A drone view shows containers at the terminals at the port in Kwai Chung in Hong Kong, China, April 3, 2025. REUTERS/Tyrone Siu/File Photo
Conflicting Signals Emerge Over U.S.-China Trade Talks Amid Global Economic Concerns
April 25, 2025 — Washington, D.C. / Beijing
Trump Claims Talks Underway, China Issues Denial
U.S. President Donald Trump stated in an interview published Friday that trade negotiations with China were ongoing. He further claimed that Chinese President Xi Jinping had personally called him, a remark he reiterated to reporters before departing the White House en route to Rome for Pope Francis’s funeral.
However, the Chinese government swiftly refuted the claim. In a statement posted by the Chinese Embassy in Washington, the Foreign Ministry declared, “China and the U.S. are NOT having any consultation or negotiation on #tariffs,” and urged the United States to “stop creating confusion.”
Later aboard Air Force One, Trump said it would be a “win” if China opened its markets to U.S. products and suggested that the pressure from tariffs could bring about that outcome. “Free up China. You know, let us go in and work China,” he said, while casting doubt on whether he would formally pursue such a concession.
Tariff Policy Sparks Global Uncertainty
The contrasting messages from Washington and Beijing have heightened confusion over the trajectory of the U.S.-China trade dispute. Trump’s broader tariff agenda—initiated shortly after returning to the presidency in January—has unsettled global markets and left numerous governments working to negotiate exemptions from U.S. trade barriers.
As foreign leaders gathered in Washington this week for the International Monetary Fund (IMF) and World Bank spring meetings, Trump’s team engaged in a rapid series of trade discussions. Treasury Secretary Scott Bessent pointed to what he called swift progress, though international counterparts expressed caution.
“I’m walking away from these meetings with a clear sense of everything that is at stake,” said Irish Finance Minister Paschal Donohoe. “We need to leave no stone unturned… to see how we can reduce that uncertainty.”
Initial Signs of De-escalation Emerge
Despite the absence of formal confirmation on trade talks, some indications suggested a modest easing of tensions. Chinese authorities reportedly exempted certain U.S.-made pharmaceuticals from the 125% retaliatory tariffs imposed earlier this month, in response to Trump’s 145% duties on Chinese imports.
A circulated list of 131 product categories under potential review for exemption included items such as vaccines, chemicals, and jet engines, though Reuters could not verify the document. Beijing has not publicly commented on the matter.
U.S. officials, including Bessent, have signaled interest in de-escalation, acknowledging that the current standoff is untenable for both sides.
Bilateral Negotiations Expand Beyond China
In parallel to efforts involving China, President Trump has also intensified bilateral negotiations with other trading partners. He told reporters that a trade deal with Japan was near completion, describing it as a potential model for future agreements. Analysts expect Trump and Japanese Prime Minister Shigeru Ishiba to announce the agreement at the G7 summit in June.
Trump also claimed in his interview with TIME magazine that his administration had reached “200 deals” expected to conclude within a few weeks, though he did not disclose details. He stated that maintaining tariffs at 20% to 50% over the next year would constitute a “total victory.”
Domestic Impact and Economic Risks
President Trump has defended his tariff policies as essential for revitalizing American manufacturing and countering global competition. However, economists widely warn of the negative domestic effects. Increased tariffs could raise prices for U.S. consumers and elevate the risk of a recession.
Market reaction has been mixed. U.S. stocks posted modest weekly gains, though major indexes remain down roughly 10% since January. Meanwhile, the U.S. dollar—after weeks of decline—recorded its first weekly rise in over a month. European and Asian markets have continued to rebound, bolstered by hopes of a U.S.-China compromise.
Tariffs Dominate IMF Discussions
Trump’s tariffs were a central issue at the IMF meetings, with finance ministers seeking bilateral talks with Treasury Secretary Bessent. Discussions with South Korea were described as “very successful,” while Switzerland also reported satisfaction with its initial engagement. Talks with Japan are ongoing.
The U.S. Trade Office emphasized that consultations with global partners are continuous, though it stressed that President Trump will ultimately determine the course of future agreements.
IMF Managing Director Kristalina Georgieva warned earlier this week that a failure to resolve the trade tensions could significantly slow global economic growth.
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