The Chinese government rejected on Thursday President Donald Trump’s statement that the United States and China engage in active negotiations to settle their trade conflict which risks global economic stability. Chinese Foreign Ministry spokesperson Guo Jiakun denied reports of active negotiations between the U.S. and China as he stated the two countries have not had any tariff discussions or reached a trade agreement. The Chinese government displayed willingness to discuss matters with the U.S. yet emphasized its determination to defend itself in any conflict saying “If it’s a fight, we will fight to the end.”
The United States has imposed its highest trade tariffs of 145% on China because it claims the nation practices unfair trade methods. The Chinese government imposed 125% tariffs on U.S. imports which effectively established a trade ban. Market instability has increased due to rising tensions which now creates a heightened risk of worldwide economic downturn. The International Monetary Fund has lowered its growth projections for the U.S. along with China and multiple other countries because U.S. tariffs have caused economic disruption. Hapag-Lloyd the German shipping company documented a 30% cancellation rate of their U.S.-bound Chinese shipments for the upcoming holiday season.
The Trump administration continues to send unclear signals that have contributed to the existing uncertainty. The U.S. may lower its tariffs to very low levels according to Trump who added that these rates remain far from the current 145% but Treasury Secretary Scott Bessent confirmed both countries remain ready to start negotiations. According to Bessent a reduction of existing tariffs would happen between the parties because current levels are not sustainable. The White House press secretary Karoline Leavitt rejected reports about a softening of the U.S. stance because the administration would not make any unilateral tariff reductions. The administration holds ongoing low-level talks but Cabinet-level discussions remain absent.
The opposing messages from Trump’s administration led to decreased U.S. stock performance during Wednesday followed by additional market losses during Thursday’s early trading. The Asian market closed with mixed results while European indexes demonstrated downward trends. According to Carnegie Mellon economist Lee Branstetter Trump’s claim of tariff reduction without Chinese concessions demonstrates an incorrect assessment of the situation. According to him the president did not fully understand how his tariffs would affect businesses and consumers across the United States.
China maintains its defiance even though its export sector shows signs of slowing down. Wu Xinbo from the Chinese government labeled Trump’s statements as political calming tactics because he confirmed there are no substantial negotiations happening between the countries. Chinese leadership faces no electoral pressures while maintaining its stance of waiting out Trump since they lack any need to compromise. Economist Gary Ng highlighted that Chinese middle class acceptance of reduced living standards proves difficult yet Branstetter believes Beijing thinks Trump will end high tariffs first because they become too costly to maintain politically and economically.
