Just weeks ago, markets rejoiced as a de-facto trade embargo between the world’s two largest economies was called off — with US President Donald Trump declaring a “total reset” with China. Yet, the reality of that reset is starting to look awfully familiar.

China trade talks have stalled as Trump faces legal setbacks over his tariff strategy. Follow Newsweek's live blog.

Trade talks between the US and China are "a bit stalled", the US Treasury Secretary Scott Bessent has said. His comment comes less than three weeks after a temporary trade truce was agreed between the world's two largest economies,

US President Donald Trump signalled renewed trade tensions with China, arguing that China had "violated" a deal to de-escalate tariffs, at a time when both sides appeared deadlocked in negotiations.

China’s factory activity contracted in May although the decline slowed from April as the country reached a deal with the U.S. to slash President Donald Trump’s sky-high tariffs