Overview

• China's Commerce Ministry confirmed it is 'evaluating' U.S. offers to engage in trade talks, marking a potential shift in the ongoing trade war.
• Beijing has demanded the U.S. show sincerity by rescinding the 145% tariffs imposed on Chinese imports before formal negotiations can proceed.
• Both nations have introduced selective tariff exemptions, with China waiving levies on $40 billion worth of U.S. goods to soften the economic impact.
• Treasury Secretary Scott Bessent expressed optimism about phased de-escalation, emphasizing that initial steps would focus on reducing tensions before broader agreements are reached.
• The trade war has disrupted global supply chains, with economic forecasts warning of significant GDP losses and inflationary pressures in both countries.