The US and China have signaled their commitment to continuing talks , with senior officials engaging in a call late on Thursday.
The two sides vowed to keep lines of communication open, relieving growing concerns about the trade truce agreed in Geneva as both sides clashed days after pausing steep tariffs.
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 had cast 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.
The EU has presented 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 some $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.
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.
On Wednesday, Nike ( NKE ) said it will raise prices on some adult gear by up to $10 next week but keep kids' prices flat. It’s also returning to Amazon ( AMZN ) after six years to boost reach and compete with newer rivals.
Last week, Walmart ( WMT ) 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. Treasury Secretary Scott Bessent said recently 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 .
Here are the latest updates as the policy reverberates around the world.
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