Trump asserts trade talks with China are underway after Beijing denies any ongoing negotiations
US President Donald Trump dismissed China’s claims that there were no ongoing trade discussions between Beijing and Washington. Trump revealed that there were indeed meetings held that morning, although he did not disclose the details of the participants. This statement came in response to China’s denial of any talks with the US and their call for the removal of unilateral tariff measures to address trade issues.
Ministry of Commerce spokesperson He Yadong stated that there were currently no negotiations on the economy and trade between China and the US. He emphasized that any reports suggesting progress in bilateral talks should be disregarded. He further urged the US to lift all unilateral measures on China if they genuinely wanted to resolve the trade dispute.
Despite the conflicting statements, Trump and Treasury Secretary Scott Bessent hinted at a possible easing of tensions with China. The recent imposition of 145% tariffs on Chinese goods by the White House was met with retaliatory duties from Beijing and increased restrictions on critical minerals exports to the US.
Chinese Foreign Ministry spokesperson Guo Jiakun also reiterated that there were no ongoing talks with the US, emphasizing China’s willingness to engage in negotiations only if treated as an equal partner.
Economists like Yue Su from The Economist Intelligence Unit highlighted China’s desire to deescalate the trade war, given its detrimental impact on both economies. However, the inconsistent policies of the Trump administration have led China to prioritize its own interests. This shift is evident in their demand for the US to revoke unilateral tariffs.
In response to the escalating tensions, several Wall Street banks have revised their China GDP outlook downward. The Commerce Ministry in China has been actively promoting alternative export markets for companies affected by the trade dispute.
Looking ahead, Jianwei Xu, a senior economist at Natixis, suggested that meaningful negotiations would likely require the US to reduce tariffs to previous levels. However, this presents a dilemma for the Trump administration, as it raises questions about the purpose of the confrontation if tariffs are ultimately lowered.
China remains the largest trading partner of the US on a single-country basis, but Southeast Asia has surpassed the European Union to become China’s largest trading partner regionally in recent years.
In conclusion, the trade tensions between the US and China continue to escalate, with both sides holding firm on their positions. The outcome of future negotiations remains uncertain, as both countries navigate the complex landscape of global trade relations.
