U.S. President Donald Trump looks on, on the day he signs executive orders in the Oval Office at the White House in Washington, D.C., U.S., April 23, 2025.
Leah Millis | Reuters
U.S. President Donald Trump called the first shots in his trade crusade, but he also blinked first in his tariff war.
Trump late Tuesday said that the current 145% tariff on Chinese imports is “very high, and it won’t be that high. … No, it won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero.” The president’s softer tone towards China, despite no formal talks, was in stark contrast to his more combative rhetoric earlier in April.
China, on its part, has welcomed the talks, but has not ceded any ground. “China’s attitude towards the tariff war launched by the U.S. is quite clear: We don’t want to fight, but we are not afraid of it. If we fight, we will fight to the end; if we talk, the door is wide open,” Foreign Ministry spokesperson Guo Jiakun said Wednesday.
Markets then rallied following the softening stance, but with the swings in rhetoric from the White House, we might be in for another whiplash if Trump changes his mind.
— Lim Hui Jie
What you need to know today
Bessent says China, U.S. have ‘opportunity for a big deal’
U.S. Treasury Secretary Scott Bessent on Wednesday said “there is an opportunity for a big deal here” on trade issues between the United States and China. “If they want to rebalance, let’s do it together,” Bessent said during an appearance at the Institute of International Finance in Washington, D.C. Bessent’s comments echo Trump’s own words on Wednesday, where the U.S. President said that tariffs on China “won’t be anywhere near” as high as 145%, but won’t be 0%.
Google forcing some remote workers to come back
Tech giant Google is demanding that some remote employees return to the office if they want to keep their jobs and avoid being part of broader cost cuts at the company. Several units within Google have told remote staffers that their roles may be at risk if they don’t start showing up at the closest office for a hybrid work schedule, according to internal documents viewed by CNBC. Some of those employees were previously approved for remote work.
States sue Trump over tariffs
A dozen states sued President Donald Trump and his administration Wednesday, seeking a court order declaring that his new tariffs on foreign imports are illegal. “The president does not have the power to raise taxes on a whim, but that’s exactly what President Trump has been doing with these tariffs,” New York Attorney General Letitia James said in a statement on the lawsuit.
IBM beats on earnings and revenue
Multinational tech giant IBM reported better-than-expected earnings and revenue for the first quarter on Wednesday. Revenue increased 0.6% in the quarter from $14.5 billion a year earlier, according to a statement. However, net income slid to $1.06 billion, from $1.61 billion in the same quarter a year ago. For 2025, IBM reiterated its expectation for $13.5 billion in free cash flow and at least 5% revenue growth at constant currency.
Markets climb after softer tariff talk
Stocks rose Wednesday on hopes that U.S.-China trade tensions could soon ease. All three major indexes posted back-to-back gains. The Dow Jones Industrial Average popped 1.07%, while the S&P 500 climbed 1.67% and the Nasdaq Composite rallied 2.50%. Over in Europe, the regional Stoxx 600 index closed 1.78% higher, with gains strengthening as U.S. markets surged at the open.
[PRO] Optimism on tariffs may not be enough
The stock market notched a second-straight solid session on Wednesday, buoyed by more hints that the Trump administration may soften its approach on tariffs, but it might take something more substantive for this rebound to turn into a true rally.
And finally…
Facebook and Instagram icons are seen displayed on an iPhone.
Jakub Porzycki | Nurphoto | Getty Images
EU hits Apple and Meta with nearly $800 million in fines amid U.S. trade tensions
The European Union on Wednesday fined Apple and Meta hundreds of millions of euros each for breaching the bloc’s digital competition laws.
The European Commission, which is the executive body of the EU, said it was fining Apple 500 million euros ($571 million) and Meta 200 million euros ($228.4 million) for breaches of the Digital Markets Act (DMA).
Officials said that Apple failed to comply with so-called “anti-steering” obligations under the DMA. Under the EU’s tech law, Apple is required to allow developers to freely inform customers of alternative offers outside its App Store.
