The ASEAN bloc of Southeast Asian nations and China on Tuesday signed an upgrade to their free trade agreement, which includes sections on digital, the green economy and other new industries, Beijing's Commerce Ministry said.

A tariff hike could potentially damage the Chinese economy. The U.S. imported about $438 billion worth of goods and services from China last year, making it the largest destination for China’s exports. In all, that figure accounts for about 15% of China’s exports, according to the Office of the U.S. Trade Representative.

Stocks spiked to al-time highs to start the week. extending gains from Friday's record-setting rally. Chips and rare earth stocks were among the big movers.

President Trump will meet with Chinese President Xi on Thursday in an attempt to stop the trade war from escalating. Also, Trump terminated trade talks with Canada again after a TV ad played an audio of former President Ronald Reagan criticizing tariffs.

European shares retreated on Tuesday, pausing after a third consecutive record-high close on signs of easing Sino-U.S. trade tensions, as investors assessed a slew of corporate earnings. The continent-wide STOXX 600 index was down 0.

Treasury Secretary Scott Bessent offered rough outlines of an agreement that include China easing rare earth export restrictions and buying “significant” amounts of U.S. soybeans in exchange for President Donald Trump removing his threat of adding 100% tariffs on China.