Stock futures rise after Trump hints at backing off from new China tariffs
By Auzinea Bacon, CNN
(CNN) — US stock futures rose Sunday after President Donald Trump said, “Don’t worry about China,” following a sell-off on Friday.
Dow futures were up 0.8%, S&P 500 futures rose 1.04% and Nasdaq futures climbed 1.34%, as of 6:32 p.m. ET.
Stocks closed sharply lower on Friday after Trump threatened an additional 100% tariff on Chinese goods, slated to take effect on November 1. That would bring duties on imports from China to 130% — not far from the 145% rate imposed at the height of the tariff war. The S&P 500 and Nasdaq posted their worst day since April. The Dow posted its worst day since May.
But on Sunday afternoon, Trump appeared to hint that he may not follow through with his tariff threat, posting on Truth Social that “it will all be fine!”
Trump told reporters on Air Force 1 that China’s President Xi Jinping is “a great leader” and they have “a great relationship.”
The comments were a shift from last week, when he said China was “becoming very hostile” after Beijing on Thursday ramped up export restrictions on critical rare earth minerals, which are used to produce consumer electronic products.
Beijing on Sunday threatened to impose countermeasures against the United States if Trump doesn’t back down from his tariff threat.
“China’s stance is consistent,” China’s commerce ministry said Sunday in a statement posted online. “We do not want a tariff war but we are not afraid of one.”
Another round of tit-for-tat tariffs would undo the progress made during months of meetings between Chinese and US officials. It’s unclear if Trump could back down from his tariff threat ahead of the November 1 deadline, stirring uncertainty in the market similar to other tariff announcements where Trump has “chickened out.”
Speaking to reporters Sunday on Air Force One, Trump said, “Let’s see what happens,” when asked about the November 1 deadline.
During an appearance on Fox News’ “The Sunday Briefing,” US Trade Representative Jamieson Greer said that the US was “not notified” in advance of China’s increased export restrictions, although a spokesperson for China’s commerce ministry said that “relevant countries and regions” were notified.
The-CNN-Wire
™ & © 2025 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
