Trade Wars Endgame: Why Only Trump and Xi Hold the Keys to a Deal

Forget the diplomats—this high-stakes economic showdown boils down to two men. As global markets hold their breath, the real negotiation power sits exclusively with the US and Chinese leaders.

Behind closed doors, beyond the tariffs and tech bans, this is a raw test of political ego and economic muscle. Wall Street’s betting on handshakes, but history shows these deals get inked only when the bosses say so.

Meanwhile, hedge funds keep charging 2-and-20 for front-row seats to the spectacle—because nothing sells like geopolitical theater with a side of management fees.

Bessent sees no shift in trading partners’ positions despite court intervention

Since the May deal, the Trump administration has shifted its focus to tariff talks with other major partners, including India, Japan and the European Union. Last week, Trump threatened to impose 50% of the duties on EU goods, only to delay that threat shortly thereafter. Bessent said partners such as Japan have continued to negotiate in good faith despite recent legal challenges.

On Wednesday, a U.S. trade court ruled that the president had exceeded his authority under the Emergency Powers Act by imposing most of those tariffs on imports from China and other nations.

Less than 24 hours later, a federal appeals court paused that ruling and reinstated the tariffs, saying it was pausing the trade court decision to consider the government’s appeal. The appeals court asked the plaintiffs to reply by June 5 and the administration to respond by June 9. That means the duties remain in effect while the appeal moves forward.

Bessent said he detected no shift in trading partners’ positions after the courts intervened. He plans to meet with a Japanese delegation on Friday in Washington to continue negotiations.

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