Stock markets remained flat on Friday as investors awaited the commencement of anticipated trade talks between the United States and China over the weekend. The S&P 500 fell by 0.07%, the Nasdaq remained unchanged, and the Dow Jones decreased by 0.3%. The markets concluded the week without significant movement, initially dipping on Monday before recovering losses later in the week.
Treasury Secretary Scott Bessent expressed optimism on Tuesday, stating, “I look forward to productive talks as we work towards rebalancing the international economic system towards better serving the interests of the United States.” Bessent announced plans to travel to Geneva, Switzerland, to meet with Chinese officials.
Ahead of these discussions, President Donald Trump commented on what he believed would be an appropriate tariff on Chinese exports to the U.S., suggesting, “80% Tariff on China seems right! Up to Scott B.,” on his Truth Social platform.
This proposed tariff would lower the current rate of 145% set by Trump in April, yet it remains a significant tax on a major trade partner. In response, China has imposed tariffs as high as 125% on U.S. exports, contributing to a broader trade conflict that has affected global trade.
China reported a 21% year-over-year decline in exports to the U.S. in April, with U.S. ports experiencing decreased activity. The Port of Portland in Oregon, for instance, noted a 50% drop in exports since April 2, when Trump implemented his historically high tariffs.
Despite these challenges, President Trump stated that his administration is progressing on trade deals. On Thursday, he introduced a trade framework with the United Kingdom that allows the U.K. to export 100,000 cars annually to the U.S. at a 10% tariff, with higher volumes subject to a 25% tax. Steel and aluminum from the U.K. can enter the U.S. without tariffs. Tim Meyer, a trade law professor at Duke University, referred to this agreement as a minimal achievement. However, U.S. automakers like General Motors, Ford, and Stellantis criticized the deal for allegedly favoring the U.K. over Mexico and Canada.
President Trump reaffirmed his commitment to trade on Friday, stating, “Many Trade Deals in the hopper, all good (GREAT!) ones!” on Truth Social.
The stagnant markets on Friday concluded a market recovery that had uplifted stocks earlier in May. Initially, Trump’s tariff announcements had caused a market downturn, but they have since rebounded to levels seen before April 2, known as “Liberation Day.”
This report was originally featured on Fortune.com.
