CNBC Daily Open: Trump blinks first in trade war he started

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

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%.

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.

SK Hynix warns of demand volatility after quarterly profit soars 158%
South Korea's SK Hynix on Thursday topped quarterly revenue and operating profit estimates, as demand for its high bandwidth memory offerings used in artificial intelligence chipsets stayed strong. Revenue rose about 42% in the March quarter from the same period a year earlier, while operating profit surged 158% year on year.

South Korea's quarterly GDP contracts for the first time in four years
South Korea's gross domestic product contracted 0.1% year on year in the first quarter, according to advance figures, marking the first contraction in its economy since the fourth quarter of 2020. This missed the 0.1% rise expected by a Reuters poll, and is a reversal from the 1.2% rise in the last quarter of 2024. Data from the Bank of Korea showed that the drop was mostly due to a fall in construction, with the sector contracting 12.4% year on year.

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 Asia, markets were mixed, with Japan and Australian markets climbing, but Hong Kong and mainland China falling.

[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. 

Why gold became the safe haven of choice as U.S. Treasurys and dollar sold off

Gold prices have been on a tear with the recent trade turmoil driving investors to the safe haven, while competing assets such as the U.S. Treasurys and the dollar have tumbled. 

This is tied to the seismic shift in U.S. trade policy under President Donald Trump, and bullion has "stepped into the void" as the market's safe haven asset of choice.

» Read more