Treasury Secretary Scott Bessent privately stated that the US-China trade war's current state is unsustainable, predicting a de-escalation. However, formal talks haven't begun. President Trump, while acknowledging market increases following Bessent's remarks, maintains a positive outlook on US-China relations, suggesting tariff reductions. Despite ongoing negotiations with various countries, Trump hasn't indicated any plans to lower his baseline 10% tariff. China has warned against deals harming its interests, while the White House claims to have received numerous trade deal proposals. Market uncertainty is heightened by Trump's pressure on the Federal Reserve to cut interest rates.

Prepared by Christopher Adams and reviewed by editorial team.