$#TariffsPause This development occurred when China adopted a tone that publicly challenged and Trump created confusion by claiming that he had spoken with the President of China, which was denied by Beijing.

"China and the US are NOT conducting consultations or negotiations regarding #tariffs. The US should stop creating confusion," wrote the Chinese Embassy in Washington on social media. Trump added to the confusion on Friday when he said he would lift tariffs on China unless Beijing gave the US something "substantial" in return. Even as the bluster continued, signs of retreat raised hopes on Wall Street for broader tariff de-escalation after intense exchanges between the two largest economies in the world. China has recently raised tariffs on US goods to 125% from 84%, while US tariffs on imports from China have soared, on most imports, to 145%. Meanwhile, Treasury Secretary Scott Bessent suggested that a US-South Korea trade deal could happen next week, praising South Korea's approach. In an interview with Time magazine on Friday, Trump said he expected many trade deals to materialize in the next three to four weeks.

Investors are also focused on other key tariffs, as well as delays and exemptions. Trump was reportedly planning exemptions on some auto tariffs after suspending tariffs on some consumer technology, although he insisted that these tariffs would eventually materialize. The White House also ordered an investigation into truck imports, paving the way for tariffs in that sector. The basic 10% tariff that took effect on April 5 remains in place for all affected imports to the US.