China’s trade surplus with the U.S. jumped to nearly $103 billion in March, much more than expected, as exports rose by 12.4% from a year earlier. One reason for the spike was that companies rushed to ship in goods ahead of the steep U.S. tariffs that took effect in April. While President Trump announced temporary exemptions on phones and computers, he later clarified that those products will still get hit with tariffs soon. China called the exemptions a “small step” and urged the U.S. to do more to ease tensions.
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Both countries have now raised tariffs on each other’s goods to 145%. As a result, China has been redirecting more of its exports to Southeast Asia, with shipments to Vietnam and Thailand reaching record levels. It is also worth noting that although U.S. officials have hinted that some informal talks have started, high-level discussions are unlikely to happen anytime soon. As a result, analysts believe that any real progress may not come until there’s more economic pain or a clearer deal on the table.
Meanwhile, experts are saying that these unpredictable tariff decisions are shaking investor confidence. Markets are reacting in unusual ways, and many investors are starting to question the safety of U.S. assets. While Chinese stocks recently rose, thanks to the temporary tariff pause, Bloomberg economists warn that the strong March export numbers may not last.
Is QQQ a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on the Nasdaq 100-tracking QQQ ETF based on 90 Buys, 12 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average QQQ price target of $591.34 per share implies 29% upside potential.
