US stocks were poised to rise on Friday as China struck back at President Trump’s latest tariff with a total 125% tax — but hinted it wouldn’t hike rates any further.
Futures tied to the Dow Jones Industrial Average gained 65 points, or 0.2%, after plummeting 1,014.79 the day before.
The index has been on a wild ride over the past week as markets struggle to absorb back-and-forth trade war news, plunging more than 4,000 points after Trump revealed his so-called “reciprocal” tariffs last Wednesday, then recovering more than 1,500 points this week after he announced a 90-day pause on most of his harsher tariffs.
S&P 500 and Nasdaq futures inched up 0.1% and less than a tenth of a percentage, respectively, Friday morning after China revealed it wouldn’t be raising rates any further.
“If the US continues to impose tariffs on Chinese goods exported to the US, China will ignore it,” the country’s Ministry of Commerce said.
China’s move to hike tariffs to 125% marks its third retaliatory effort against the US, after Trump most recently announced a 125% tax on the nation, blaming Beijing’s “lack of respect.”
The White House later confirmed the total tariff on China was 145%, after stacking on top of earlier levies.
During a press conference on Friday, a spokesperson for China’s finance ministry said the Trump administration’s approach to tariffs was a “numbers game which has no practical significance on economics.”
“It’s become a joke,” the spokesperson continued in a dig at Trump.
