US and China Prepare for High-Level Trade Talks Ahead of April Summit

Treasury officials are moving to stabilize the world’s two largest economies through high-level trade negotiations in Beijing, seeking to preserve a fragile truce ahead of a presidential summit in April. Secretary of the Treasury Scott Bessent confirmed on Monday that senior staff traveled to China last week to strengthen communication channels and advance dialogue. Bessent and Chinese Vice-Premier He Lifeng have emerged as the primary negotiators as both nations seek transactional gains to stabilize markets previously impacted by tariff threats and counter-threats.

The move toward bilateral engagement occurs as other nations actively diversify their economic partnerships to reduce reliance on the United States. Canadian Prime Minister Mark Carney recently met with Chinese President Xi Jinping in Beijing, reaching an agreement to reduce tariffs on specific goods and permit the import of up to 49,000 Chinese electric vehicles into Canada. Additionally, the European Commission is advancing trade and security deals with Australia, India, and the Mercosur bloc to mitigate risks associated with shifting American trade policies.

Domestically, the administration is navigating conflicting economic and legislative priorities. President Donald Trump stated on Tuesday that he has ruled out further large-scale one-party reconciliation packages, asserting that the administration has "gotten everything passed" needed for the next four years. However, analysts point to potential friction between the president’s desire for lower mortgage rates and Federal Reserve nominee Kevin Warsh’s stated goal of shrinking the central bank’s $6.6 trillion balance sheet, which could conversely drive rates higher.

Simultaneously, federal immigration officials faced a three-hour House hearing regarding the fatal shootings of Renee Good and Alex Pretti in Minneapolis by federal agents. While ICE Acting Director Todd Lyons and CBP Commissioner Rodney Scott committed to providing Congress with the results of internal investigations, they declined to comment on the specifics of the active probes. The hearing highlighted deep partisan divisions over the administration’s immigration enforcement tactics, with some lawmakers comparing the methods to 20th-century authoritarian regimes.