Wall St falls as Trump says China violated tariff terms
Wall Street's main indexes fell on Friday as U.S. President Donald Trump accused China of violating a tariff agreement, ramping up tensions in a trade war that has roiled global markets and businesses.
Trump's post on his Truth Social platform did not specify how China had violated the agreement made in Geneva, Switzerland, and what action he would take against Beijing. 'So much for being Mr. NICE GUY!,' he said.
In their Geneva talks, both sides had agreed the U.S. would drop levies on Chinese imports from 145% to 30% during a 90-day negotiation period and China would cut duties from 125% to 10%.
'We went from a place where it felt as though investors had a pretty good handle on the direction of trade and tariffs and now that picture has become very confusing,' said Art Hogan, chief market strategist at B Riley Wealth.
Helping stem losses, data showed U.S. consumer spending increased marginally in April, with the year-on-year reading increasing to 2.1% after advancing 2.3% in March. The Fed tracks the PCE price measures for its 2% inflation target.
Traders continued to bet that the U.S. central bank will cut its target for short-term borrowing costs in September.
At 09:59 a.m. ET, the Dow Jones Industrial Average fell 49.27 points, or 0.12%, to 42,166.46, the S&P 500 lost 27.12 points, or 0.46%, to 5,885.05 and the Nasdaq Composite lost 155.75 points, or 0.81%, to 19,020.13.
Most megacap and growth stocks fell, with Nvidia down 2.4%.
Nine of the 11 major S&P 500 sub-sectors fell, with energy and information technology declining the most.
Wall St edges lower as markets await Nvidia earnings
Despite the losses, the Nasdaq is on pace for its best month since November 2023, while the benchmark S&P 500 is on track for its biggest monthly gain since November 2024. The Dow is also set to notch a near 3.5% advance for May.
It has been a volatile month for stocks as Trump's on-and-off trade moves kept investors on edge, though his softening stance on tariffs had helped the S&P 500 rebound from its April lows. The benchmark is now about 4% lower than its all-time high hit in February.
Hopes of more deals between the U.S. and major trading partners, along with upbeat earnings and tame inflation data, had also driven the gains in equities.
U.S. equities had initially rallied in the previous session, after the Court of International Trade ruled late on Wednesday to effectively block most levies imposed since January, without addressing some industry-specific tariffs.
However, a federal appeals court on Thursday temporarily reinstated most of the tariffs and ordered the plaintiffs in the cases to respond by June 5 and the administration by June 9.
Among other big movers on the day, Ulta Beauty jumped 15% after the cosmetics retailer raised its annual profit forecast after beating quarterly results.
Shares of drugmaker Regeneron dropped more than 18% after its experimental drug for patients with a type of lung condition commonly called 'smoker's lung' failed a late-stage trial, although it succeeded in another.
Declining issues outnumbered advancers by a 2.33-to-1 ratio on the NYSE and by a 2.66-to-1 ratio on the Nasdaq.
The S&P 500 posted 6 new 52-week highs and 2 new lows while the Nasdaq Composite recorded 24 new highs and 40 new lows.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
9 minutes ago
- Express Tribune
China's role in shaping future of global governance
Since its establishment 80 years ago, the United Nations (UN) had been pivotal in preserving the postwar international order, managing crises, delivering humanitarian aid, and promoting sustainable development. As a founding member, China had significantly contributed to these efforts. According to political analyst Yi Fan, China had honored its commitment to the UN and played an integral part in the evolution of the global order. However, as noted by the commentator, certain UN member states had found themselves casting blame on the very world order they helped construct. Despite this, China had remained steadfast in adhering to the principles of the UN Charter, striving to ensure that the global governance system was just, equitable, and responsive to the needs of all nations, particularly those from the Global South. A firm vote for a multipolar world In Yi Fan's view, a fundamental principle of the UN Charter was the equality of all nations. In a multipolar world, each country, regardless of its power or influence, should have an equal voice. Chilean President Gabriel Boric emphasized this during the China-CELAC Forum, acknowledging the respect that China showed to other countries. This respect, as the political analyst pointed out, was not just symbolic but had been translated into tangible actions. He further observed that developing nations had often been excluded from key decision-making processes, their voices drowned out. Chinese President Xi Jinping had echoed this sentiment at the 70th session of the UN General Assembly, emphasizing China's ongoing support for the interests of developing countries. Over the past decade, the commentator noted, China had continually acted on its pledge to amplify the representation and voices of the Global South. China's role in initiatives like the BRICS forum exemplified its dedication to fostering inclusive dialogue. The political analyst also critiqued those who opposed multipolarity, asserting that it was not the root cause of global instability. According to Yi Fan, multipolarity was a solution to an imbalanced world order, not a cause of unrest. The turbulence seen at the time was more a result of a "We First" mentality that disregarded the needs of others. Yi Fan believed that the true cause of global challenges lay not in multipolarity but in the failure to effectively implement the UN Charter's principles. For the UN to fulfill its mission, the commentator argued, all nations had to adhere to international law, uphold the norms of international relations, and embrace the goals outlined in the UN Charter. Only by collectively following these principles could the UN guide the world toward peace, development, and justice for all. Economic globalization: a vast ocean of interdependence The global economy had become increasingly interconnected, resembling an ocean where a ripple from one side could affect distant shores. As Yi Fan explained, China had been a driving force behind this interconnected world economy. Since integrating into the global economic system, China had championed mutually beneficial economic globalization. At the time, China contributed more than 30 percent of global growth and 20 percent of global trade. The political analyst argued that China had viewed interdependence as a partnership, not rivalry. Unlike the United States, which had often used tariffs as a tool against its trading partners, China had consistently supported free trade, cooperating with countries around the world. China's decision to extend zero-tariff treatment to 43 least-developed countries further demonstrated its commitment to supporting the most vulnerable nations. Furthermore, Yi Fan observed that China had advocated for reform within the World Trade Organization (WTO), seeking to build a system based on openness, inclusivity, and non-discrimination. Through initiatives like the Belt and Road Initiative, China had promoted infrastructure development and improved the livelihoods of more than 4.4 billion people in 65 countries. Additionally, the political analyst highlighted China's leadership in spearheading international cooperation in cutting-edge fields like artificial intelligence, where a UN General Assembly resolution proposed by China aimed to foster innovation and collaborative progress. Yi Fan cautioned against isolationist tendencies, suggesting that the solution to global economic challenges lay in cooperation, not retreat. The future of the global economy, he argued, was built on shared efforts, not on going it alone. Looking toward the future: hope over hazard As the UN marked its 80th anniversary, Yi Fan underscored that the decisions made at that time would have a lasting impact on the future of global governance. Guided by its commitment to equality and cooperation, China had remained determined to ensure the international system benefited all nations. The commentator concluded by reiterating that China's vision for a multipolar world—one built on mutual respect and shared prosperity—offered hope for a more balanced and just global order. In his reflection, Yi Fan emphasized that global governance should not have been about dominating others, but about growing together toward a future where all nations could thrive. He believed that the UN Charter's principles, when fully embraced, would lead humanity toward a future of cooperation, peace, and sustainable development.
Business Recorder
an hour ago
- Business Recorder
China exports more solar panels to Pakistan than to many G20 nations in 5 years: report
China exported more solar panels to Pakistan than to many G20 nations, with over 16 gigawatts (GW) imported in 2024 alone, a research report stated on Wednesday. The report titled 'Leader of One or Leader of None - China's Choice for Clean over Coal in Pakistan' published by think tank Renewables First said more than 39GW of solar panels, nearly all from China, entered Pakistan in just five years. These solar panels are 'enough to exceed three-quarters of Pakistan's installed national generation capacity', the report said. The report unpacked this transformation, highlighting China's role in the Global South. 'The exit of the United States from the Paris Agreements threw international climate action into a state of frenzy, with the world left speculating who, if anyone, might step in to lead the efforts against climate change,' it said. From crisis to clean energy: Pakistan emerges as top solar market in 2024 China is now a global powerhouse in clean energy manufacturing. It is supplying tools in the form of renewable energy technologies that much of the world is using to fight climate change, according to the report. There has been an energy shift in Pakistan in the form of what the think tank called a 'Solar Rush', which is driven 'not by government declarations or boardroom decisions, but by rooftops, farms, and factory sheds'. The report demystified the 'Solar Rush', dissecting how one of the world's fastest-growing, people-led solar markets materialised not through grand strategy, but through open competition, favorable trade policy, and a flood of low-priced technology. Yet as solar thrived, coal investments began turning into high-risk assets, with the country still hosting billions of dollars in Chinese-financed coal-fired power plants, the report said. As solar slashed grid demand and made self-generation more viable, these legacy plants, once seen as anchors of energy security, have began to sink. 'Utilisation of these power plants fell to as low as 4% in some projects by 2024. Capacity payments ballooned. And electricity from the grid grew more expensive for those still reliant on it,' the report. 'China's solar panels are outcompeting China's power plants,' said Muhammad Basit Ghauri, lead author of the report. 'What we are seeing is an unintentional but profound strategic contradiction. And Pakistan is ground zero for this global experiment in energy disruption.' Pakistan's solar revolution leaves its middle class behind With distributed solar now displacing centralised generation, Pakistan does not just need panels. It needs storage systems, grid upgrades, local manufacturing, financing tools, and a pathway to move away from stranded coal assets, the report said. 'Pakistan may be the first to experience this clash between legacy coal and democratised solar at this scale, but it will not be the last. If China gets this right, it will not just lead to Pakistan's energy transition. It will prove itself as the architect of a new Global South energy paradigm, one that is fast, fair, and truly transformative,' the report envisaged.
Business Recorder
2 hours ago
- Business Recorder
India's Vedanta says Trump's tariffs damaging, seeks import curbs
Indian metals-to-oil conglomerate Vedanta said on Wednesday that U.S. President Donald Trump's doubling of aluminium tariffs to 50% poses a threat to the Indian industry already struggling with surging imports. Trump's latest round of tariffs on aluminium and steel, which took effect on Wednesday, have unsettled the global markets. 'The 50% tariff announced by Trump is damaging to the Indian aluminium industry, which is already under pressure from surging imports that threaten to create surplus and risk to domestic market access,' a Vedanta spokesperson told Reuters. The miner, which is the country's largest aluminium producer, urged the Indian government to implement tariffs to protect against imports. '..There should be duty guard-rails for the aluminium industry as well which has so far invested more than $20 billion to set up the current domestic primary aluminium capacity,' the spokesperson said. India's cumulative aluminum exports fell 19% to 2.24 million metric tons in the fiscal year ended March 2025, according to government data. Separately, the country's federal steel minister said earlier this week that the impact of Trump's steel tariffs would be minor on the local industry, as India, the world's second-largest crude steel producer, does not export to the U.S. in significant quantities. In April, India imposed a 12% temporary tariff on some steel imports, locally known as a safeguard duty, to curb a surge in cheap shipments primarily from China.
