Beijing shrugs off risk to exports amid signs of US retreat on electronics levies

China has played down the risk of damage to its exports from Donald Trump's tariffs, with an official saying the "sky won't fall" as stock markets rose amid signs of a retreat on electronics restrictions.

- Jasper Jolly Kalyeena Makortoff Callum Jones New York

The US president claimed his strategy was working yesterday, with record levels of investment. Addressing reporters at the White House, he continued to threaten new tariffs on pharmaceutical goods.

As fears of a potential downturn continue to mount, Kevin Hassett, the director of the US National Economic Council, pushed back against warnings that a recession could take hold this year. "One hundred per cent not," he told Fox Business.

Leading tech stocks struggled for direction amid confusion over the Trump administration's stance on key US imports including smartphones and semiconductors. While it emerged that electronic goods and components were exempt from the sweeping tariffs imposed this month, Trump and his officials have signalled they may not be spared for long.

Shares in Apple and Nvidia started the day higher, but by lunchtime in New York were up 2% and down 1%, respectively.