Stock Futures Climb as Trump Signals Easing China Tariff Plans
US stock futures are showing positive trends following comments from President Donald Trump regarding China. On Sunday, Trump reassured the public by stating, “Don’t worry about China.” This comes after a significant market downturn on Friday.
Stock Market Reaction
As of 6:32 p.m. ET on Sunday, the stock futures reflected a recovery:
- Dow futures increased by 0.8%.
- S&P 500 futures saw a rise of 1.04%.
- Nasdaq futures climbed 1.34%.
On Friday, the markets experienced their largest drops in months. The S&P 500 and Nasdaq recorded their worst performance since April, while the Dow posted its lowest numbers since May.
Tariff Updates
Turmoil arose last week when Trump threatened an additional 100% tariff on Chinese goods, effective November 1. This would elevate import duties to 130%, nearing the peak rate of 145% seen during previous tariff disputes.
Trump’s Shift in Position
On Sunday, Trump appeared to ease tensions by stating that he has “a great relationship” with China’s President Xi Jinping. Previously, he had labeled China as “becoming very hostile,” especially after Beijing announced heightened export restrictions on vital rare earth minerals used in consumer electronics.
China’s Response
In response, China’s commerce ministry declared that countermeasures could be taken against the United States if Trump follows through with his tariff threats. They affirmed their position with a statement saying, “We do not want a tariff war but we are not afraid of one.”
Market Uncertainty
Investors remain cautious as Trump’s ability to retract his tariff threat before the November deadline is uncertain. His past behaviors have led to hesitancy in the market. On Air Force One, when questioned about the deadline, Trump remarked, “Let’s see what happens.”
Comments from US Trade Representative
On a related note, US Trade Representative Jamieson Greer stated on Fox News that the United States was “not notified” beforehand about China’s new export restrictions. However, a Chinese spokesperson claimed that “relevant countries and regions” had been informed.
