U.S. Treasury Secretary Scott Bessent said Wednesday that “there is an opportunity for a big deal here” on trade issues between the United States and China. A dozen states sued President Donald Trump and his administration Wednesday,

Mr Trump’s decision to consider backing down in his trade war comes as the harm it has caused America’s economy becomes clearer. Trade shipments between China and the US are collapsing and a critical survey of American businesses shows growth in activity slumped to a 16-month low.

Japan had long maintained deep economic ties with both China and the United States. Recent trade tensions may challenge that approach.