Sawt Falasteen - Trump says no one 'off the hook' on tariffs but markets rise

The world's two largest economies have been locked in a fast-moving game of brinkmanship since Trump launched a global tariff assault that particularly targeted Chinese imports.

Tit-for-tat exchanges have seen US levies imposed on China rise to 145 percent, and Beijing setting a retaliatory 125 percent band on US imports.

The US side had appeared to dial down the pressure slightly on Friday, listing tariff exemptions for smartphones, laptops, semiconductors and other electronic products for which China is a major source.

But Trump and some of his top aides said Sunday that the exemptions had been misconstrued and would only be temporary as his team pursued fresh tariffs against many items on the list.

"NOBODY is getting 'off the hook'... especially not China which, by far, treats us the worst!" he posted on his Truth Social platform.

The Chinese commerce ministry said Friday's move was only "a small step" and all tariffs should be cancelled.

Chinese President Xi Jinping warned Monday -- as he kicked off a Southeast Asia tour with a visit to Vietnam -- that protectionism "will lead nowhere" and a trade war would "produce no winner".

Writing in an article published in a Vietnamese newspaper, Xi urged the two countries to "resolutely safeguard" the multilateral trading system, global supply chains and a "cooperative international environment".

China has sought to present itself as a stable alternative to an erratic Washington, courting countries spooked by the global economic storm.

Trump's trade war has raised fears about an economic downturn as the dollar has tumbled and investors have dumped US governments bonds.

Asian and European stock markets rallied on Monday, after days of extreme volatility over several tariff twists and turns since Trump presented his "Liberation Day" levies on April 2.

The Paris, Frankfurt and London stock exchanges were up around two percent in morning deals, while Tokyo finished 1.2 percent higher and Hong Kong gained more than two percent.

Trump has imposed a universal tariff of 10 percent but paused higher duties for dozens of trading partners for 90 days, while maintaining pressure on China.

- Short-lived relief? -

Washington's new exemptions will benefit US tech companies such as Nvidia and Dell as well as Apple, which makes iPhones and other premium products in China.

The relief could be short-lived with some of the exempted consumer electronics targeted for upcoming sector-specific tariffs on goods deemed key to US national defense networks.

On Air Force One Sunday, Trump said tariffs on the semiconductors -- which powers any major technology from e-vehicles and iPhones to missile systems -- "will be in place in the not distant future."

"Like we did with steel, like we did with automobiles, like we did with aluminum... we'll be doing that with semiconductors, with chips and numerous other things," he said.

"We want to make our chips and semiconductors and other things in our country," Trump reiterated, adding that he would do the same with "drugs and pharmaceuticals."

The US president said he would announce tariffs rates for semiconductors "over the next week," while his commerce secretary, Howard Lutnick, said they would likely be in place "in a month or two."

The White House says Trump remains optimistic about securing a deal with China, although administration officials have made it clear they expect Beijing to reach out first.

Trump's trade representative, Jamieson Greer, told CBS's "Face the Nation" on Sunday that "we don't have any plans" for talks between the US president and Xi.

- Japan negotiates -

The White House insists the aggressive policy is bearing fruit, saying dozens of countries have already opened trade negotiations to secure deals before the 90-day pause ends.

"We're working around the clock, day and night, sharing paper, receiving offers and giving feedback to these countries," Greer told CBS.

Japanese Economic Revitalisation Minister Ryosei Akazawa will visit Washington for negotiations this week, with his country's automakers hit by Trump's 25 percent tariffs on the auto sector.

He warned that Japanese company profits are already "being cut day by day".

"I will do my best, bearing in mind what's best for our national interests and what is most effective," Akazawa said in parliament.

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