China expressed openness to trade talks with the US on Wednesday, under certain conditions, even after the White House clarified that “China now faces up to a 245% tariff on imports to the United States.”
US stocks sank deep into the red Federal Reserve Chair Jerome Powell discussed pressures that tariffs could bring to the economy.
Michelle Lam, Greater China economist at Societe Generale SA, explained to Bloomberg that Beijing wants “respect, consistency and a point person” as focus grows on the trade war between the world’s two largest economies.
Chinese state media also reiterated that China would ignore the “numbers game” of escalating duties.
Semiconductor company ASML (ASML) spooked investors on Wednesday, reporting weaker-than-expected orders and admitting it can’t yet assess the impact of new US tariffs.
Also on Wednesday, Nvidia (NVDA) stock sank after the AI chipmaker disclosed that it would take a $5.5 billion hit from the US government’s surprise new controls on its semiconductor exports to China.
The twin developments underscore how the trade war is already hitting global firms hard — with consequences likely to ripple through chip earnings and China’s tech ambitions alike.
US Treasury Secretary Scott Bessent told Yahoo Finance on Tuesday that he was optimistic about “clarity” on tariffs and progress on key trade deals over the next 90 days, as Trump simultaneously sought to ramp up pressure on China to come to the negotiating table.
“Let’s set aside China. There are 15 large trading partners. We set aside China,” Bessent told Yahoo Finance Executive Editor Brian Sozzi. “There are 14, and we’re in rapid motion and setting up a process for the 14 largest trading partners.”
The comments come as Trump instituted a broad 90-day pause on steep “Liberation Day” tariffs, aiming to give time for negotiators to work out new deals.
The tit-for-tat between the world’s two largest economies, meanwhile, has intensified: 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%.”
Investors are also focused on possible delays and exemptions to Trump’s sweeping tariffs.
Trump has signaled a possible delay to auto tariffs, adding to market relief after suspending levies on some consumer tech, even as he insists these tariffs will eventually come to fruition.
Late Monday, the Trump administration took a key step toward tariffs on semiconductor and drug imports, as the Commerce Department began an investigation seen as a precursor to imposing the levies.
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.
