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The EU has tabled a fresh trade proposal to the US as it tries to revive stalled talks with President Trump’s administration. The offer includes phased tariff cuts on non-sensitive goods, plus cooperation in energy, AI, and digital infrastructure.

The EU is readying $108B in retaliatory tariffs if talks fail. Trump has slapped 25% levies on EU steel, cars and more, and threatened action on pharma and chips. Brussels has delayed countermeasures to keep talks alive.

To sweeten the deal, EU officials are also willing to extend a 2020 tariff-free arrangement on US lobster imports, as reported by the FT. That pact, which expires in July, helped boost US exports to the bloc and could form part of a broader trade package.

The trade truce between the US and China appears increasingly fragile, as both sides trade barbs just more than a week after sending markets into euphoria by pausing sky-high tariffs on one another.

China’s Commerce Ministry said Wednesday that it would take legal action against any organization or individual assisting the US in discouraging the use of China’s advanced semiconductors.

Earlier, the US Commerce Department had warned that using Huawei chips anywhere in the world would violate US export controls — before later removing the reference.

The back-and-forth casts a shadow over the trade thaw, as focus turns to broader dialogue amid the 90-day tariff pause. The "reciprocal" tariffs have already had profound effects on the countries' trade: Chinese shipments of Apple's ( AAPL ) iPhone and mobile devices to the US fell to their lowest since 2011 in April.

Businesses and leaders continue to warn about the early effects of the tariffs. JPMorgan ( JPM ) CEO Jamie Dimon said Wednesday that he can’t rule out the US economy will fall into stagflation as the country faces huge risks from geopolitics, deficits and price pressures.

Last week, Walmart ( WMT ) also previewed coming price hikes, sparking a rebuke from Trump, who told the company to "eat the tariffs."

The warnings come as the Trump administration has ratcheted up its rhetoric over the last several days. Treasury Secretary Scott Bessent said on Sunday that tariff rates will go back to "reciprocal" levels if countries do not make trade deals with the US during the 90-day pause.

“President Trump has put them on notice that if you do not negotiate in good faith, you will ratchet back up to your April 2 level,” Bessent told CNN , highlighting the 18 key partners with whom the US is prioritizing trade deals.

Trump said last Friday that the US will set tariff rates for its trading partners within the next few weeks. He said his administration cannot negotiate trade deals with all countries at once due to limited capacity.

Here are the latest updates as the policy reverberates around the world.