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Trump tariffs live updates: Automakers get reprieve as Bessent, Lutnick tout deal progress
Yahoo Finance
Updated 2 min read
Some tariff relief is on the way for automakers after President Trump signed an order offering exemptions to certain car and parts tariffs.
The order clarifies that companies already paying tariffs on imported vehicles won't be charged other levies, such as on steel. The US also eased duties on foreign parts.
The climbdown comes after intense lobbying from the auto industry, which warned of a huge hit to sales and price hikes for consumers in the face of 25% tariffs on vehicle and parts imports. General Motors (GM) on Tuesday became the latest company to pull its forward guidance, warning of tariff-related uncertainty.
Investors are also focused on US and China tariff tensions amid signs of deescalation, as Trump sends mixed signals on the state of relations.
Reports emerged last week that China quietly rolled back tariffs on some US semiconductor products, easing pressure on its tech sector, along with certain US pharmaceuticals. Treasury Secretary Scott Bessent said Tuesday that the "onus" was on China to deescalate tensions.
But with 145% tariffs on China now in place for several weeks, cargo shipments have dropped dramatically, with estimates suggesting a 60% decline, per Bloomberg. Experts are warning of coming supply shortages and layoffs in sectors like trucking, logistics, and retail.
Already, there is evidence that companies are stockpiling goods. The US trade deficit widened sharply in March, as imports to the US surged ahead of Trump's April 2 "Liberation Day" announcement.
China has struck a publicly defiant tone, and it's unclear if — and at what level — the US and China have spoken.
Even as the bluster continues, the signs of a walk back have boosted Wall Street hopes for broader tariff deescalation after an intense back-and-forth between the world's two largest economies. China in recent weeks has raised duties on imports of US goods to 125% from 84%, while US tariffs on Chinese imports have ballooned to, on most imports, 145%.
On Trump's 100th day in office, administration officials also looked to play up progress with other countries. Commerce Secretary Howard Lutnick on Tuesday claimed the US and one unnamed country were on the doorstep of a trade deal. Bessent said the US was "very close" to a deal with India.
Here are the latest updates as the policy reverberates around the world.
LIVE 717 updates
Amalya Dubrovsky
Trump says China likely to 'eat' US tariffs, limit impact on US consumers
Bloomberg reports:
Read more here.
Grace O'Donnell
Nasdaq recovers from 'Liberation Day'
US stocks swung higher during a choppy day of trading on Tuesday as hopes of further tariff relief fueled gains.
The S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) jumped about 0.6% and 0.5%, respectively. The Dow Jones Industrial Average (^DJI) climbed 0.8%, or just over 300 points, extending its longest win streak of 2025.
Notably, the Nasdaq has made a full recovery since President Trump announced his "Liberation Day" tariffs, which triggered a massive sell-off in early April. The index closed near its April 1 levels.
Year to date, the Nasdaq is still down by 9.5%, while the S&P 500 and Dow are off by 5.4% and 4.7%, respectively.
Read more here.
Brett LoGiurato
Lutnick: 'I have a deal done, done, done, done'
Commerce Secretary Howard Lutnick on Tuesday claimed the US and one unnamed country were on the doorstep of a trade deal.
"I have a deal done, done, done, done, but I need to wait for their Prime Minister and their parliament to give its approval, which I expect shortly," Lutnick said on CNBC.
Lutnick did not name the country. Trump administration officials including Treasury Secretary Scott Bessent have hailed progress in negotiations with India and various countries in Asia.
"We are very close on India," Bessent said at a White House press briefing Tuesday. He also name-checked Japan and South Korea.
The US has been working to secure trade deals with many of its top trading partners in the weeks since President Trump imposed — and then largely backtracked on — sweeping tariffs on his self-proclaimed "Liberation Day." Bessent said the US is moving forward on negotiating with 17 top partners — not including China
Grace O'Donnell
Coca-Cola CEO: We are holding prices for now despite the trade war
Yahoo Finance's Brian Sozzi reports:
Read more here.
Grace O'Donnell
Chart: China is the US's third-largest export market
Earlier today, Treasury Secretary Scott Bessent underscored how the US-China trade war will inflict more pain on the Chinese economy, saying that the country could quickly lose 10 million jobs and is therefore responsible for taking the first step to lower tariffs (scroll down to read his comments).
And as US-bound cargo shipments from Shanghai plunge, there's been a growing concern about empty store shelves and product shortages in the US.
But on the other side of the trade ledger, China represents the third-largest export market for US goods behind Mexico and Canada.
According to a new report from the US-China Business Council, the US exported $140 billion worth of goods to China in 2024, which is linked to 531,232 jobs across the US.
Despite the trade deficit, that market is vital for many US industries. It's why oilseed and grain farmers, in particular, feared Trump's tariffs on Chinese goods and China's retaliatory 125% tariff rate.
Texas, California, Washington, Indiana, and North Carolina are the states that may be hit hardest by China's counter-tariffs, as these states were the largest exporters to China in 2024. Texas alone exports more than $21 billion of goods to China.
Grace O'Donnell
AstraZeneca CEO: Trump tariffs 'not material long term'
AstraZeneca (AZN) CEO Pascal Soriot told Yahoo Finance in an interview Tuesday that tariffs are "certainly not material long term."
Soriot said that AstraZeneca will shift manufacturing as needed across its global network, which includes 11 manufacturing sites in the US. Most of the products sold in the US are manufactured in the US, Soriot said.
Yahoo Finance's Anjalee Khemlani reports:
Read more here.
Grace O'Donnell
Scott Bessent says China could lose 10 million jobs 'very quickly' if tariffs don't drop
Yahoo Finance's Jennifer Schonberger reports:
Read more here.
Grace O'Donnell
Consumer confidence falls for 5th straight month as tariff uncertainty weighs on expectations
Yahoo Finance's Allie Canal reports:
Read more about today's economic data releases and breaking stock market news here.
Keith Reid-Cleveland
China waives 125% tariffs on US ethane imports
New reports claim that China has waived tariffs on ethane coming from the United States. The move comes a week after China took similar steps with pharmaceutical, aerospace, and semiconductor products to soften any major economic impact from a trade war.
Reuters reports:
Read more here.
Daniel Howley, Myles Udland
White House slams Amazon for 'hostile and political act'
Amazon (AMZN) appears to have gotten itself on the wrong side of the Trump administration over a report that the e-commerce giant will begin showing tariff-related price increases on its website next to a product's cost.
When asked about the news, which was first reported by Punchbowl News, on Tuesday, Press Secretary Karoline Leavitt called it "a hostile and political act."
Shares of Amazon were off more than 1% in early trading.
Grace O'Donnell
Trade deficit widens in March
The US trade deficit widened sharply in March ahead of President Trump's "Liberation Day" tariff announcement, Reuters reports.
The goods trade gap increased 9.6% to $162 billion, the Commerce Department's Census Bureau said on Tuesday.
This was largely driven by a surge in goods imports as businesses likely tried to ship products ahead of anticipated tariffs. Goods imports soared $16.3 billion to $342.7 billion, while exports rose $2.2 billion to $180.8 billion.
Imports are a subtraction in the calculation of GDP, meaning that the large number of imports could drag on the first quarter gross domestic product (GDP) reading. The Atlanta Fed's most recent forecast estimates that GDP will have fallen 2.5% in Q1.
Read more here.
Michael B. Kelley
Bessent: More certainty is coming with trade deals
Treasury Secretary Scott Bessent took questions from reporters on Tuesday morning to discuss President Trump's trade policy tactics, asserting that the uncertainty roiling markets in recent weeks is a negotiating tactic and certainty would arrive as trade deals come together.
Bessent stated that they expected to speak to "at least" 17 out of the 18 "important" trading partners that the US had identified in "the next few" weeks, highlighting that trade talks were "very close on India" and that the US was holding "substantial talks" with Japan.
Bessent repeatedly declined to discuss engagement with China.
“I believe that it’s up to China to de-escalate, because they sell five times more to us than we sell to them, and so these 120%, 145% tariffs are unsustainable,” he said.
Asked about market volatility amid the trade policy, Bessent noted that markets have likely been disrupted by Trump bringing "strategic uncertainty in the negotiations." Bessent later asserted that the "aperture of uncertainty" would narrow as new trade deals were announced.
Asked about Amazon (AMZN) reportedly planning to add the cost of tariffs to individual items, White House press secretary Karoline Leavitt fielded the question and called the move a "hostile and political act."
More coverage to come. Check back or refresh for updates.
Grace O'Donnell
Adidas holds back on profit upgrade due to tariff uncertainty
It's not just about what companies are doing in the face of steeper tariffs. It's about what they aren't doing.
On Tuesday, German sportswear maker Adidas (ADS.DE) refrained from raising its 2025 financial forecast, saying the uncertainty around US tariffs makes it difficult to plan ahead.
Reuters reports:
Read more here.
Grace O'Donnell
UPS to cut 20,000 jobs on likely lower Amazon shipments
United Parcel Service (UPS) said on Tuesday it plans to cut 20,000 jobs as it expects tariffs to slow trade and order volumes from its biggest customer, Amazon (AMZN).
The move is aimed at cutting costs ahead of an anticipated demand slowdown in the US that is expected to disrupt shipping. Two of UPS's other big customers, discount e-commerce players Shein and Temu, have also faced a significant slowdown after President Trump removed the de minimis exemption that previously exempted cheap goods from tariffs.
Per Reuters, UPS did not update its full-year outlook, citing economic uncertainty. UPS stock rose less than 1% in premarket trading on Tuesday.
Read more here.
Grace O'Donnell
India prepared to 'future-proof' trade deal as sweetener in US talks, sources say
Reuters reports:
Read more here.
Grace O'Donnell
Coca-Cola calls Trump tariffs 'manageable'
Coca-Cola (KO) stock climbed over 1% on Tuesday morning after the beverage giant said in a statement that the impacts of tariffs would be "manageable" this year. Coke also didn't pull its guidance or issue a profit warning.
Yahoo Finance's Brian Sozzi reports:
Read more here.
Brett LoGiurato
GM pulls guidance on Trump tariffs
General Motors (GM) on Tuesday became the latest company to pull its forward guidance amid uncertainty stemming from the effects of President Trump's tariffs.
The move came as the Trump administration looked to soften the tariff blow on automakers. The US will "destack" tariffs — meaning, for instance, that carmakers who are paying automotive-related tariffs wouldn't also have to pay duties on steel and aluminum.
GM said, for now, that investors couldn't "rely" on its guidance amid the uncertainty, and it postponed its earnings call until Thursday to assess the effects of Trump's auto tariff shift.
More from Yahoo Finance's Pras Subramanian's report:
Karen Friar
Trump will soften impact of auto tariffs on Tuesday: Lutnick
President Trump is poised to ease the tariff pressure on automakers, in the wake of industry warnings over the impact on sales and prices for consumers.
His administration will lift some duties on foreign parts used in US car and truck assembly, Commerce Secretary Howard Lutnick confirmed late Monday. In addition, automakers already paying 25% tariffs on imported vehicles will not see other levies — such as on steel or aluminum — stacked on top.
The measures, expected to be made official on Tuesday, will be retroactive, meaning that reimbursements will be paid.
Reuters reports:
Rian Howlett
Canada Liberal Party wins election by small margin, places Carney in position to form majority
Canada's election draws to a close with a 5-seat difference between the major parties.
Bloomberg Reports:
Read more here.
Grace O'Donnell
One chart shows tariffs are already slowing economic activity
President Trump's tariffs have been weighing on soft economic data, such as consumer sentiment. But a key question for investors remains to what extent the effects of tariffs will show up in hard data.
Yahoo Finance's Josh Schafer points out that one chart shows at least an early indication of the effects of tariffs on US-China trade:
Read more here.
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