- China denied Trump’s claims of ongoing tariff negotiations, saying no talks are happening at all.
- Mixed signals from Trump and U.S. officials rattled markets, as fears of prolonged trade tension grew.
- Experts believe China is betting Trump can’t handle the economic fallout from his own tariff policies.
Just a day after President Donald Trump said the U.S. and China were in “active” talks to cool down their tariff war, Beijing came out swinging—denying any such thing. According to China’s Foreign Ministry, there are no negotiations happening right now. None. Zip.
“China and the U.S. have not engaged in any consultations or negotiations regarding tariffs, let alone reached an agreement,” said ministry spokesperson Guo Jiakun at a Thursday presser in Beijing. He didn’t mince words either, adding, “If it’s a fight, we will fight to the end.”
That’s… not exactly the kind of talk that hints at peace breaking out.
A Tariff Tussle with No Exit Plan?
Trump has been cranking tariffs up to 145% on Chinese goods, the steepest rates slapped on any nation so far. China fired back with its own heavy-duty 125% tariffs on U.S. imports. At this point, it’s starting to look more like a full-blown embargo than just a spat over trade policies.
And while markets briefly perked up after Trump hinted on Wednesday that tariffs might be coming down, things turned muddy real quick. Treasury Secretary Scott Bessent muddled the message further by saying “both sides are waiting to speak to the other.” So… maybe talks? Maybe not?
Trump, for his part, was busy scouting a spot on the White House lawn for a 100-foot flagpole when he declared, “Everybody wants to be a part of what we’re doing,” insisting that the U.S. and China are talking “every day.” Except, apparently, they’re not.
Reality Bites… Hard
Meanwhile, U.S. stocks took a hit as the mixed messaging unsettled investors. The Dow dipped, and the S&P 500 and Nasdaq followed suit. Asian markets ended the day on shaky legs, while Europe opened in the red.
Experts weren’t exactly buying Trump’s latest pivot either. Economist Lee Branstetter from Carnegie Mellon put it bluntly: “Talking about tariff reductions before winning any concessions from China looks like a climbdown.” He added, “They’ve now become much more evident to him”—“they” being the consequences of this whole tariff gambit.
And it’s not just the economists who are spooked.
Shipping giant Hapag-Lloyd said a whopping 30% of orders from China to the U.S. were canceled this week. The IMF also cut global growth forecasts, flagging the trade war as a top concern. It’s not just about taxes anymore—it’s starting to hit real-world supply chains and holiday season orders.
China Isn’t Budging… Yet
Don’t expect Beijing to come crawling to the negotiating table, though. Wu Xinbo, a professor and government adviser in China’s Foreign Ministry, said Trump’s public comments are mostly aimed at reassuring U.S. markets—not a reflection of actual talks.
“Trump just wants to send some reassuring signals to the domestic market, suggesting that ‘The Chinese are talking to us, don’t worry.’ But that’s not the case,” Wu said flatly.
That said, China’s not exactly cruising either. With exports slowing and the middle class feeling the pinch, they might need to talk… eventually. But they’re not in any rush. Xi Jinping doesn’t have to face reelection, after all.
And Branstetter summed it up with a mic-drop: “The Chinese have taken the measure of Donald Trump… and they’ve determined that he can’t afford the cost of dragging this out much longer.”
