US markets opened Friday with a drop, coming off the S&P 500's worst day since 2020 and following China's move to match President Trump’s big raise in tariffs.

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The US and China could negotiate a deal to strengthen the yuan in exchange for an easing of tariffs, according to Ray Dalio, founder of Bridgewater Associates, who recently met with senior Chinese leaders.

China said on Saturday "the market has spoken" in rejecting U.S. President Donald Trump's tariffs, and called on Washington for "equal-footed consultation" after global markets' dramatic reaction to the trade levies,

China's reaction to new U.S. tariffs will likely focus on domestic stimulus and strengthening ties with trading partners, according to analysts based in Greater China. "I think the focus of China's response in the near term won't be retaliatory tariffs or such measures,