On Wednesday, Reuters reported that China had quietly compiled a list of US-made goods exempt from its 125% tariffs, aiming to ease trade tensions without public concessions.
The list appears to be expanding: For instance, China recently waived tariffs on US ethane imports. This approach allows Beijing to maintain a firm public stance while offering behind-the-scenes relief. 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.
Meanwhile, President Trump defended the 145% tariffs on Chinese imports, saying China “deserves it” and would likely “eat” the costs to shield US consumers. He did acknowledge Wednesday, however, the possibility of supply shortages and higher prices for consumers.
“Somebody said, oh, the shelves are going to be open,” Trump said in a Cabinet meeting. “Well, maybe the children will have two dolls instead of 30 dolls, you know. And maybe the two dolls will cost a couple bucks more than they would normally.”
His comments contrast with quieter moves inside the administration to consider phased tariff reductions and revive trade talks with Beijing — though no formal negotiations have begun.
But with 145% tariffs on China now in place for several weeks, cargo shipments have dropped dramatically, with estimates suggesting a 60% decline, per Bloomberg. Experts are warning of coming supply shortages and layoffs in sectors like trucking, logistics, and retail.
Meanwhile, some tariff relief is on the way for automakers after Trump signed an order offering exemptions to certain car and parts tariffs.
The order clarifies that companies already paying tariffs on imported vehicles won’t be charged other levies, such as on steel. The US also eased duties on foreign parts. The climbdown comes after intense lobbying from the auto industry, which warned of a huge hit to sales and price hikes for consumers.
On Trump’s 100th day in office, administration officials also looked to play up progress with other countries. Commerce Secretary Howard Lutnick on Tuesday claimed the US and one unnamed country were on the doorstep of a trade deal. Bessent said the US was “very close” to a deal with India.
Here are the latest updates as the policy reverberates around the world.
LIVE 734 updates
Trump on tariffs: ‘Maybe the children will have 2 dolls instead of 30’
President Trump on Wednesday acknowledged the possibility of supply shortages and price increases with mammoth tariffs on China still in effect.
Responding to a question about when he plans to speak to Chinese President Xi Jinping — Trump said “it’ll happen” — Trump claimed China was “ripping off” the US and suggested much of what the country sends over to the US isn’t necessary for consumers.
“Somebody said, oh, the shelves are going to be open,” Trump said in a Cabinet meeting. “Well, maybe the children will have two dolls instead of 30 dolls, you know. And maybe the two dolls will cost a couple bucks more than they would normally.”
Trump frequently claims that his tariffs will make the country “rich,” though he has more recently acknowledged that there could be a period of transition for consumers.
Trump’s comments came as he sought to furiously push back on the latest dour economic data points emerging since he took office. The highlight Wednesday was a release showing US GDP contracted for the first time in three years last quarter.
Earlier Wednesday, Trump blamed former President Biden for the negative reading. In the Cabinet meeting, he suggested he’d also point the finger at Biden if second-quarter numbers also turned out bleak.
XPO CEO: We’re getting a ‘cautious tone’ from customers
Freight trucking company XPO (XPO) delivered an update on Wednesday on what it’s hearing from customers as tariff policy changes have upended supply chains and business forecasts.
XPO’s quarterly survey of its customers suggested that US businesses exhibited “a wide variety of behaviors,” making economic activity difficult to predict.
“Customers generally are falling in three camps,” CEO Mario Harik said. “Some customers are in a wait-and-see type pattern. Some customers are still importing goods as they always have. … And then some customers are redesigning their supply chain to get more product sourced or built locally.”
Harik noted that the company, which is more exposed to industrials, has not seen a significant pull-forward in demand. While the less-than-truckload segment focuses on domestic trade versus international trade, its quarterly results provide some early color on demand as investors search for signs of an economic slowdown.
“The majority of customers are expecting to see a flattish demand in the back half as opposed to what they were a quarter ago, where the majority were expecting an acceleration of demand in the back half,” Harik said. “So we’re getting a more cautious tone from the customers.”
How courts could upend the Trump tariffs
Yahoo Finance Senior Columnist Rick Newman writes:
Read more here.
Chinese fast fashion startup Shein looks to restructure US business
As Trump’s China tariffs shut the big loophole that makes Shein’s clothes so cheap for American consumers, the Chinese fast fashion company is seeking to adapt.
From the Financial Times:
Read more here (paywalled unless a Yahoo Finance subscriber).
How Tesla and Mercedes turned Trump tariffs into a sales pitch
The FT reports:
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US consumer spending jumps in March as buyers race to beat tariffs
US consumer spending rose in March as households rushed to buy cars ahead of expected price hikes and shortages from Trump’s tariffs, but economists say growth is still slowing.
Reuters reports:
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US economy contracts in Q1 as imports surge ahead of tariffs
Yahoo Finance’s Josh Schafer reports:
Read more here.
Euro zone consumers happy to ditch US products if hit by tariffs
Reuters reports:
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ArcelorMittal warns of trade risks while steel prices rise
Bloomberg News reports:
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Shein explores US restructuring as tariffs threaten to derail London IPO
The FT reports:
Read more here.
Trump officials eye changes to Biden’s AI chip export rule
The Trump administration is considering revisions to a Biden-era policy that restricts global access to advanced AI chips, potentially scrapping the current system that divides countries into tiers to determine how many semiconductors they can receive, according to three sources familiar with the discussions.
Reuters reports:
Read more here.
Trump flags Aussie trade talks: ‘They are calling, and I’ll talk to him’
US President Donald Trump signaled he was open to a possible call with Australia’s government about the tariffs he imposed, as Prime Minister Anthony Albanese noted the trade war could present “opportunities” for his country.
Bloomberg News reports:
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Samsung profit slows after US-China trade war hits AI spending
Bloomberg News reports:
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Stellantis, Mercedes halt 2025 guidance amid uncertainty over Trump tariffs
Stellantis (STLA) and Mercedes-Benz (MBG.DE, MBGAF) both suspended their 2025 financial forecasts due to the uncertainty around US President Donald Trump’s tariffs. Stellantis is reviewing capital spending and adjusting its production plans, while Mercedes warned that tariffs could reduce its profit margins by 300 basis points if they remain in place for the year.
Other automakers, including Volvo and Volkswagen, are also struggling with the impact of US tariffs. Stellantis reduced imports to the US and is relying on solid inventories, while Mercedes is dealing with declining sales in major markets like China and Europe, and a 41% drop in first-quarter profits.
Polestar (PSNY) has paused its 2025 forecast as it braces for the impact of new US tariffs that could disrupt supply chains and drive up car prices.
China’s factory activity slows as US tariffs hit export orders
China’s factory activity lost momentum at the start of second quarter, a private-sector survey showed Wednesday, as new export orders dropped sharply and job cuts resumed.
Reuters reports:
Read more here.
Aston Martin limits US exports to counter hit from tariffs
Aston Martin (AML.L, ARGGY) said Wednesday it is scaling back US exports to cushion the blow from steep American tariffs that have hit global carmakers. The luxury automaker posted a smaller-than-expected loss for the first quarter and projected better results ahead, briefly lifting its shares by up to 4.2% before they steadied.
Reuters reports:
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China forms list of US goods exempt from tariffs
China has created a list of products that will be exempt from the 125% reciprocal tariffs that have erupted in response to Trump’s 145% blanket levy on Chinese goods. China is letting impacted companies know privately what exemptions can be expected in the upcoming announcement.
Reuters reports:
Read more here.
Tue, April 29, 2025 at 9:48 PM UTC
Trump says China likely to ‘eat’ US tariffs, limit impact on US consumers
Bloomberg reports:
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Tue, April 29, 2025 at 8:13 PM UTC
Nasdaq recovers from ‘Liberation Day’
US stocks swung higher during a choppy day of trading on Tuesday as hopes of further tariff relief fueled gains.
The S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) jumped about 0.6% and 0.5%, respectively. The Dow Jones Industrial Average (^DJI) climbed 0.8%, or just over 300 points, extending its longest win streak of 2025.
Notably, the Nasdaq has made a full recovery since President Trump announced his “Liberation Day” tariffs, which triggered a massive sell-off in early April. The index closed near its April 1 levels.
Year to date, the Nasdaq is still down by 9.5%, while the S&P 500 and Dow are off by 5.4% and 4.7%, respectively.
Read more here.
Tue, April 29, 2025 at 6:32 PM UTC
Lutnick: ‘I have a deal done, done, done, done’
Commerce Secretary Howard Lutnick on Tuesday claimed the US and one unnamed country were on the doorstep of a trade deal.
“I have a deal done, done, done, done, but I need to wait for their Prime Minister and their parliament to give its approval, which I expect shortly,” Lutnick said on CNBC.
Lutnick did not name the country. Trump administration officials including Treasury Secretary Scott Bessent have hailed progress in negotiations with India and various countries in Asia.
“We are very close on India,” Bessent said at a White House press briefing Tuesday. He also name-checked Japan and South Korea.
The US has been working to secure trade deals with many of its top trading partners in the weeks since President Trump imposed — and then largely backtracked on — sweeping tariffs on his self-proclaimed “Liberation Day.” Bessent said the US is moving forward on negotiating with 17 top partners — not including China
