Yahoo Finance

Fri, April 25, 2025 at 7:02 AM CDT

Unlock stock picks and a broker-level newsfeed that powers Wall Street.

LIVE

Updated Today at 6:31 AM MDT

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.

(http://www.autoadmit.com/thread.php?thread_id=5715948&forum_id=2#48879499)