As Trump’s trade war locks the world’s two largest economies on a collision course, America’s unnerved allies and partners are cozying up with China to hedge their bets.

Treasury Secretary Scott Bessent said “all aspects” of the US government are in contact with China but that it’s up to Beijing to take the first step in de-escalating the tariff fight with the US due to the imbalance of trade between the two nations.

Luxury sportscar maker Porsche AG on Tuesday said its operating margin fell to 8.6% in the first quarter, below analyst estimates, hit by weaker demand in China as well as U.S. import tariffs.

Porsche AG expects its profit margin to slip into single digits this year, with the luxury-car maker warning about US tariffs and higher costs from weak electric-vehicle adoption.

Porsche slashed its financial outlook, as the sports-car maker struggled in China and said tariffs are hurting its business in the U.S.