New projections released Tuesday by the International Monetary Fund forecast tariffs will hurt global economic growth, and that the U.S. economy will take a bigger hit than other large countries. The IMF now projects global growth to drop 2.8% in 2025 and 3% in 2026 -- down from 3.3% for both years from its January 2025 report.

Economic risks are growing as the two sides appear to disagree about whether they are even engaged in tariff negotiations.

The Treasury secretary said that the President Trump and Xi Jinping of China have a good relationship but that he was not aware of a call, which Mr. Trump had alluded to last week.