The S&P 500 closed with a marginal drop in the last meeting of the week at Wall Streetafter a month of strong earnings, after US President Donald Trump said China had violated the preliminary trade agreement, rejuvenating fears that the US may enter a prolonged trade war of high imposition dictatorial.
Specifically, Trump said in a post on social media that China “violated” the current trade agreement with the US following Finance Minister Scott Bessed’s statement that US -China trade negotiations on duties “have been stuck”. Thus, the Dow Jones rose by 0.13%, the S&P 500 fell by 0.01% while Nasdaq It fell 0.32%on Wall Street.
The Trump government notes that its controversial plan for broad and high tariffs is in a legal impasse. Investors are now wondering if, and when, a long -term agreement can be reached between the US and China.
Legal concerns culminated when the Court of Justice International Trade on Wednesday night (28.5.2025) suspended the majority of Trump’s duties. However, an appellate court was suspended yesterday, allowing the duties to remain in force until next week.
The Trump government is considering using the 1974 trade law to impose duties up to 15% for 150 days, according to the Wall Street Journal.
The legal dispute about tariffs offers a new dose of uncertainty in an already unstable market. Investors have to deal with macroeconomic concerns associated with duties and are afraid that the upheaval of US commercial policy can cause recession.