Asian shares are mostly higher, tracking a rebound on Wall Street after President Donald Trump pulled back on some of his tariffs.

The S&P 500 closed below the level it traded on Election Day last night, extending its 2025 decline to around 1.55%.

U.S. stocks climbed after President Donald Trump pulled back on some of his tariffs, raising hopes he may avoid a worst-case trade war that grinds down economies and sends inflation higher.

China on Tuesday swiftly retaliated against fresh U.S. tariffs, announcing 10%-15% hikes to import levies covering a range of American agricultural and food products, moving the world's top two economies a step closer toward an all-out trade war.

Wall Street lost momentum before the opening bell Tuesday and markets in Europe and Asia slid after new tariffs were imposed by U.S. President Donald Trump, and more retaliatory tariffs were announced by China.

China’s embassy in the U.S. issued a warning that the country was ready for a trade war or “any other type of war" with the U.S. following Trump’s additional 10% tariffs imposed on the country Tuesday.

The tariff actions, which could upend nearly $2.2 trillion in two-way annual U.S. trade, went live hours after Trump declared that all three countries had failed to do enough to stem the flow of the deadly fentanyl opioid.