is all but impossible.
“I can’t think of one country that doesn’t want to negotiate a deal,” Trump told reporters in the Oval Office. “And they either negotiate a deal or we set a deal that we think is fair because we don’t have to go through all of these — it would be physically impossible.”
The president’s remarks came after he met with Norway’s Prime Minister Jonas Gahr Støre to discuss the Russia-Ukraine war and tariffs.
Trump didn’t offer many details on the trade negotiations, other than to express cooperation between the two countries. Should reciprocal tariffs resume at the full amount, the 10% tariff rate on Norwegian goods bound for the US would jump to 15%.
“We get along very well on trade,” Trump said after the meeting. “I think we’ll have no problem, no problem whatsoever, with Norway.”
You can listen to the president’s remarks below:
Bessent: South Korea trade deal ‘moving faster than I thought’
Treasury Secretary Scott Bessent told reporters in the Oval Office on Thursday that the US has made progress on trade negotiations with South Korea.
“We had a very successful bilateral meeting with the Republic of South Korea today,” Bessent said. “We may be moving faster than I thought, and we will be talking technical terms as early as next week as we reach an agreement on understanding as soon as next week.”
“So South Koreans came early, they came with their A-game, and we will see if they follow through,” Bessent added.
President Trump imposed a 25% reciprocal tariff rate on imports from South Korea, which has been paused since April 9. The country’s goods currently face a baseline tariff of 10%.
Trump says US talking with China — when asked who, says ‘doesn’t matter who ‘they’ is’
After China largely rebuffed US overtures this morning, President Trump claimed that the US has been talking with China on trade and tariffs, though he declined to provide details.
Airlines, rattled by trade war and spending pullback, continue to cut flights, pull outlooks
Airlines continue to shift into defensive mode as more Americans pull back on spending and begin to fear that tariffs will tip off a recession.
Major US air carriers Delta (DAL), American (AAL), and Southwest (LUV) have pulled guidance and reduced planned capacity growth with the expectation of slowing domestic travel.
From PepsiCo to Hasbro: How tariffs are impacting balance sheets
Amid growing tariff uncertainty and shifting economic signals, companies across sectors are rethinking their profit forecasts and recalibrating expectations for the year ahead.
Here’s a list of companies feeling the impact of US tariffs on balance sheets and strategies.
PepsiCo
PepsiCo (PEP) on Thursday cut its annual profit forecast and warned of higher production costs and more volatility from President Donald Trump’s on-again off-again trade tariffs.
“As we look ahead, we expect more volatility and uncertainty, particularly related to global trade developments, which we expect will increase our supply chain costs,” CEO Ramon Laguarta said in a statement.
American Airlines
American Airlines (AAL) withdrew its 2025 financial forecast on Thursday, mirroring its peers, as concerns over discretionary budget amid tariff pressures and government spending uncertainties hinder carriers’ ability to predict travel demand.
Merck
For the full year, Merck (MRK) lowered its earnings outlook slightly, citing an estimated $200 million in additional costs for tariffs implemented to date and a charge related to a licensing deal with Hengrui Pharma.
Hasbro
Hasbro (HAS) reported first-quarter results on Thursday that beat Wall Street estimates, helped by strength in the toymaker’s digital gaming segment, sending the company’s shares up about 4% in premarket trading.
The Play-Doh owner said it would not change its annual forecast given the uncertainty related to tariffs.
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.
