Another step toward de-escalation

Good morning. China considers lightening some costly tariffs, but says it’s still not talking to the US (contrary to what Donald Trump says). And wealth experts suggest how to invest $10,000 amid the trade turmoil. Listen to the day’s top stories.

Trade war latest: China is considering suspending its 125% tariff on some US imports, people familiar said, as the costs start to weigh heavily on certain industries. Medical equipment and industrial chemicals—for example, ethane, which Chinese plastics factories depend on—are among goods that may see exemptions.

Despite some cause for optimism, such as Donald Trump insisting that the US is having trade talks with China (Beijing says that’s not happening), companies are still dealing with perhaps the one thing worse than tariffs—uncertainty. Energy Secretary Chris Wright has tried to be reassuring, saying “That’s a short-term issue.”

But how’s a multinational to deal? Apple is aiming to import most of the iPhones it sells in the US from India by the end of next year in a bid to shift beyond China and mitigate risks. Walmart unveiled a program to help Chinese exporters sell their goods at home, a balance to its prior demand that local suppliers help the US company absorb prices increases.

Tariffs are sucking the air out of the room, but here’s a few other things Trump administration is doing—including ramping up deep-sea mining for critical minerals and asking the Supreme Court to let a ban on transgender servicemembers take effect. US banking regulators also withdrew guidance on crypto sector risks, giving lenders more freedom to offer products and services to customers dealing in digital assets.

In international relations, the US will demand that Russia accept Ukraine’s right to have its own army and defense industry as part of a peace agreement between Moscow and Kyiv, according to people familiar. Trump reiterated that Ukraine may need to cede some territory, though, echoing earlier comments from his vice president. In the meantime, a pullback in US aid has made Ukraine more vulnerable to Russian hacks.

Deep Dive: Miami’s Crowded Detention Center

The Trump administration’s fast-paced mass deportation campaign has created extreme overcrowding at a detention center in Miami, where people have been forced to sleep on floors and kept for days in short-term holding areas.

The Big Take

Opinion

AI chatbots are becoming an emotional rabbit hole, Parmy Olson writes. As creators increasingly prioritize “emotional engagement” in their apps, they must also confront the risks of building systems that mimic intimacy and exploit people’s vulnerabilities.

Before You Go

If there’s one benefit to the level of market volatility that US trade policy is provoking, it’s the renewed emphasis on diversification. Five wealth experts share where they’d recommend investing—including European pharmaceuticals, Japan, and luxury goods manufacturers.

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