stock futures can be attributed to traders' reassessment of tariff relief concerning China, following a notably volatile week. The U.S. government's decision to exempt certain tech goods, such as smartphones and computers, from tariffs has significantly buoyed investor sentiment . This development coincided with substantial gains in Asian markets, particularly the Hang Seng Index and the Hang Seng Tech Index, which rose by 2.4% and 2.7%, respectively . Such gains reflect a broader optimism regarding potential improvements in U.S.-China trade relations.
Trump exempted smartphones and computers as well as other devices and components like semiconductors from his new “reciprocal” tariffs, according to new U.S. Customs and Border Protection guidance issued late Friday. The president and his Commerce secretary, Howard Lutnick, then suggested Sunday that the exemptions aren’t permanent, stirring up more tariff uncertainty.
Trump said in a Truth Social post that these products are still “subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff ‘bucket.’”
The news of the exemption "fuels expectation of potential improvement in trade relations, and even the prospect of trade negotiations," said Li Shuding, an investor adviser of Galaxy Securities. He added that March loan data was better than expected, and "we expect intensive roll-out of policies" to support the economy. Before Monday's rebound, the CSI 300 Index and Hang Seng Index had lost 3.5% and 9.9%, respectively, since "Liberation Day" on April 2. Trump threatened to implement sweeping tariffs against trading partners with China being the major target, raising concerns about slowing global economic growth and disruptions to trade.
Trump has imposed various tariffs in recent weeks, after repeatedly postponing tariffs on Canada, Mexico and automotive imports. A baseline tariff of 10% went into effect on all countries, and higher rates were imposed on roughly 60 countries deemed the “worst offenders,” including tariffs on Cambodia (49%), Vietnam (46%) and the European Union (20%). Stocks plunged on April 3 after the news, with two consecutive sessions of sell-offs that wiped nearly $6 trillion in market value and continued with another volatile day on Monday, April 7, as the tariff chaos continued.
However, this optimism is tempered by lingering uncertainties surrounding ongoing trade tensions. Goldman Sachs has adjusted its forecasts for major Chinese indices downward due to concerns about the sustainability of these market rebounds amidst fluctuating tariff policies . Moreover, while President Trump’s pause on tariffs provided temporary relief to markets impacted by previous announcements (Bloomberg, 2025), investors remain cautious about future volatility stemming from unresolved trade disputes. Thus, while current trends indicate positive momentum in the stock market, underlying risks persist.
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