The US and China headed into a second day of talks on Sunday and discussed trade, the economy and TikTok during a day of high-level talks in Madrid, a Treasury official confirmed.
The US team, led by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, met with the Chinese Vice Premier He Lifeng for six hours on Sunday.
President Trump told reporters that the talks are “going fine.“
On Friday, Trump said that his patience with Russian President Putin was “running out fast” and threatened Moscow with new economic sanctions as efforts to mediate ceasefire talks with Ukraine have fallen flat.
“It’ll be hitting very hard on with sanctions to banks and having to do with oil and tariffs also,” Trump said Friday in an interview on Fox News.
Elsewhere, The US Treasury called on G7 countries to hit China and India with what it called “meaningful tariffs” for buying Russian oil. This follows Trump’s request that the EU impose 100% tariffs on New Delhi and Beijing to squeeze Russia over its war in Ukraine, the Financial Times reported.
At the same time, Trump said the US and India have agreed to resume trade negotiations after weeks of back and forth over India’s purchase of Russian oil.
China urged Mexico on Friday to “think twice” before levying tariffs, a warning that could signal Beijing’s readiness to retaliate over a move it sees as giving in to demands from President Trump.
Mexico said last week it will raise tariffs on automobiles from China and other Asian countries to 50%.
Meanwhile, the Supreme Court said it would quickly review a high-stakes legal challenge to President Trump’s tariffs, setting up a resolution as early as this fall.
The high court put the case on track for oral arguments in early November. That puts the case on an unusually quick track to resolution.
US Treasury Secretary Scott Bessent has warned in recent days that the US would have to refund around “half” the tariff revenue it has collected if the Supreme Court rules the president overstepped his authority, which has been the determination of a federal appeals court and the Court of International Trade.
Trump has suggested that the US may have to “unwind” existing trade deals, including with the European Union, Japan, and South Korea, if the Supreme Court doesn’t uphold his tariffs.
The tariffs at stake are the sweeping “reciprocal,” country-specific duties Trump has outlined in various steps this year (which you can see in the graphic below). Those duties range from 10% to 50%. Trump has used a 1977 law known as “IEEPA” — the International Emergency Economic Powers Act — to justify imposing the tariffs.
