US-China Trade Relations

US President's Stance

•  US President plans to be “very nice” in trade talks with China, indicating a possible softening of his stance amid market volatility.
• He mentions that tariffs will drop if a deal is reached, but they won't be reduced to zero.
• No intention to discuss politically sensitive issues like Covid-19 during talks with Chinese President.
• US President has not offered to unilaterally reduce tariffs on China, confirmed by treasury secretary Scott Bessent.

Market Impact

• US stocks and Treasuries have been affected since the implementation of sweeping tariffs on April 2.
• 145% duties on Chinese shipments remain, with exceptions for computers and consumer electronics.

China's Response

• China is intensifying its outreach to other countries and warning against trade deals with the US that harm Beijing.
• Chinese President and foreign ministry have reiterated that trade wars undermine all countries' rights and interests.
• Chinese media suggests US President's recent remarks indicate a softening stance on tariffs.

Future of Trade Talks

• China wants to see preliminary actions from the US before engaging in discussions.
• Scott Bessent suggests a need to de-escalate between the two largest economies.
• Comprehensive deal negotiations could take two to three years; discussions haven't begun yet.

Legal Challenges

• US President seeks to have legal challenges to tariffs heard by the US Court of International Trade.
• The court had previously ruled against Trump for 2018 steel tariffs, but an appeals court later sided with him.