China announced on Wednesday that it remains open to trade negotiations with the United States, following comments by U.S. President Donald Trump suggesting that the steep tariffs currently in place could be reduced once an agreement is reached.
Since the beginning of Trump’s second term in January, a heated trade conflict has erupted between Washington and Beijing. U.S. tariffs on Chinese goods have climbed to as high as 145%, initially imposed due to China’s alleged involvement in fentanyl trafficking and later expanded over what the U.S. considers unfair trade practices.
In retaliation, China has introduced counter-tariffs of up to 125% on American products, escalating tensions between the world’s two largest economies. The ongoing dispute has unsettled global markets and raised fears of an impending economic downturn.
On Tuesday, Trump acknowledged that current tariffs were “very high,” but assured they would be “substantially lowered” if a deal is finalized. Responding to this, Chinese Foreign Ministry spokesperson Guo Jiakun reiterated China’s stance, emphasizing that trade wars produce no winners.
“We’re not seeking conflict, but we’re not afraid of it either,” Guo said at a press conference, stressing that China is prepared to “fight to the end” if necessary. He added that while China is willing to talk, applying “extreme pressure” while negotiating is not a productive approach.
Fed Chief to Stay, Says Trump
In a separate development, Trump said he does not plan to dismiss Federal Reserve Chairman Jerome Powell, despite previous criticisms. His recent comments had sparked speculation about Powell’s future, unsettling investors.
“I have no intention of firing him,” Trump stated, while expressing a desire for the Fed to cut interest rates, calling it an ideal time to do so. “If he doesn’t, is it the end? No,” he added.
Trump also hinted that while Chinese tariffs will decrease, they won’t be eliminated entirely. “They won’t be anywhere near that number,” he said, “but it won’t be zero either.” He insisted that a deal is inevitable, arguing that without one, China will lose access to the U.S. market.
Markets React to Signs of Progress
Treasury Secretary Scott Bessent, speaking at a closed-door JPMorgan Chase event, described current tariffs as a form of reciprocal embargo, but said he expects tensions to ease soon. His remarks lifted Wall Street markets and triggered a rally across Asian exchanges.
Bessent acknowledged ongoing challenges in U.S.-China trade relations, but emphasized the importance of fair trade and rebalancing China’s economy. He dismissed any intention of economic decoupling but noted that shipping volumes between the two countries have dropped due to the conflict.
White House Press Secretary Karoline Leavitt echoed a similar optimism, telling reporters the administration is making headway toward a deal. “The ball is moving in the right direction,” she said.
As global economic leaders gather in Washington for the IMF and World Bank Spring Meetings, attention remains fixed on developments in U.S.-China trade talks.
Meanwhile, Chinese Foreign Minister Wang Yi urged the UK and EU to collaborate with Beijing in defending global trade norms. In Japan, local media reported that a second visit to Washington by tariffs envoy Ryosei Akazawa is being considered, with Tokyo potentially offering concessions to ease tensions.
Japan’s Sumitomo Rubber, which owns the Dunlop brand, announced it would raise tire prices in the U.S. and Canada by up to 25% starting in May, citing the impact of tariffs.
