Chinese ETFs and ADRs fell in premarket trading on Tuesday as initial optimism from the tariff truce with the US gave way to concerns that Beijing would hold back on stimulus measures.

YINN, Kingsoft Cloud fell 5%; XPeng, NIO fell 4%; Li Auto fell 3%; Alibaba fell 2%; PDD, JD.com fell 1%.

The retracement reflects worries that Chinese policymakers would have less incentive to push through higher fiscal spending or enact more stimulus, which are needed to address growth challenges, according to Sat Duhra, a portfolio manager at Janus Henderson Investors. It’s also a sign that investors are shifting their focus toward the material impact of still-higher US import duties, as well as uncertainties over further bilateral talks in the coming months.

“The uncertainty is no longer about what tariffs will be imposed, but about how these levels will hit earnings and economic momentum, especially heading into the third quarter,” said Charu Chanana, chief investment strategist at Saxo Markets. “So while sentiment has improved, the real test lies in how consumers and corporates respond to these new trade realities.”

The US said Monday it will slash duties on Chinese products to 30% from 145% for a 90-day period, while Beijing agreed to drop its levy on most goods to 10%.

Another factor weighing on sentiment is concern that the Trump administration would escalate tensions again. Previous episodes of him walking back agreements during the 2018 trade talks are reminders for investors to stay cautious.

“There is still uncertainty as to whether there will be any back and forth in the 90-day buffer period,” said Shen Meng, director at Beijing-based investment bank Chanson & Co.