China’s factory activity likely contracted in April, a Reuters poll showed on Tuesday, as Donald Trump’s "Liberation Day" package of tariffs brought a sudden halt to two months of recovery.

TD Cowen analysts highlighted significant decreases in shipping volumes at U.S. ports during a critical import season. According to Jason Seidl of TD Cowen, ocean freight data from Asia to the U.S. has seen a steep drop, with volumes down by 30% on the West Coast and 12% on the East Coast. The decline is attributed to several major retailers halting the shipment of non-essential items from China temporarily, due to the ongoing tariff paralysis which continues to impact the transportation sector and the broader economy negatively.

Most Asian stock markets advanced on Tuesday, led by gains in automakers after the U.S. moved to soften the impact of auto tariffs, while mainland Chinese stocks ticked down as Beijing held off from announcing fresh stimulus measures.

Crude oil prices fell on Tuesday as investors lowered their demand growth expectations due to the trade war between the United States and China, the world’s two biggest economies.

The dollar recouped some of its losses on Tuesday, supported by reports that the U.S. administration may ease planned tariffs, although investor caution lingered over whether a meaningful de-escalation in the U.S.-China trade conflict was in motion.

Oil prices were set for a weekly decline of nearly 2% on the back of oversupply concerns and uncertainty around tariff talks between the U.S. and China.