Trump, China's trade conflict statement on trade negotiations, causing chaos – State
U.S. President Donald Trump asserted in an interview on Friday that tariff negotiations with China were underway, but Beijing denied that any negotiations were underway, the latest in a series of conflicting signals about the progress of the trade war to mitigate the threat of the trade war threatening to get involved in the global trade war.
Trump told Time that talks were underway and Chinese President Xi Jinping called him, a statement he repeated to reporters when reporters who left the White House on Friday morning attended Pope Francis' funeral.
China fired back in a statement from the U.S. by the Chinese Embassy in a Foreign Ministry issued by the U.S.: “China and the U.S. have not conducted any consultations or negotiations on #TARIFF.”
Speaking to reporters on Air Force One late Friday, Trump said it would be a victory if China will open markets for U.S. products and tariffs can achieve that.
“Release China. You know, let's go into China to work.” “That's great. That's going to be a huge win, but I'm not even sure I'll ask for it because they don't want to open it.”
Back and forth adds substantial uncertainty around Trump’s unstable tariff policies, not only around China, but also scrambles to reach its own deals with dozens of countries to ease the burden of the huge import tax he has been paying since returning to the White House in January.
His team of negotiators is in lightning-fire trade talks with foreign officials flocking to Washington this week to attend spring meetings of the IMF and the World Bank Group.
But while Trump officials, including Treasury Secretary Scott Bessent, touted signs of rapid progress, many of their peers are more cautious, while the head of the IMF is carrying new urgency to reduce the risks posed by tariffs.
“I am getting rid of these meetings and having a clear understanding of all the risks facing everything and the risk for working, growing, the standard of living around the world,” Irish Finance Minister Paschal Donohoe told Reuters. “The meetings here remind me of why we need to not endure any stone in the next few weeks and months to see how we can reduce this uncertainty.”
While there is clarity on whether the deal is truly conquered to avoid steeper tariffs, there are still some signs of downgrade.
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Some U.S. imported tariffs can be avoided as commercial organizations say they allow some U.S.-made drugs to enter the country without paying the 125% duty imposed by Beijing earlier this month, as Beijing has allowed some U.S.-made drugs to enter the country in response to Trump's 145% tariff on Chinese imports.
Additionally, among some businesses and trading groups, a list of 131 product categories that are said to be considering exemptions. Reuters has been unable to verify the list, including vaccines, chemicals and jet engines, and China has not yet communicated publicly on the issue.
The Trump administration also said in recent days it is seeking to weaken tensions with China, and Best said both sides believe the current game state is untenable.
Meanwhile, Trump told White House reporters that his deal with Japan is very close. Analysts see it as a “test case” of other bilateral trade agreements, although negotiations can be difficult. Some expect Prime Ministers Shigeru Ishiba and Trump to announce a convention when they meet at Canada's G7 summit in June.
Trump also told Time that his “200 deals” would be completed within three to four weeks, although he refused to provide specific details. He said if the tariffs from now remained at 20% to 50%, he would consider it a “all victory.”
Trump believes that his trade barriers will restore the U.S. manufacturing industry that is hollowed out by global competition.
But economists have broadly warned that they will bring higher prices to U.S. consumers and increase the risk of recession.
U.S. stocks have gained a certain weekly, although their shares have fallen by about 10% since Trump returned to the office in January, lagging behind the index in other countries while the dollar has fallen as the dollar has fallen at an unprecedented rate.
European and Asian stocks earned their second straight week on Friday, while the dollar rose weekly for more than a month as investors felt comfortable with signs of the U.S. and China preparing to exit the trade war. Wall Street's main index rose slightly as investors struggled with clarity on U.S.-China trade.
In addition to the tariffs in specific countries, Trump also imposed a 10% blanket tariff on all other imports of steel, aluminum and cars and higher responsibilities.
He also proposed other industry-specific taxes on drugs and semiconductors. According to industry estimates, this could lead to a rise in drug prices in the United States by as much as 12.9%.
Trump's tariffs led the discussion at the IMF meeting this week, with the Treasury Secretary leaning in a one-on-one meeting with the U.S. Treasury Secretary.
Bessent described preliminary negotiations with South Korea as a “very successful” Thursday, which Seoul calls a “good start.” Further discussions are planned next week.
Switzerland also said it was satisfied with its first meeting with Bessent. The U.S. Trade Office said it was “continuous interaction” with Japan and other countries, but Trump will eventually decide whether they will do it.
Although IMF head Kristalina Georgieva urged warning earlier this week that they could lead to a serious decline in global growth.
