Comments from the president and Treasury Secretary Scott Bessent raised expectations that the economic rivals could find a way to reduce the intensity of the trade war.

The US is no longer China's biggest export market: that spot now belongs to South East Asia. In fact China was the largest trading partner for 60 countries in 2023 - nearly twice as many as the US. The world's biggest exporter, it made a record surplus of $1tn at the end of 2024.

Shares of electric carmaker Tesla surged 6.5% in the first trading since CEO Elon Musk said his time devoted to the Department of Government Efficiency would "drop significantly" next month, paving the way for his return to the company.