Boomerang tariffs ahead for China?

The much-anticipated U.S.-China trade talks in Sweden turned out to be a letdown after they concluded Tuesday with no trade truce extension.

Why? Any decision would have to be signed off by President Donald Trump, Treasury Secretary Scott Bessent told CNBC.

While Bessent told Trump on a call that the meeting with China was “very good,” U.S. tariffs on Chinese goods will “boomerang” back up to their April levels if an extension is not reached by the Aug. 12 deadline, the Treasury Secretary told reporters Tuesday.

The trade teams will likely meet again in another 90 days, Bessent added.

Investor sentiment took a hit, with mixed corporate earnings and forecasts compounding the gloom and sending markets lower after recent gains.

There were some bright spots: Boeing narrowed its quarterly losses and Starbucks’ CEO Brian Niccol said the company was showing signs of a turnaround, despite reporting its sixth straight quarter of same-store sales declines. 

But warnings also emerged. UPS, often seen as a proxy for broader U.S. consumer activity, withheld forward guidance on revenue and operating profit, citing ongoing macroeconomic uncertainty.

All eyes now turn to the Federal Reserve, which concludes its policy meeting Wednesday. Other key economic data are also on deck this week, including a reading of gross domestic product and private payroll data due out Wednesday.

— Nur Hikmah Md Ali

U.S.-China tariff truce extension in limbo. Treasury Secretary Scott Bessent said Tuesday that Trump would have to sign off on any deal after the two countries concluded trade talks in Sweden with no extension. But he told CNBC that the meeting was “far-reaching, far-reaching, robust and highly satisfactory.”

Markets fall on stalled trade talks. On Tuesday, the S&P 500 and Nasdaq Composite closed lower, retreating from their fresh record highs at the opening bell. Europe Stoxx 600 was up 0.29%.

Corporations sound the alarm after mixed earnings. Boeing and Procter & Gamble reported earnings beats, but others missed expectations like Spotify, which posted weak guidance, while shipping giant and U.S. consumer bellwether UPS slashed its dividend. 

Starbucks reports sixth straight quarter of same-store sales declines. But CEO Brian Niccol said in a prerecorded video published with the earnings report that the numbers “don’t yet reflect all the progress we’ve made,” and their comeback is “gaining momentum.” Shares of the company climbed over 4% after hours.

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Samsung backs South Korean AI chip startup Rebellions ahead of IPO

South Korean artificial intelligence chip startup Rebellions has raised money from tech giant Samsung and is targeting a funding round of up to $200 million ahead of a public listing, Sungkyue Shin, chief financial officer of the startup, told CNBC on Tuesday. He declined to say how much the tech giant poured in. 

The current funding round is ongoing and Shin said Rebellions is talking to its current investors as well as investors in Korea and globally to participate in the capital raise. Rebellions has some big investors, including South Korean chip giant SK Hynix, telecommunication firms SK Telecom and Korea Telecom, and Saudi Arabian oil giant Aramco. 

– Arjun Kharpal