Beijing escalated its response to Trump’s latest tariff threat, vowing to “fight to the end” if the U.S. proceeds with a 50% hike, according to The Wall Street Journal. China devalued the yuan and backed its stock market. U.S. stock futures jumped over 1%, and Japan’s Nikkei 225 surged 6% after Tokyo prioritized trade talks with the U.S. The Trump administration suggested flexibility on tariffs for allies including Japan and Israel.
