China's consumer prices fell for the second straight month in March while producer deflation persisted, as caution grows over the economic outlook amid mounting tariff risks.

“Xi will not be forced into a call,” said Sun Yun, director of the China program at the Washington-based think tank Stimson Center. Only once in recent history, she noted, has a Chinese leader phoned the United States without invitation — after the 9/11 terrorist attacks. The trade tensions, if unchecked, could spill into other domains, she warned.

China’s latest move: an additional 50 percent tariff on U.S. goods. Neither side wants to look weak by backing down, but a collapse of their trade ties could have profound consequences.

A Chinese state newspaper suggested it’s time to ease monetary policy to support the economy as rising trade tensions with the US threaten its growth outlook.

U.S. Secretary of Defense Pete Hegseth has again put China at the center of U.S. priorities in the Western Hemisphere, one day after calling the world power a threat to the Panama Canal.

The heavy U.S. tariffs on other Asian countries have made China a more appealing option for companies scared to make a hasty decision amid upheaval in global trade.

President Donald Trump announced a tariff pause for most countries. Markets surge: Financial markets jumped after the announcement and after tariffs had sparked a bond sell-off earlier in the day. The tariff pause is set for 90 days.

China is willing to work with its trading partners, including ASEAN countries, to strengthen communication and coordination, its commerce minister said in talks with Malaysian Trade Minister Zafrul Aziz.