The overall impact depends on whether President Trump continues to ease the duties he initially introduced or decides to pursue his original, aggressive approach. But some specific effects are already coming into focus.

Beijing continues to be willing to endure economic hardship to put pressure on the U.S., even as the Trump administration hints at a more conciliatory approach.

Treasury Secretary Scott Bessent sparked optimism in financial markets Tuesday when he called the tariff-driven trade war between the U.S. and China "unsustainable" and said it would likely "de-escalate.