The possibility of trade negotiations appears to be part of efforts to seek an off-ramp from the recent spiral of tensions.

U.S. Treasury Secretary Scott Bessent said on Wednesday that he believes that excessively high tariffs between the U.S. and China will have to come down before trade negotiations can proceed but said President Donald Trump would not unilaterally cut tariffs on Chinese imports.

While U.S. stocks scored a second straight day of big gains on Wednesday, bond investors say American companies still need trade deals to overcome deep uncertainty sparked by President Trump’s tariff fight.