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U.S. Quietly Initiates Tariff Discussions with China Amid Trade Tensions

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U.S. Quietly Initiates Tariff Discussions with China Amid Trade Tensions

by Daisy D.
05/02/2025
in Tariffs & Duties

by supplychainreport

The U.S. administration has discreetly reached out to Chinese officials to explore the possibility of resuming tariff negotiations, according to reports from Chinese state-run media. Despite public remarks suggesting that China must initiate any dialogue, the move signals a behind-the-scenes effort to ease trade tensions.

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During a Cabinet meeting on Wednesday, President Donald Trump pointed to declining cargo volumes as a sign that China may be compelled to engage in discussions. He also expressed confidence that a conversation with Chinese President Xi Jinping could take place.

However, a post from Yuyuantantian, a Weibo account linked to China Central Television and known to reflect Beijing’s trade perspectives, indicated that China expects the U.S. to implement “meaningful measures” before re-engaging. The message noted that Washington appears more eager to restart talks, citing increasing pressure domestically.

Earlier this week, Reuters reported that China had quietly developed a list of U.S. goods exempt from its 125% tariffs. The list, which has been gradually expanding, includes items such as U.S. ethane, semiconductor components, and pharmaceutical products. The measure aims to de-escalate trade tensions while maintaining a firm public position.

President Trump defended the existing 145% tariffs on Chinese imports, asserting that the economic impact was justified and manageable. While acknowledging that there could be some supply shortages and price increases—particularly in consumer goods—he characterized these outcomes as minor inconveniences.

At the same time, internal administration efforts are reportedly evaluating phased tariff reductions and a possible re-initiation of formal trade discussions. The sharp decline in cargo volumes, estimated at 60%, has sparked concerns about potential job losses across sectors such as trucking, logistics, and retail.

In a separate development, the U.S. has provided partial tariff relief to the automotive sector. A new executive order exempts companies already paying tariffs on imported vehicles from additional duties, including those on steel. The order also includes adjustments to duties on foreign auto parts. The changes follow industry lobbying, with automakers warning of significant price hikes and disruptions to consumer markets.

Elsewhere, Commerce Secretary Howard Lutnick stated on Tuesday that the U.S. is nearing a trade agreement with at least one unidentified country, while another official suggested that talks with India are close to conclusion.

These developments underscore ongoing adjustments in U.S. trade policy, with global implications for supply chains and economic relations.

#TradePolicy #SupplyChainNews #GlobalCommerce #TariffTalks #NewsUpdate

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