Another bumpy day

US markets seem set for another bumpy day. Here’s the latest

From CNN staff

US markets are still feeling queasy over the twists and turns of Trump’s trade war, after China announced overnight it was raising its retaliatory tariffs on US imports to 125%.

Meanwhile, President Donald Trump is set to undergo his annual physical examination Friday.

Here are the latest developments:

• China hits back: China has raised its retaliatory tariffs on US imports from 84% to 125%. Beijing said Trump’s decision to impose a 145% tariff on Chinese goods showed his trade policy is “nothing more than a numbers game” and “a joke.”
• Markets open down: The Dow was down 200 points, or 0.5%, when markets opened Friday. The S&P 500 fell 0.4% and the Nasdaq was 0.2% lower. Despite a huge rally when Trump U-turned on “reciprocal” tariffs, market sentiment has since soured once more.
• New lows: Consumer sentiment plunged 11% this month to a preliminary reading of 50.8, the University of Michigan said in its latest survey released Friday, the second-lowest reading on records going back to 1952. April’s reading was lower than anything seen during the Great Recession.
• No US-China talks yet: The US has not initiated trade negotiation talks with China, Trump’s trade representative, Jamieson Greer, told reporters Friday. In his first public comments on the ongoing trade war, Xi had said earlier that China is “not afraid of any unjust suppression.”
• El Salvador deportation: The Supreme Court on Thursday said the Trump administration is required to “facilitate” the return of Kilmar Armando Abrego Garcia, a Maryland man mistakenly deported to El Salvador, but stopped short of requiring the government to return him to the US. A federal judge will hold a hearing later today over his return.
• Trump’s physical: The president is set to undergo his annual physical examination Friday morning before heading to Mar-a-Lago for the weekend.
• “Queasy” bond market: After shrugging off huge losses in the stock market, Trump appears to have been spooked by what he called a “queasy” bond market, forcing him to abandon his sweeping “reciprocal” tariffs on Wednesday. Yields on the 10-year US Treasury note have begun to climb again, raising questions about investors’ appetite for typically “safe haven” US assets.
• EU could tax US tech firms: The European Union is prepared to tax the digital advertising revenues of companies like Meta, Google and Facebook if tariff talks with the US fail, European Commission president Ursula von der Leyen told the Financial Times. A senior EU official will head to Washington Sunday “to try and sign deals” on trade, a spokesperson said.
• Xi’s first foreign trip: Xi Jinping will travel next week to Vietnam, Cambodia and Malaysia – three countries that were set to be hit hard by Trump’s “reciprocal” tariffs – on what will be his first foreign visit of 2025. Analysts have warned that Trump’s tariffs could push potential allies in the region, like Vietnam, closer to China.