Trump says he will cut fentanyl tariff on Chinese goods and expects ‘good deal’ with Xi – business live

Aston Martin reported a ninefold increase in Q3 2025 losses to £112m and cut £300m from investment plans, citing significant macroeconomic headwinds including US tariffs and weak Chinese demand, which led to a 26% revenue decline. Concurrently, market sentiment improved as Donald Trump indicated he would cut fentanyl-linked tariffs on Chinese goods and discuss allowing Nvidia to export its Blackwell AI chips to China, signaling progress on a broader trade deal and causing Nvidia shares to jump while Asian markets rallied. Separately, the US Federal Reserve is widely expected to cut interest rates by a quarter point to 4%.

Analysis

Aston Martin reported a significant ninefold increase in Q3 2025 pre-tax losses to £112 million, driven by sustained US tariffs and weak demand in China. This poor performance led to a 26% revenue decline over the first nine months of 2025 and prompted a £300 million cut from investment plans, alongside a 5% workforce reduction and delayed EV launch. The company is now reviewing its product cycle to optimize costs, with hopes pinned on Valhalla supercar deliveries to improve future financial performance.

Concurrently, market sentiment improved following indications from Donald Trump that he would cut fentanyl-linked tariffs on Chinese goods and discuss allowing Nvidia to export its Blackwell AI processors to China. This potential concession, aimed at securing a broader trade deal, led to an 8.5% jump in Nvidia shares in Asian trading and a general rally across major Asian stock markets. The proposed easing of trade tensions and potential access to advanced AI technology for China represent a significant shift in US-China relations.

This positive trade development comes as the US Federal Reserve is widely expected to implement a quarter-point interest rate cut to 4%, signaling a potential easing of monetary policy. However, the broader trade landscape remains complex, as evidenced by ongoing deadlocked talks over a $350 billion trade deal between the US and South Korea, which continues to impose a 25% vehicle tariff on South Korean manufacturers.

Key Decisions for Investors

• Investors should exercise caution regarding Aston Martin given its significant Q3 losses, revenue decline, and ongoing macroeconomic headwinds, closely monitoring the impact of Valhalla supercar deliveries on future profitability.
• Consider the positive implications for Nvidia and other tech companies from potential US-China trade de-escalation, particularly regarding AI chip exports, but remain vigilant for concrete policy changes and implementation.
• Factor in the anticipated Federal Reserve interest rate cut as a potential tailwind for broader market liquidity and growth, while acknowledging persistent geopolitical trade complexities, such as the unresolved US-South Korea deal.