In fact, on the very morning of his announcement, former President Donald Trump revealed that the United States had just concluded another meeting with Chinese officials. This directly counters China’s narrative that no trade talks were held. The contradictory news further muddies the waters in the growing trade war between the two countries. These tensions have already led to widespread volatility in global markets.
In a press briefing, Trump announced, “They just had a meeting this morning. He did little to enlighten reporters on the identities of those people leading discussions of possible alternatives. His statements come in stark opposition to China’s assertions over the past week. What they made clear is that there has been zero consultation with Washington on any of these trade negotiations. Chinese officials, including spokesperson Guo Jiakun, reiterated this stance, asserting, “China and the United States have not conducted consultations or negotiations on tariffs, let alone reached an agreement.”
That continued U.S.-China narrative misalignment serves to underscore the prevailing confusion over the state of their economic relationship. The protracted uncertainty continues to prolong economic hardship for both nations. U.S. businesses are getting crushed by the soaring import costs due to the trade war, and Chinese exporters are being besieged by a collapse in demand from U.S. consumers.
Scott Bessent, a preeminent market strategist, noted that for the deal to work both countries need to bring down their sky-high tariffs. Only then can serious and productive trade negotiations start. He also insisted that de-escalation is a prerequisite for getting the trading relationship between the world’s two largest economies back on a more balanced track.
Most recently, China has reiterated its call for the unilateral tariffs to go to help mitigate this vicious and unnecessary war. Trump’s recent language suggests that under Tariff Man, the U.S. will further double down on the Trump Administration’s failed tariff strategy. This makes any future renegotiation far trickier.
Both countries find themselves in choppy seas. At the same time, contradictory signals from the U.S. and China confound economic predictability. Things are still developing. Both countries are passionately arguing the other’s negligence, and both are clearly feeling the economic impact of their strained relations.