Stock Rally Turns to Slump as Trade-Deal Hopes Ebb

Good morning. Stocks slump again as Trump pushes ahead with a 104% tariff on China. Even some of Wall Street’s fastest and savviest trading firms are taking a hit. And a would-be tech utopian city is looking for a host. Listen to the day’s top stories.

Wild swings lashed Wall Street for a fourth straight session—with stocks erasing an earlier rally that was the biggest since 2022—as the White House said it’ll proceed with higher tariffs on roughly 60 trading partners. That includes levies amounting to 104% on many Chinese exports, set to take effect at midnight New York time. Chinese Premier Li Qiang said Beijing has ample policy tools to “fully offset” any negative external shocks and is strongly confident it can maintain sustainable economic growth.

China aside, Trump signaled a fresh willingness to consider requests from other countries to reduce the duties. The president said prospects for a deal with South Korea were “looking good” after he spoke with its acting leader, Han Duck-soo. Treasury Secretary Scott Bessent said there’s potential for the US to score advantageous trade deals with major partners as foreign nations appeal to Washington for negotiations.