Trump Tariffs Highlight: 'Reneged on deal,' Trump slams China over halting Boeing deliveries

U.S. stocks drifted Tuesday through a rare quiet day for financial markets.

The S&P 500 slipped 0.2%. The Dow Jones Industrial Average fell 155 points, or 0.4%, and the Nasdaq composite edged down by less than 0.1%.

The modest moves offered some respite following the huge swings that have battered Wall Street recently, not just day to day but also hour to hour. The day before, the S&P 500 went from a gain of 1.8% to a slight loss and back to a gain as it struggled to keep up with shifts in President Donald Trump’s trade war, which economists warn could cause a global recession unless it’s scaled back.

Perhaps more importantly, the U.S. bond market also showed more signs of calm after its sudden and sharp moves last week raised worries that investors worldwide may no longer see U.S. government bonds as a no-brainer go-to when times are scary.

The yield on the 10-year Treasury eased to 4.33% from 4.38% late Monday. It had pulled back to there from 4.48% at the end of last week after surging from just 4.01% a week earlier. A drop in yields is what usually happens when investors are scared, and this week’s moves offer a return to form for what historically had been seen as one of the safest investments possible.

Donald Trump believes it is up to China, not the United States, to come to the negotiating table on trade, the White House said Tuesday, after the US president accused Beijing of reneging on a major Boeing deal.
"The ball is in China's court. China needs to make a deal with us. We don't have to make a deal with them," said a statement from Trump read out by Press Secretary Karoline Leavitt at a briefing.

"There's no difference between China and any other country except they are much larger," she added.

Leavitt's comments came after Trump accused China of going back on a major deal with US aviation giant Boeing -- following a Bloomberg news report that Beijing ordered airlines not to take further deliveries of the company's jets.

The report also said that Beijing requested Chinese carriers to pause purchases of aircraft-related equipment and parts from US firms.

"They just reneged on the big Boeing deal, saying that they will 'not take possession' of fully committed to aircraft," said Trump in a Truth Social post, referring to China.

He did not provide further details on the Boeing agreement he was referring to.

President Donald Trump hinted that he might temporarily relieve the auto industry from “permanent” tariffs he previously imposed on the business. The president didn't specify how long the potential pause would be or what it would entail, but the auto sector is awaiting how rules might change on 25% tariffs based on U.S. parts, if duties remain on assembled vehicles.

Experts have said short pauses aren't likely to give carmakers enough of an opportunity to adjust their vast global supply chains, though parts exemptions would certainly bolster the industry amid Trump's trade war whiplash.

Trump told reporters Monday that automakers “need a little bit of time because they’re going to make them here, but they need a little bit of time. So I’m talking about things like that,” referring to relocating production from Canada, Mexico and elsewhere. The news drove global auto stocks up Tuesday.

Matt Blunt, president of the American Automotive Policy Council, which represents domestic auto companies Ford, General Motors and Stellantis, said in a statement: “There is increasing awareness that broad tariffs on parts could undermine our shared goal of building a thriving and growing American auto industry, and that many of these supply chain transitions will take time.”

Trump first announced 25% automotive tariffs late March; the tariffs for completed vehicles took effect on April 3, while the parts tariffs were set to start 30 days later.

“The one-month delay is intended to give the U.S. government time to work out rules to exempt the value of automotive parts that contains U.S.-made materials, which will not be subject to the tariffs,” according to insights from law firm Foley & Lardner, noting a “carveout” for parts certified under regional trade pact, the U.S.-Mexico-Canada Agreement. The Department of Commerce is expected to determine "a system to calculate non-U.S. content” by May 3.

"Our farmers are GREAT, but because of their GREATNESS, they are always put on the Front Line with our adversaries, such as China, whenever there is a Trade negotiation or, in this case, a Trade War. The same thing happened in my First Term. China was brutal to our Farmers, I these Patriots to just hold on, and a great trade deal was made. I rewarded our farmers with a payment of $28 Billion Dollars, all through the China deal. It was a great transaction for the USA, until Crooked Joe Biden came in and didn’t enforce it. China largely reneged on the deal (although they behaved during the Trump Administration), only buying a portion of what they agreed to buy. They had ZERO respect for the Crooked Biden Administration, and who can blame them for that? Interestingly, they just reneged on the big Boeing deal, saying that they will “not take possession” of fully committed to aircraft. The USA will PROTECT OUR FARMERS!!!" he said.

President Donald Trump has hinted at the possibility of temporarily exempting the auto industry from previously imposed tariffs, aiming to give car manufacturers time to realign their supply chains. At the same time, his administration is moving forward with plans for additional tariffs, launching investigations into key imports such as computer chips, semiconductor manufacturing equipment, and pharmaceuticals.

"President Trump sees him as a friend. We both (India and US) have joint interests and are working on a higher level for the nations' interests. There is a lot we can work on, be it against terrorist operations, on cooperation for advanced technologies and increasing business opportunities. Our future is very bright," she said.

Stock markets saw gains on Tuesday, driven in part by a boost to auto stocks following US President Donald Trump's indication of potential flexibility on steep tariffs targeting the sector. This came as a relief after a turbulent previous week marked by fluctuating tariff announcements, though uncertainty lingers over possible new duties on high-end technology and pharmaceuticals.

European markets mirrored the positive trend in Asia, with London rising by 0.8% and Frankfurt up roughly one percent by midday. However, Paris posted more modest gains, held back by a sharp drop of over seven percent in luxury giant LVMH’s shares after it reported a dip in sales.

Indian and US trade delegations are scheduled to begin talks on a bilateral trade agreement this week, ANI reported citing sources. The initial round of discussions will be held virtually, with a follow-up in-person meeting planned for the second half of May, when the Indian trade team is expected to visit the United States.

Beijing's top official for Hong Kong, Xia Baolong, sharply criticized US tariffs on China on Tuesday, labeling them as "hegemonic" and mocking American "hillbillies," amid escalating trade tensions between the world's two largest economies. Speaking on the issue, Xia emphasized that Hong Kong has never imposed import taxes and highlighted that the US has enjoyed a $272 billion trade surplus with the city over the past decade.

As the trade war deepens, US President Donald Trump has raised tariffs on Chinese goods to 145 percent, prompting Beijing to retaliate with a 125% duty on American imports—a move Hong Kong has notably refrained from mirroring.

The United States, he said, "is the greatest culprit in undermining Hong Kong's human rights, freedom, rule of law, prosperity and stability."

"It is not after our 'tariffs' -- it wants to take our 'lives'," he added.

India is aiming to secure a strong bilateral trade agreement with the United States, the trade secretary said, following the signing of the terms of reference for the initial phase of the deal, Reuters reported. The two countries had agreed in February to launch negotiations on this first phase, with plans to conclude it by the end of the year as part of a broader goal to increase bilateral trade to $500 billion by 2030.

An Indian trade official noted that the deal is making “very good progress” and will address both tariff and non-tariff barriers as part of broader trade liberalization efforts.

India and the United States have finalized the terms of reference for the initial phase of a bilateral trade agreement, according to an Indian trade official on Tuesday, Reuters reported

The two countries had agreed in February to begin work on this first phase, aiming to wrap it up by the end of the year, as part of their goal to boost bilateral trade to $500 billion by 2030.

US Vice President JD Vance hailed his country's transatlantic alliances, striking a more positive note, but in an interview urged European states to show greater independence.

"I love Europe ... I love European people," Vance told news and opinion website UnHerd on Monday in rare favourable comments about the European Union and Britain.

"It's not good for Europe to be the permanent security vassal of the United States," Vance said, echoing his previous rebukes of EU states for alleged security and economic dependence on the United States.

"I don't want the Europeans to just do whatever the Americans tell them to do. I don't think it's in their interest, and I don't think it's in our interests, either."

Amid trade tensions with the US, China has reportedly instructed its airlines to halt further Boeing aircraft deliveries and US. parts purchases following retaliatory tariffs. This move puts Boeing in a precarious position within a crucial market, where China is projected to represent 20% of global aircraft demand.

China's President Xi Jinping, during his visit to Vietnam, emphasised that the two countries should work to "fight unilateral bullying".

The Chinese leader's remarks were made against the backdrop of disruptions caused by tariffs imposed by the Donald Trump administration of the US.

Vietnam was the first stop for Xi, who is on a Southeast Asia tour, including Malaysia and Cambodia, which aims to stabilise regional ties and offset the impact of the US tariffs.

In a meeting with Vietnamese General Secretary To Lam, Xi said that both countries "jointly oppose unilateral bullying, and uphold the stability of the global free trade system as well as industrial and supply chains", according to the Xinhua news agency.

The Trump administration has taken its next steps toward imposing more tariffs on key imports, launching investigations into imports of computer chips, chip making equipment and pharmaceuticals.

The Department of Commerce posted notices about the probes late Monday on the Federal Register, seeking public comment within three weeks. It had not formally announced them earlier.

Although President Donald Trump paused most of his biggest tariff hikes last week for 90 days, apart from those for imports from China, he has said he still plans tariffs on pharmaceutical drugs, lumber, copper and computer chips.

The Commerce Department said it is investigating how imports of computer chips, equipment to make them and products that contain them — which include many daily necessities such as cars, refrigerators, smart phones and other items — affect national security. Section 232 of the Trade Expansion Act of 1962 permits the president to order tariffs to for the sake of national security.

Japan’s economic revitalisation minister Ryosei Akazawa will travel to Washington on April 16 for key talks with US officials over tariffs, as Tokyo seeks relief from President Donald Trump’s sweeping trade measures. Despite being a close ally and the largest investor in the US, Japan faces a 25% tariff on automobiles and a 24% "reciprocal" duty on most other imports—both recently suspended for 90 days. Additionally, Japanese steel and aluminum exports remain subject to a 25% and 10% levy, respectively. Akazawa is expected to meet Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. The US is also engaging in parallel trade talks with South Korea and Indonesia, signaling a fast-moving phase in Trump’s aggressive tariff agenda.

Asian stocks were mixed Tuesday as some stability returned to markets after last week's rollercoaster ride, with auto firms boosted by Donald Trump's possible compromise over steep tariffs on the sector.

However, the US president's unorthodox approach to trade diplomacy continues to fuel uncertainty among investors, with speculation over new levies on high-end technology and pharmaceuticals dampening sentiment.

The announcement last week of exemptions for smartphones, laptops, semiconductors and other electronics -- all key Chinese-made products -- provided a little comfort, though Trump's suggestion they would be temporary tempered the optimism.

Traders gave a muted reaction to Treasury Secretary Scott Bessent's remarks Monday that a China-US deal could be done in an apparent olive branch as the two economic powerhouses trade tariff threats.

His comments came as Trump has hammered China with duties of up to 145 percent, while Beijing has imposed retaliatory measures of 125 percent.

"There's a big deal to be done at some point" Bessent said when asked by Bloomberg TV about the possibility that the world's largest economies would decouple. "There doesn't have to be" decoupling, he said, "but there could be."

The United States has intensified its trade war strategy by launching new "national security" investigations into pharmaceutical and semiconductor imports, raising the possibility of fresh tariffs. While Treasury Secretary Scott Bessent mentioned progress in trade talks with countries like Vietnam, Japan, and South Korea, he provided few specifics, and uncertainty remains.

President Trump signaled potential flexibility, especially for industries like auto manufacturing, but emphasized that key tech imports, including semiconductors, could still face tariffs soon. Temporary exemptions were announced for certain high-tech goods, offering limited relief to companies like Apple and Nvidia. However, Trump warned these exemptions might be short-lived.

Global markets rose on the news of temporary easing, but concerns persist, particularly in countries like South Korea, which responded by pledging $4.9 billion in semiconductor investment due to uncertainty. China's President Xi Jinping criticized protectionism and warned that a trade war benefits no one.

The US. administration claims progress on multiple bilateral trade deals before a 90-day tariff grace period ends, but concrete agreements are yet to materialize. The EU remains open to a fair deal, proposing a "zero-for-zero" tariff plan, though significant negotiation efforts are expected.

US tariff exemptions for electronics prompted market rallies Monday from Asia to Wall Street, but uncertainty dominated in a global trade war that Chinese leader Xi Jinping warned can have "no winner."

Wall Street was buoyant, with the Dow Jones index rising one percent shortly after the opening and the S&P 500 up 1.45 percent. This followed boosts on Asian and European markets.

Investors are relieved at the apparent easing of pressure in President Donald Trump's wide-ranging but often chaotic attempt to reorder the world economy by using tariffs to force manufacturers to relocate to the United States.

Tit-for-tat exchanges have seen US levies imposed on China this year rise to 145 percent, and Beijing setting a retaliatory 125 percent barrier on US imports.

The electronics tariff reprieve, US officials said late Friday, means exemptions from the latest duties against China for a range of high-end tech goods such as smartphones, semiconductors and computers.

But Trump suggested Sunday that the exemption would be only temporary and that he still planned to put barriers up on imported semiconductors and much else.

"NOBODY is getting 'off the hook' for the unfair Trade Balances," Trump blasted on his Truth Social platform. "We are taking a look at Semiconductors and THE WHOLE ELECTRONICS SUPPLY CHAIN."

President Donald Trump on Monday suggested that he might temporarily exempt the auto industry from tariffs he previously imposed on the sector, to give carmakers time to adjust their supply chains.

“I’m looking at something to help some of the car companies with it,” Trump told reporters gathered in the Oval Office. The Republican president said automakers needed time to relocate production from Canada, Mexico and other places, "And they need a little bit of time because they’re going to make them here, but they need a little bit of time. So I’m talking about things like that.”

The statement hinted at yet another round of reversals on tariffs as Trump's onslaught of import taxes has panicked financial markets and raised deep concerns from Wall Street economists about a possible recession.

When Trump announced the 25% auto tariffs on March 27, he described them as “permanent.” His hard lines on trade have become increasingly blurred as he has sought to limit the possible economic and political blowback from his policies.

Last week, after a bond market sell-off pushed up interest rates on U.S. debt, Trump announced that for 90 days his broader tariffs against dozens of countries would instead be set at a baseline 10% to give time for negotiations.

At the same time, Trump increased the import taxes on China to 145%, only to temporarily exempt electronics from some of those tariffs by having those goods charged at a 20% rate.

“I don’t change my mind, but I’m flexible,” Trump said Monday.

As the US-China tariff war intensifies, the Indian toy industry leaders are calling the situation a "golden opportunity" to position India as a major export hub for toys, especially to the United States, a trade body official said on Monday. The US recently imposed a steep 145 per cent tariff on toy imports from China - a move that could reshape the global toy trade.

China, which previously accounted for nearly 77 per cent of US toy imports, is expected to see a significant drop in exports due to the high tariff, opening up space for alternate suppliers, the official said.

Akshay Binjrajka, President of Bharat Toy Association, told PTI that India is well-positioned to fill the emerging vacuum.

PTI had on April 13 erroneously named Akshay Binjrajka as the President of the Toy Association of India.

However, the Toy Association of India has clarified that Ajay Aggarwal is the president of the trade body.

Brinjrajka acknowledged his miscommunication to PTI as Toy Association president and called it a "typo error" on his part.

Aggarwal when contacted said that he is travelling and will update about the industry once he returns.

Democrats are quick to say that President Donald Trump’s tariffs are horrible, awful, terrible. But Democrats are also stressing that they are not inherently anti-tariff.
What Trump's political opponents say they really dislike is the “chaos” he has unleashed.

“Tariffs are an important tool in our economic toolbox,” said Sen. Elizabeth Warren, D-Mass. “Trump is creating chaos, and that chaos undercuts our economy and our families, both in the short term and the long term. ... He’s just created a worldwide hurricane, and that’s not good for anyone.”

Sen. Tim Kaine, D-Va., said Democrats have a consensus around “a unified concept, which is targeted tariffs can work, across the board tariffs are bad.”

“The right targeting is in the eye of the beholder, but nobody on our side thinks zero tariffs ever,” Kaine said.

The Democrats' message is meant to convey that they are reasonable, focused on capable governance and attuned to financial market distress. It's a pitch toward swing voters who would like to see more manufacturing yet are uncomfortable with the consequences of Trump's approach to tariffs. The risk is that it also is a nuanced argument at a time when pithy critiques travel faster and spread wider on social media than do measured policy analyses.

To the Trump White House, that message is nothing but hypocrisy.

The EU's retaliatory tariffs on US goods worth 21 billion euros will be on hold until July 14, Brussels said on Monday, to give time for negotiations with Washington.
The European Union was hit with a 20 percent rate as part of Trump's sweeping tariffs on April 2, before he suspended the measures for 90 days a week later.

To give breathing room for negotiations, the EU in turn last week halted its countermeasures on previously enacted US tariffs on steel and aluminium, and on the auto sector -- which remain in place.

The EU's pause will "take legal effect" on Tuesday, the European Commission said.

EU trade chief Maros Sefcovic was in Washington Monday for talks with US counterparts in the hope of an agreement before the 90 days are over.

The EU is still preparing its response to the 20-percent levies, it said, although Brussels has made it clear it would prefer to avoid retaliation.

"The EU considers US tariffs unjustified and damaging, risking economic harm to both sides, as well as the global economy," the commission said.

US tariffs exemptions for electronics prompted market rallies Monday from Asia to Wall Street but failed to settle nerves over a global trade war that Chinese leader Xi Jinping warned would have "no winner."

Wall Street was buoyant, with the Dow Jones index rising one percent shortly after the opening and the S&P 500 up 1.45 percent. This followed boosts on Asian and European markets.

Investors are relieved at the apparent easing of pressure in President Donald Trump's wide-ranging but often chaotic attempt to reorder the world economy by using tariffs to force manufacturers to relocate to the United States.

Tit-for-tat exchanges have seen US levies imposed on China this year rise to 145 percent, and Beijing setting a retaliatory 125 percent barrier on US imports.

But even the electronics tariff reprieve -- that US officials late Friday said would mean exemptions from the latest 125 percent duties against China for a range of high-end tech goods such as smartphones, semiconductors and computers -- brought new uncertainty.

Trump suggested Sunday that the exemption would be only temporary and said he still planned to put barriers up on imported semiconductors and much else.

"NOBODY is getting 'off the hook' for the unfair Trade Balances," Trump blasted on his Truth Social platform. "We are taking a look at Semiconductors and THE WHOLE ELECTRONICS SUPPLY CHAIN."

The Chinese commerce ministry said Friday's move was only "a small step" and all tariffs should be cancelled.

China's Xi warned Monday -- as he kicked off a Southeast Asia tour with a visit to Vietnam -- that protectionism "will lead nowhere" and a trade war would "produce no winner."

During a state visit to Vietnam on Monday, Chinese President Xi Jinping emphasized the need for China and Vietnam to "jointly oppose unilateral bullying," according to Chinese state media. Speaking with Vietnam's top leader, To Lam, Xi called for both countries to reinforce their strategic cooperation, resist unilateral actions, and work together to maintain the stability of global free trade, as well as industrial and supply chains, Xinhua reported.

Stocks are rallying worldwide after President Donald Trump relaxed some of his tariffs, for now at least. The S&P 500 was 1.7% higher in early trading on Monday. It’s coming off a chaotic week where it careened through historic swings as markets struggled to catch up with Trump’s moves on tariffs. The Dow Jones Industrial Average was up 434 points, or 1.1%, and the Nasdaq composite was up 2.5%. Apple, Nvidia and other big technology companies led the way on Wall Street after Trump said he was exempting smartphones, computers and some other electronics from some of his stiff tariffs.

Stocks are rallying worldwide Monday after President Donald Trump relaxed some of his tariffs, for now at least.

The S&P 500 was 1.5% higher in early trading. It’s coming off a chaotic week where it careened through historic swings as financial markets struggled to catch up with Trump’s moves on tariffs, which investors fear could lead to a recession if not reduced.

The Dow Jones Industrial Average was up 441 points, or 1.1%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 2% higher.

Apple, Nvidia and other big technology companies led the way on Wall Street after Trump said he was exempting smartphones, computers and some other electronics from some of his stiff tariffs, which could ultimately more than double prices for U.S. customers of many goods coming from China. Such an exemption should help U.S. importers, which would not have to choose between passing on the higher costs to their customers or taking a hit to their own profits.

Apple climbed 5.3%, Nvidia rose 2.3% Dell Technologies jumped 5.9%.

Stock markets in other countries likewise bounced following the cooldown in Trump’s trade war with China, the world’s second-largest economy. Indexes climbed 2.4% in France, 2.7% in Germany, 1.2% in Japan and 1% in South Korea.

But the relief may prove fleeting. Trump’s tariff rollout broadly has been full of fits and starts, and officials in his administration said this most recent exemption on electronics is only temporary.

Stock markets rose, gold hit another record high and the dollar regained some ground Monday as investors grappled with the latest twists and turns in US President Donald Trump's trade war.

Wall Street opened higher, following sharp rises in Asia and Europe, after Trump appeared to dial down his trade war as smartphones, laptops, semiconductors and other electronics -- all key Chinese-made products -- were given a reprieve from US tariffs on Friday.

"Washington's partial retreat from its hard-line tariff regime -- specifically the temporary exemption of a raft of tech goods from punitive import levies -- has momentarily eased fears of an all-out trade war," said Fawad Razaqzada, analyst at City Index and Forex.com.

But suggestions by Trump over the weekend that the exemptions would be temporary added to market uncertainty, following volatility on trading floors last week over the US leader's erratic trade agenda.

Trump administration officials have been out in force across the television networks, defending President Donald Trump’s economic policies after another week of reeling markets that saw the Republican administration reverse course on some of its steepest tariffs.

Meanwhile, Trump’s doctor says the oldest man elected president is “fully fit” to serve as commander in chief as the White House released results Sunday of Trump’s recent physical exam.

European auto major Skoda Auto Volkswagen India on Monday said while it does not support the new reciprocal tariff imposed by the Trump Administration, which have now been paused for 90 days on non-retaliating countries, the move may open up opportunities for the industries in the long term. Earlier, the group, which is battling a Rs 11,000-crore tax show cause notice for alleged customs duty fraud related to the import of cars as completely knocked down units, rolled out the all-new Volkswagen Tiguan R Line at an introductory price of Rs 49 lakh.

"Of course, we do not support the (reciprocal) tariffs but at the same time there are a lot of discussions about opening up the economy even in India through bilateral trade or free trade agreements," Piyush Arora, Managing Director at Skoda Auto Volkswagen India told PTI here at the launch event.

Emphasizing that the group always believes in "free trade" and transfer of technology between countries for customers and their benefits, Arora said there is a lot of uncertainty right now hovering around the recent announcements on the tariff front which the US administration has imposed.

He, however, added that these developments (tariff discussion) might expedite the free trade agreements being discussed between India and the EU for a long time.

"I do believe that there are opportunities for India. We have always been a proponent of having lower tariffs between Europe whether it is EU trade or bilateral FTA which has been discussed for a very long time but at the same time might give an opportunity.

"There might be short-term hiccups because of increased tariff for our component industry from India which is exporting a good amount of parts to the US and the initial tariffs can hinder that but in the long run maybe it will open up opportunities," Arora said.

Stock markets rose firmly on Monday after fears over US President Donald Trump's trade war were tempered by tariff exemptions for smartphones, laptops, semiconductors and other electronic products.

But suggestions by Trump that the exemptions would be temporary added to market uncertainty as the dollar extended losses, helping gold to a fresh record high.

European indices jumped around two percent in midday deals following last week's rollercoaster for equities as the United States and China exchanged tit-for-tat levies.

That tracked gains in Asia, with tech firms helping push Hong Kong up more than two percent, while Tokyo and Shanghai also closed higher.

The United States on Friday appeared to slightly dial down the pressure on its trade war with Beijing, sparing electronic products -- for which China is a major source -- from painful "reciprocal" levies.

US levies imposed on China have risen to 145 percent, and Beijing set a retaliatory 125 percent band on US imports.

Trump on Sunday stressed that the exemptions had been misconstrued and that no country would get "off the hook" in his trade war -- especially China.

He said they would only be temporary as his team pursued fresh tariffs against many items on the list, including on semiconductors "over the next week".

Stock markets on Monday welcomed US tariff exemptions for electronics, but President Donald Trump signalled the reprieve would be temporary and warned no country would get "off the hook" in his trade war -- especially China.

The world's two largest economies have been locked in a fast-moving game of brinkmanship since Trump launched a global tariff assault that particularly targeted Chinese imports.

Tit-for-tat exchanges have seen US levies imposed on China rise to 145 percent, and Beijing setting a retaliatory 125 percent band on US imports.

The US side had appeared to dial down the pressure slightly on Friday, listing tariff exemptions for smartphones, laptops, semiconductors and other electronic products for which China is a major source.

But Trump and some of his top aides said Sunday that the exemptions had been misconstrued and would only be temporary as his team pursued fresh tariffs against many items on the list.

"NOBODY is getting 'off the hook'... especially not China which, by far, treats us the worst!" he posted on his Truth Social platform.

China's leader Xi Jinping said no one wins in a trade war as he kicked off a diplomatic tour of Southeast Asia on Monday, reiterating China's commitment to global trade in contrast with U.S. President Donald Trump's latest tariffs moves.

Although Trump has paused some tariffs, he has kept in place 145% duties on China, the world's second-largest economy.

“There are no winners in a trade war, or a tariff war,” Xi wrote in an editorial jointly published in Vietnamese and Chinese official media. “Our two countries should resolutely safeguard the multilateral trading system, stable global industrial and supply chains, and open and cooperative international environment.”

Xi's visit lets China show Southeast Asia it is a “responsible superpower in the way that contrasts with the way the U.S. under President Donald Trump presents to the whole world," said Nguyen Khac Giang, a visiting fellow at Singapore’s ISEAS–Yusof Ishak Institute.

Asian markets rallied on Monday as tensions over trade eased slightly after US President Donald Trump said electronics such as computer chips, smart phones and laptops would not be subject to the same high import duties as some other products. US futures also gained after a rally Friday on Wall Street. However, a weaker US dollar and lower oil prices hinted at persisting worries over the direction of Trump's trade war.

In early European trading, Germany's DAX gained 1.9 per cent to 20,752.94, while the CAC 40 in Paris was up 1.8 per cent at 7,235.36. Britain's FTSE 100 added 1.6 per cent to 8,091.14.

The future for the S and P 500 gained 1.1 per cent while that for the Dow Jones Industrial Average was up 0.6 per cent.

Asian shares logged sturdy gains. Japan's Nikkei 225 rose 1.2 per cent to 33,982.36 and South Korea's Kospi gained 1 per cent to 2,455.89.

Shares in technology companies surged, with Tokyo Electron up 1.4 per cent and Advantest, a testing equipment maker, up 4.9 per cent. South Korea's biggest company, Samsung Electronics, gained 1.8 per cent.

Hong Kong's Hang Seng jumped 2.3 per cent to 21,397.20, while the Shanghai Composite index picked up 0.8 per cent to 3,262.81 after the government reported that China's exports surged 12.4 per cent in March from a year earlier.

US President Donald Trump said he was temporarily exempting smartphones, computers and other electronics from his tariffs after China announced Friday that it was boosting its tariffs on US products to 125 per cent in the latest tit-for-tat increase following Trump's escalations on imports from China.

US President Donald Trump said late Sunday that he will announce the tariff rate on imported semiconductors in the coming week. He also said there will be flexibility for some companies in the sector.

"The tariffs will be in place in the not distant future," Trump said, referring to the new semiconductor tariffs that would follow similar actions on steel, aluminum, and automobiles. When asked about the exact rate, he said, "I'm going to be announcing it over the next week."

As Democrats respond to the policies of the second Trump administration, they are finding it difficult to present a clear position on tariffs. Many are navigating carefully due to the fast-changing nature of President Donald Trump's trade decisions.

Most Democrats have called Trump’s shifting trade actions “chaotic” and “reckless,” but there is no strong agreement within the party on whether to support tariffs as a general policy.

This lack of unity was evident on Sunday, when Democratic lawmakers were questioned on news programs about whether opposing Trump’s tariffs while supporting tariffs in principle was a consistent position.

Senator Cory Booker, D-N.J., when asked by NBC’s Kristen Welker, criticized Trump’s trade strategy but did not comment directly on whether his party’s broader response was appropriate. Welker noted that former President Joe Biden had kept and even extended some of Trump’s earlier tariffs, which had received support from some progressive Democrats.

"I just want to, for myself, tell you a full-throated, unequivocal condemnation of the Trump tariffs," Booker said, arguing that the trade measures had disrupted the economy and hurt Americans’ savings. "It is all just wrong. It should be condemned."

US President Donald Trump said on Sunday that no country would be "getting off the hook" when it comes to tariffs, while his administration indicated that any exemptions—especially those seen as benefiting China—would not last long.

The United States and China, the world's two largest economies, have been engaged in a rapid and intense exchange of trade measures since Trump began imposing global tariffs, with a strong focus on Chinese goods.

As a result of these back-and-forth actions, US tariffs on Chinese imports have climbed to 145 per cent, while China has responded with its own tariffs of up to 125 per cent on US products.

"At present, China's exports are facing a complex and severe external situation, but 'the sky will not fall'," the spokesperson said, news agency Reuters. He also stated that China is "actively building a diversified market, deepening cooperation with all parties in the supply chain," and added, "Importantly, China's domestic demand market is broad."

On Sunday, US President Donald Trump stated that he plans to unveil new tariffs on semiconductors within the coming week, as part of his ongoing effort to tackle trade imbalances through targeted duties. "The tariffs will be implemented in the near future," he said, referring to the proposed semiconductor-specific measures, which would follow earlier tariffs on steel, aluminum, and automobiles. When asked about the specific rate for semiconductors, Trump responded, "I'll be announcing it over the next week."

Donald Trump on Sunday doubled down on his hardline trade stance, declaring that no country — especially China — would be spared from his sweeping tariff agenda.

Trump, in a post on social media rejected claims that his administration had granted tariff exemptions to certain tech products, saying, “NOBODY is getting ‘off the hook’ for the unfair Trade Balances… especially not China which, by far, treats us the worst!”

“There was no Tariff ‘exception’ announced on Friday. These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff ‘bucket.’ The Fake News knows this, but refuses to report it,” Trump wrote, referencing media reports suggesting exemptions for electronics like smartphones and semiconductors.

Indian exports of smartphones, laptops and other electronics to the US are expected to become 20% cheaper as compared to those from China, after the Trump administration removed tariffs on a range of consumer electronics, industry body ICEA said on Sunday.

The move, announced over the weekend, is seen as a major boost for India’s rapidly growing electronics manufacturing sector. The US decided to exempt smartphones, tablets, laptops, flat-panel monitors and certain semiconductor components from the reciprocal tariffs imposed earlier on countries like China, India, and Vietnam.

The exemption implies that India and Vietnam now enjoy a major tariff advantage over China in exporting these products to the US.“China still has 20 per cent of iPhones, laptops, tablets, and watches. Only reciprocal tariff has been removed for China. India has zero tariff on iPhones and all smartphones, laptops and tablets exported to the US. Vietnam also has zero tariff on all Samsung and other smartphones, laptops and tablets exported to the US. So India and Vietnam are similarly placed on tariffs on these products and both enjoy a 20 per cent tariff advantage over China,” said Pankaj Mohindroo, chairman of the India cellular and electronics association (ICEA).

US President Donald Trump and Chinese President Xi Jinping currently have no plans to hold talks amid an intensifying trade war, confirmed trade representative Jamieson Greer during an appearance on CBS News’ “Face the Nation” on Sunday.

Greer said the issue now rests "at the leaders' level" and that any future engagement would occur only “at some point,” as President Trump has suggested.

Tariff exemptions on electronics such as smartphones and laptops are only temporary, US Commerce Secretary Howard Lutnick said Sunday. He added that the Trump administration is working on a new tariff strategy focused on the semiconductor industry.

White House officials, including President Donald Trump himself, spent Sunday downplaying the significance of exemptions that lessen but won't eliminate the effect of US tariffs on imports of popular consumer devices and their key components.

“They’re exempt from the reciprocal tariffs but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” Lutnick told ABC's “This Week” on Sunday.