The EU has tabled a fresh trade proposal to the US as it tries to revive stalled talks with President Trump’s administration. The offer includes phased tariff cuts on non-sensitive goods, plus cooperation in energy, AI, and digital infrastructure. The EU is readying $108B in retaliatory tariffs if talks fail.
To sweeten the deal, EU officials are also willing to extend a 2020 tariff-free arrangement on US lobster imports, as reported by the FT. That pact, which expires in July, helped boost US exports to the bloc and could form part of a broader trade package.
The trade truce between the US and China appears increasingly fragile, as both sides trade barbs just more than a week after sending markets into euphoria by pausing sky-high tariffs on one another.
China’s Commerce Ministry said Wednesday that it would take legal action against any organization or individual assisting the US in discouraging the use of China’s advanced semiconductors.
Earlier, the US Commerce Department had warned that using Huawei chips anywhere in the world would violate US export controls — before later removing the reference.
The back-and-forth casts a shadow over the trade thaw, as focus turns to broader dialogue amid the 90-day tariff pause. The “reciprocal” tariffs have already had profound effects on the countries’ trade: Chinese shipments of Apple’s (AAPL) iPhone and mobile devices to the US fell to their lowest since 2011 in April.
Businesses and leaders continue to warn about the early effects of the tariffs. JPMorgan (JPM) CEO Jamie Dimon said Wednesday that he can’t rule out that the US economy will fall into stagflation as the country faces huge risks from geopolitics, deficits and price pressures.
Last week, Walmart (WMT) also previewed coming price hikes, sparking a rebuke from Trump, who told the company to “eat the tariffs.”
The warnings come as the Trump administration has ratcheted up its rhetoric over the last several days. Treasury Secretary Scott Bessent said on Sunday that tariff rates will go back to “reciprocal” levels if countries do not make trade deals with the US during the 90-day pause.
“President Trump has put them on notice that if you do not negotiate in good faith, you will ratchet back up to your April 2 level,” Bessent told CNN, highlighting the 18 key partners with whom the US is prioritizing trade deals.
Trump said last Friday that the US will set tariff rates for its trading partners within the next few weeks.
Here are the latest updates as the policy reverberates around the world.
LIVE948 updates
EU sends new trade proposal to US in step to secure deal
Bloomberg News reports:
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Nike set to raise prices next week, plans to sell on Amazon again
Nike (NKE) shares rose 2% premarket on Thursday after the company said it will raise prices on some products next week and resume selling on Amazon (AMZN) for the first time in six years.
Reuters reports:
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EU eyes fresh lobster deal as appetiser for Trump
The FT reports:
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Former Export-Import Bank chair: Tariffs will hurt the US ‘in the long run’
On a new episode of the Financial Freestyle podcast, Fred Hochberg, the former chair of the Export-Import Bank, cautioned that the Trump administration’s tariff policies are set up to hurt US consumers.
“I think the tariffs are going to hurt us in the long run,” Hochberg said.
Yahoo Finance’s Sara Belcher breaks down Hochberg’s comments:
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Canada Goose withholds guidance and cites tariff uncertanity
Canada Goose (GOOS) has withheld its guidance for the fiscal year citing broader consumer uncertainty due to tariffs.
The WSJ reports:
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China: Unilateral tariffs and threats of reciprocal measures are fanning the flames.
China said on Wednesday that trade talks with the US were vital in helping to build relations between the two countries but what was really needed was “indispensable” multilateralism to find a way out of global trade turmoil.
Reuters reports:
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Target badly misses on earnings, slashes guidance
Retailers’ reports on how they’re navigating tariffs and whether they’ll raise prices remain in focus after Walmart’s announcement that it may increase pricing drew the president’s ire on social media.
Today, Target is out with earnings and airing concerns about tariff uncertainty.
Yahoo Finance’s Brian Sozzi reports:
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Could Trump push retailers to ‘eat’ tariff price hikes?
President Trump has taken aim at several retailers this week. Yahoo Finance’s Washington Correspondent Ben Werschkul reports on how Trump could make retailers “eat tariffs.”
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US sets the stage for duties on battery materials from China
The US Commerce Department is preparing the way for anti-subsidy duties on imports of key battery components, from China after concluding the parts had been unfairly subsidized.
Bloomberg News reports:
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G-7 countries discuss tariffs on low-value Chinese products
Bloomberg News reports:
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US-China tensions over chips risk hurting trade truce, dialogue
Bloomberg News reports:
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Fed’s Bostic warns of coming price hikes
Another Fed official warned Tuesday that the US economy may soon face a wave of tariff-induced price hikes.
Atlanta Federal Reserve President Raphael Bostic suggested that businesses may be exhausting the strategies they can use to avoid price or employment changes.
Here are his comments, per Reuters:
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The end of tariff ‘foolishness’ would be a relief for CEOs, former Medtronic CEO says
In a conversation with Yahoo Finance’s Brian Sozzi on the Opening Bid podcast, former Medtronic CEO Bill George said that the world’s CEOs welcome signs of progress on US trade deals, as they’re ready to put money to work.
“CEOs are relieved [following the latest US-China trade truce],” George said. “I think CEOs are eager to invest. I think the market is eager to see them invest too. I think the response to the market since the news would be a clear indication of let’s stop this tariff foolishness. And let’s get back to building the country.”
George, who has sat on the boards of Target (TGT), ExxonMobil (XOM), and Goldman Sachs (GS) and is considered a leadership expert, said he’s telling CEOs to be ready to deploy capital once more trade clarity emerges.
“It gets very hard [in these backdrops]. I would say right now, get ready to blast off, so to speak,” George added. “Like there’s a big game coming up. Get ready to launch, but you may want to hold on to your cash and your investment dollars for a while before you make those big moves.”
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Fed’s Musalem warns tariffs could have ‘significant’ impact on economy despite China trade truce
Yahoo Finance’s Jennifer Schonberger reports:
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GM to stop exporting vehicles from US to China
Reuters reports:
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Who will pay for Trump’s tariffs?
The FT reports:
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Global retailers’ tariff strategy risks spreading pain beyond US consumer
Global retailers like sandal brand Birkenstock (BIRK) and jeweller Pandora plan to raise prices in several countries to spread out the impact of US tariffs and avoid steep price increases in the US that could hurt sales.
Reuters reports:
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Home Depot sticks to guidance amid tariffs
Home Depot (HD) is sticking to its outlook despite persistent tariff headwinds. Yahoo Finance’s senior reporter Brooke DiPalma discusses the latest.
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China accuses US of undermining trade talks with warnings against Huawei chips
Bloomberg News reports:
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China isn’t getting rid of its controls over rare earths, despite trade truce with US
The 90-day trade truce between China and the US appears to have done little to ease Beijing’s tight control over its rare earth exports, according to a CNN report.
Last week’s trade agreement in Geneva included China’s pledge to suspend or remove the “non-tariff” countermeasures imposed on the US since April 2.
However, businesses are still unsure if this promise covers China’s export controls on seven rare earth minerals and related products, which were imposed on April 4 in retaliation to US tariffs.
US trade representative Jamieson Greer sought to ease concerns surrounding this potential vulnerability.
“Yep, the Chinese have agreed to remove those countermeasures,” Greer said in an interview with Fox News.“If they don’t do those things, we’re going to be back in a different situation. But I expect they’ll remove them.”
