China Says U.S. Trade Talks Are Not Ongoing Despite Trump's Claims

What Happened?

China announced on Thursday that there were no ongoing tariff discussions with the U.S., despite indications by President Donald Trump that discussions were active.

Ministry of Commerce spokesperson, He Yadong, told reporters, 'At present, there are absolutely no negotiations on the economy and trade between China and the U.S.'

He added that 'all sayings' regarding progress on bilateral talks should be dismissed.

Instead, China has called for all 'unilateral' U.S. tariffs to be canceled if the U.S. truly wants to de-escalate its trade war with Beijing.

Foreign Ministry spokesperson, Guo Jiakun, reportedly referred to reports of China and the U.S. currently holding consultations or tariff negotiations as 'false news.'

The assertions are the opposite of remarks made by the White House this week that inferred some trade tensions with Beijing were easing.

Why it Matters

The Trump administration told reporters, Wednesday, it was considering plans to reduce Chinese tariffs to reach a 'fair deal' on trade.

President Trump claimed the U.S. was actively talking to China leaders to reach an agreement on tariffs.

The softer tone with China comes after the two sides have rattled the global markets, increasing the risks of a 2025 recession.

Trump’s unpredictable moves have caused the International Monetary Fund (IMF) to lower its 2025 projections for U.S. growth to 1.8%, compared to a 2.8% expansion in 2024.

The effective tariff rate for the U.S. surged past levels reached during the Great Depression, according to IMF.

Counter-responses significantly spiked the global rate.

Although Trump said he's not seeking to play 'hardball' with Beijing, he suggested that imposed tariffs will eventually 'come down substantially.'

Treasury Secretary, Scott Bessent, supported these efforts after stating President Trump hasn’t offered to take down U.S. tariffs on China on a unilateral basis.

The U.S. is involved in trade negotiations with about 100 countries, according to Bessent.

Trump suspended universal tariffs for 90 days and maintained a 10% blanket duty on almost all U.S. imports.

Automotives, steel, and aluminum levies of 25% were also kept in place.

How it Affects You

Consumer confidence in the U.S. has significantly lowered as Trump's latest actions have been viewed to reflect those concerns.

China has hiked its levies to 125% on U.S. imports, while the U.S. holds a baseline rate of 145% on Chinese imports.

The U.S. aims to potentially slash China tariffs to 50%-65%, according to reports.

It's a potential attempt to bring the world’s two largest economies back on track as both sides want to see the trade war de-escalate, as it hurts both economies.