"The EU and China are broadly on a colliding trajectory in terms of their trade and industrial policy concerns," he told CNBC. Bones of contention include the challenge of China's overcapacity and trade diversion to Europe, Stec, who is also head of the Mercator Institute's Brussels office, explained.

A study from UC San Diego's School of Global Policy and Strategy found that a trade war with other countries, particularly China, could torpedo one of the United States' most important exporting industries — higher education.

The total value of goods exchanged between the US and China plunged below 2020's pandemic era low in the second month of the new tariff war between two nations.

Not everyone is worried. “But to us and from a market perspective, the tariff debate has been thoroughly pushed to the background with the U.S.-China trade pause,” say strategists at HSBC led by Max Kettner, chief multi-asset strategist at HSBC. “Similarly, recent price action is showing smaller sensitivity of risk assets to tariff headlines.”

U.S. Secretary of State Marco Rubio met his Japanese and Philippine counterparts in a meeting Thursday on the sidelines of the Association of Southeast Asian Nations’ annual ministerial meetings in Malaysia. The U.S., Japan and the Philippines have been building a trilateral bloc to broaden security and economic cooperation.

Australian Prime Minister Anthony Albanese leaves for Shanghai on Saturday on an official visit to China where regional security tensions and efforts to grow economic ties are likely to dominate talks.

The U.S. gets almost all of its fireworks from China, and the industry is warning that tariffs on Chinese imports could limit supply and send prices soaring.

China is expanding its visa-free entry to 75 countries as part of a broader campaign to boost inbound tourism.