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 Friday, reports emerged that China quietly rolled back tariffs on some US semiconductors, easing pressure on its tech sector, along with certain US pharmaceuticals. Bloomberg reported that Beijing is also weighing tariff relief on medical gear and chemicals.
The developments came as 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. "China and the US are NOT having any consultation or negotiation on #tariffs. The US should stop creating confusion," the Chinese Embassy in Washington wrote on social media.
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 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%.
Meanwhile, 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. 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. LIVE 677 updates
