GE HealthCare Technologies is among the top S&P 500 performers early Friday amid news that China may shield medical equipment and some other goods from the across-the-board 125% retaliatory tariff on U.S. imports. S&P 500 futures are pointing slightly lower after a three-day 6.3% surge fueled by President Donald Trump's talk of lowering tariffs on China and seeking a trade deal.
But don't mistake that for evidence that the U.S. and China are moving toward a trade war resolution. At the moment, Beijing is trying to ease some pain points caused by the trade war, rather than signaling retreat.
No Off Ramp For U.S.-China Trade War
China's move is similar to Trump's decision to carve out an exemption for the Apple iPhone and imports of other electronics from the bulk of the 145% tariff he's slapped on Chinese imports. However, Trump's relief may be temporary, since he has said he plans to impose additional tariffs on all U.S. imports of semiconductors and electronics.
On Thursday, China denied that it's engaged in trade talks with the Trump administration and called for the U.S. to cancel all of the Trump tariff measures. Beijing may be willing to hold out for a good deal because Trump's reversals and financial market fallout suggest he may need one.
On the other hand, there is plenty of doubt on Wall Street that Trump's efforts to tamp down market panic over his trade policies signal an important shift. An analysis from Piper Sandler argues that "Trump has not pivoted" and predicts "few, if any, comprehensive deals with our major trading partners over the next couple of months."
In addition to medical equipment, reports from Bloomberg, Reuters and other outlets indicated that Beijing may suspend tariffs on industrial chemicals like ethane and plane leases.
However, The Wall Street Journal reported on Thursday that U.S. pork purchases by China sank 72% in the week through April 17 from the prior week, while soybean purchases crashed 96%.
GE HealthCare
GE HealthCare stock tumbled on April 3, after Trump unveiled his reciprocal tariffs, then plunged again the next day as Beijing retaliated with higher tariffs of its own. In 2024, GE HealthCare netted $2.36 billion in revenue from China, or about 12% of the total.
On the same day that it retaliated by hiking tariffs, Beijing also launched an antidumping investigation of X-ray tubes from the U.S. and India used in CT machines, BTIG analyst Ryan Zimmerman noted.
GEHC stock was up 3% to 69.05 early Friday, bringing the week's gain to nearly 11%. Earlier in April, GEHC touched a two-year low and it remains 27% below its 52-week high.
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