Chinese state-run media said late Wednesday that the Trump administration has quietly reached out to Beijing to kick off tariff talks. Despite President Trump’s public stance that President Xi must make the first move, the development represents the latest behind-the-scenes thawing of relations.
Trump told his Cabinet on Wednesday that falling cargo flows showed China would soon need to engage. Trump said he was confident he’d speak with Xi.
But a post from Yuyuantantian, a Weibo account affiliated with China Central Television that regularly signals Beijing’s views on trade, said China won’t engage unless the US takes “meaningful measures.” The post added that Washington appears to be the more anxious party under growing pressure.
Reuters reported the day prior that China quietly compiled a list of US goods exempt from its 125% tariffs, aiming to ease trade tensions without making public concessions. The list is expanding, with recent waivers on US ethane, some semiconductor products, and certain pharmaceuticals, offering behind-the-scenes relief while maintaining a tough public stance.
Trump defended the 145% tariffs on Chinese imports, claiming China “deserves it” and would likely absorb the costs. While acknowledging potential supply shortages and higher prices, he downplayed concerns, saying shelves might have fewer toys and they’d cost a bit more.
Trump’s comments contrast with efforts inside the administration to consider phased tariff reductions and revive trade talks with China, though no formal talks have begun. With 145% tariffs on China in place, cargo shipments have dropped 60%, raising concerns of supply shortages and layoffs in 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.
LIVE744 updates
McDonald’s earnings miss, US sales slump amid ‘uncertainty’
McDonald’s missed Wall Street estimates in the first quarter as US sales and traffic declined, reflecting growing consumer caution and economic uncertainty. The fast food giant is struggling to navigate a shaky backdrop amid volatile trade policies.
Yahoo Finance’s Laura Bratton, breaks down what the earnings reveal about the fast food giants position in a jittery consumer market.
Read more here.
Markets set for shock from disappearing Chinese goods
Bloomberg News reports:
Read more here.
GM cuts 2025 profit forecast as tariff results in up to $5B impact
Reuters reports:
Read more here.
Warren Buffett: ‘We can’t do as well as we did in the past’
Warren Buffett has long warned that Berkshire Hathaway’s (BRK-B, BRK-A) future returns won’t match its past. Now, Trump’s tariffs are adding fresh pressure to parts of the business.
Reuters reports:
Read more here.
Ryanair threatens to seek alternative to Boeing order if tariffs impact price
Reuters reports:
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The month that Trump blinked on trade
Reports show that President Trump’s hardline tariff strategy is easing, with significant rollbacks in recent weeks. Yahoo Finance’s Washington correspondent Ben Werschkul reports on the month when Trump blinked on trade:
Read more here.
Trump barely defeats challenge to his tariff war in Senate
Donald Trump only just managed to block an attempt in the US Senate to stop his global tariff plans, as his trade policies are making more people worry about rising prices and a possible recession.
Bloomberg News reports:
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US tariff fears hit UK factory exports in April: PMI
British factory exports saw their steepest decline in nearly five years in April, while cost pressures mounted, a survey showed — highlighting the strain from President Trump’s trade war and a recent tax increase on UK employers.
Reuters reports:
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Tariffs, oil prices and other uncertainties weighing down Mideast economies: IMF
AP reports:
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US has reached out to China to initiate tariff talks: Report
The Trump administration has quietly reached out to Beijing through multiple channels to kick off talks on the sweeping tariffs the US has imposed on Chinese goods, according to a post from Yuyuantantian, a state-linked Weibo account often used to reflect China’s trade stance. The post, citing unnamed sources, offered no specifics but signals potential backchannel efforts to ease tensions.
Bloomberg News reports:
Read more here.
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:
Read more here.
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:
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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:
Read more here.
Shein explores US restructuring as tariffs threaten to derail London IPO
