The dollar barely recouped its heavy losses on Tuesday as investors were no clearer on whether a de-escalation of the Sino-U.S. trade war was underway, with Treasury Secretary Scott Bessent suggesting the onus was on China to start negotiations.

Beijing appears to be bedding in for a protracted battle with the US over tariffs. The Chinese government laid out policies Monday to aid its exporters affected by the trade war, including loan support for troubled firms and measures to further boost domestic consumption.

U.S. Treasury Secretary Scott Bessent announced in interviews with CNBC and Fox News on Monday that trade agreements with certain countries will be finalized soon. He also mentioned that China is signaling a willingness to negotiate on tariffs,