Donald Trump¡¯s tariff: China says talks possible but demands US to show sincerity & scrap ¡®wrong practices¡¯

For the first time since last month¡¯s sharp tariff escalation, China has publicly said it is evaluating the possibility of trade talks with the United States. While this is a shift from weeks of silence, Beijing has made it clear that dialogue will only begin if Washington shows ¡°sincerity¡± and reverses what it calls ¡°wrong practices.¡±

Messages from Washington, but no formal talks yet

China¡¯s Commerce Ministry announced that it has received messages from the US expressing a willingness to resume discussions. ¡°The US has recently sent messages to China through relevant parties, hoping to start talks with China. China is currently evaluating this,¡± the ministry said.

US President Donald Trump | Credit: X

There have been no official negotiations yet. China continues to assess the outreach and has reminded that while the ¡°door is open,¡± it remains fully prepared to ¡°fight to the end¡± if provoked.

Financial markets react to hint of dialogue

The announcement from Beijing helped lift market sentiment across Asia. S&P 500 futures reversed earlier losses. Regional equities turned positive, and the offshore yuan strengthened. The Australian dollar ¡ª often a proxy for China¡¯s economic health also extended gains.

Exemptions suggest strategy shift

Though formal talks haven¡¯t begun, Bloomberg reported that China has quietly prepared a list of US goods that could be exempted from retaliatory tariffs. This suggests a subtle attempt to reduce tensions without making obvious concessions.

At the same time, China has asked the US to show it is serious about negotiations. ¡°If the United States wants to talk, it should show its sincerity and be prepared to correct its wrong practices and cancel the unilateral tariffs,¡± the Commerce Ministry added.

A tariff war at historic highs

Tariffs between the two countries remain at record levels. The US is currently imposing a 145% tariff on most Chinese imports ¡ª the result of multiple hikes starting under President Donald Trump. The rate climbed from an initial 20% through stages of 34%, 84%, 104%, and finally 125%, before reaching the current 145%. Some US exemptions exist for sectors like semiconductors, pharmaceuticals, and key minerals.

China responded by raising its own tariffs to 125% on US goods effective April 12. Still, certain items have been discreetly exempted ¡ª revealing Beijing¡¯s attempt to balance retaliation with restraint.

Political shifts in Washington add complexity

President Trump announced that Secretary of State Marco Rubio who has been sanctioned by China will serve as interim national security adviser. Rubio is known for his strong positions on Taiwan and the South China Sea, both highly sensitive issues for Beijing.

Rubio told Fox News that China is seeking a ¡°short-term accommodation¡± and that the current duties are significantly hurting its economy. ¡°They want to meet, they want to talk,¡± he said.

Donald Trump with Xi Jinping | Credit: X

China¡¯s economy feels the strain

China¡¯s economic data reveals growing stress. Official manufacturing activity has slipped into its worst contraction since December 2023. New export orders have dropped to the lowest level since December 2022 with the biggest monthly fall since April 2022, when Shanghai was under lockdown.

No movement, but first step taken

Despite Beijing¡¯s tough tone, this public evaluation shows a significant shift. The Chinese Commerce Ministry says its position remains unchanged ¡ª talks can happen if the US corrects its course. But after weeks of silence, the mere possibility of negotiations may be the first sign of a new phase.

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