The economic effects of new trade wars could be hard for the United States to dodge even if talks yield new deals soon.

U.S. Treasury Secretary Scott Bessent on Sunday did not back President Donald Trump's assertion that tariff talks with China were under way and said he did not know if the U.S. president had talked to Chinese President Xi Jinping.

Members of Donald Trump's cabinet gave conflicting messages on Sunday about whether negotiations with China over tariffs are taking place, as the Republican president has asserted. The Trump administration signaled openness last week to de-escalating a trade war between the world's two largest economies that has raised fears of recession.

While investors will closely watch reports in the coming week on jobs, inflation and gross domestic product, the data will be backward-looking amid heightened concern that President Donald Trump’s sweeping tariffs announced on April 2 may inflict future damage on the economy.

President Donald Trump is under pressure to deliver trade deals before the 90-day tariff pause ends and rattles the market again.