China and EU reassess trading relationship

U.S. Treasury Secretary Scott Bessent says China is playing with a “losing hand” in the escalating tariff back-and-forth between the two countries.

“I think it was a big mistake, this Chinese escalation, because they’re playing with a pair of twos,” Bessent said on “Squawk Box.”

Other countries appear to be more willing to negotiate than China, he said.

“If they come to the table with solid proposals, I think we can end up with some good deals,” he said, “and part of the calculus of that may be that some part of the tariffs stay on.”

Last night, members of the administration discussed which countries to prioritize for trade talks, he added.

— Jesse Pound

Founder and CEO of Citadel Ken Griffin is taking aim at Trump’s tariffs, calling them a a “huge policy mistake” that will hurt middle-class Americans.

“I am really afraid of us abdicating our role of leadership for the free world,” Griffin said at an event for the 100th anniversary of the University of Miami, per Bloomberg.

“That’s the path we’re on,” the GOP donor adds.

— Erin Doherty

Stephane Boujnah, CEO of Euronext, says the recent market selloff is not a sign of panic, but simply a rotation of assets.

“Since this began, money is leaving the United States to be reinvested in Europe,” Boujnah said in an interview with France Inter radio today.

Investors, he said, are struggling to navigate Trump’s unpredictability, which is making the U.S. “unrecognizable.”

“We are mourning the United States that we knew … which was very similar in values and institutions to Europe,” he said. “Now it looks more like an emerging country.”

Euronext operates markets in various European cities, including Paris, Milan, Amsterdam, Brussels and Dublin.

— Chloe Taylor

Historical allies the U.S. and European Union should have zero tariffs between them, Finnish Foreign Minister Elina Valtonen urged amid the bloc’s ongoing efforts to mitigate the impact of 20% White House duties it was slapped with last week.

“Engaging in a global trade war is the surest way to achieve a global recession,” Valtonen she said during a press conference, in comments reported by Reuters. “But of course the European Union now has to react to what the U.S. has put forward,

The EU has previously expressed willingness to take steps against Washington if negotiations fail, but it has yet to specify the nature and extent of these potential countermeasures.

— Ruxandra Iordache

Trump will sign energy-related Executive Orders this afternoon, and deliver a speech to House Republicans this evening, according to the White House schedule.

— Christina Wilkie

Von der Leyen and Chinese Premier Li Qiang held “constructive” talks today that touch on a possible mechanism for trade diversion in the wake of sweeping levies announced by the world’s first economy.

“In response to the widespread disruption caused by the US tariffs, President von der Leyen stressed the responsibility of Europe and China, as two of world’s largest markets, to support a strong reformed trading system, free, fair and founded on a level playing field,” according to an EU readout, which added that von der Leyen called for a “negotiated resolution to the current situation” that avoids escalation.

“The leaders discussed setting up a mechanism for tracking possible trade diversion and ensuring any developments are duly addressed,” the readout said.

Speculation has been mounting whether Trump’s protectionist agenda will push U.S. trade partners toward China in a bid to redress commercial relations.

The conversation between the Beijing administration and the EU chief takes place after Washington last Wednesday slapped China and the EU with reciprocal tariffs of 34% and 20%, respectively. Beijing has already retaliated with its own 34% levies on the U.S., which is now threatening further countermeasures.

— Ruxandra Iordache

The newly confirmed U.S. Trade Representative, Jamieson Greer, will testify before the Senate Finance Committee today at a hearing on “The President’s 2025 Trade Policy Agenda.”

Greer’s testimony will offer the Senate one of its first opportunities to question a Trump administration official about the president’s trade and tariff policy since Trump unveiled the sweeping new tariff regime.

The hearing will begin at 10:00 a.m. ET, and CNBC.com will stream the hearing on our liveblog.

— Christina Wilkie

Spanish Prime Minister Pedro Sanchez will visit China and Vietnam later this week, as Europe prepares to absorb the impacts of a new 20% tariff rate.

Sanchez is scheduled to visit Hanoi on Wednesday, the same day the new Trump tariff rates go into effect. Then he will go to Beijing, according to his office.

The visit underscores the pressure on EU bloc countries like Spain to reassess their trade relationships in the wake of Trump’s tariffs.

— Christina Wilkie