HONG KONG — A growing disagreement has emerged between the U.S. and China over the status of trade talks, with conflicting statements fueling uncertainty regarding tariff discussions. President Donald Trump asserted on Wednesday that the U.S. and China are “actively” engaged in talks to address their ongoing trade dispute. However, China’s Ministry of Foreign Affairs refuted this claim on Thursday, stating that no consultations or negotiations on tariffs have taken place, and describing such reports as inaccurate.
The spokesperson, Guo Jiakun, added that while China remains open to negotiations, the country is prepared to continue its stance in the trade conflict if necessary. He emphasized, “If it’s a fight, we will fight to the end.”
Trump has imposed a 145% tariff on Chinese goods, the highest of any country. In response, China has levied a 125% tariff on U.S. products, resulting in a situation that some analysts describe as a de facto trade embargo between the two largest global economies. These tariff levels have raised concerns about the potential for a global recession, and markets have been volatile as a result.
Despite these tensions, there appeared to be a brief moment of optimism on Wednesday when the Trump administration indicated a willingness to consider reducing tariffs. However, the messaging from the U.S. government has been inconsistent. Treasury Secretary Scott Bessent suggested that both sides were awaiting further talks, while Trump reiterated that the U.S. and China are in constant communication on trade issues.
A senior administration official later clarified that discussions on tariffs are ongoing at a lower level, without direct involvement from Cabinet members.
The mixed statements have had a notable effect on financial markets. U.S. stocks experienced fluctuations, and global markets were similarly impacted, with European indexes seeing declines.
Experts have noted that tariff reductions would likely signal recognition of the economic pressures that these tariffs have imposed on businesses and consumers in both countries. Lee Branstetter, an economist at Carnegie Mellon University, stated that the discussion about lowering tariffs without securing any significant concessions from China could be seen as a shift in U.S. policy, potentially reflecting reconsideration of the economic consequences of the trade war.
The economic effects of the standoff are becoming more evident. The International Monetary Fund recently revised down its growth projections for the U.S., China, and many other countries, citing the impact of the ongoing trade conflict. U.S. businesses are also beginning to express concern about potential shortages in preparation for the upcoming holiday season, with some companies reporting cancellations of shipments due to the trade tensions.
Despite the growing economic pressures, China has shown little willingness to engage in direct negotiations, instead focusing on protecting its own interests, including addressing its slowing export-driven economy. China has indicated that any further discussions would require U.S. concessions, and experts suggest that domestic economic factors may push China to reassess its position.
As the situation develops, the potential for resolution remains uncertain, with both sides maintaining firm stances on their trade policies.
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