US Treasury Secretary Scott Bessent has stirred cautious optimism by suggesting that a thaw in the US-China trade standoff is still on the table—framing it less as a global power struggle and more like a potential joint picnic under the stars. While calling for “reciprocity” from Beijing, Bessent made it clear that Washington still has “numerous levers of pressure” at its disposal, reminding observers that America knows how to show its teeth.

Despite elevated tensions, Bessent emphasized that the US is keeping “all options on the table” to prevent Beijing from gaining the upper hand. China responded swiftly by releasing documents implying stricter export controls on rare earth metals. This serves as an unsubtle reminder that critical supply chains remain a strategic bargaining chip.

Nevertheless, Beijing appears to be playing the long game. Officials have refrained from escalating the rhetoric, indicating that while China is not seeking an outright economic war but also has no intention of showing weakness either. The result is an ongoing tit-for-tat atmosphere that resembles a geopolitical chess match more than a trade war, with both sides seeking a more profitable position and investors trying to seize the moment and benefit from it.

Recent reports suggest that both sides are considering reducing reciprocal tariffs by as much as 80–90%, a move that could pave the way for what some view as a functional “ceasefire.” Markets responded positively. Shares of major multinationals, including Amazon, Tesla, Apple, and Nvidia, climbed between 5% and 9%. Meanwhile, demand for traditional safe havens such as gold and oil decreased.