US President Donald Trump said Thursday that the US and China are undergoing trade talks after Beijing denied negotiations over tariffs.
“They held a meeting this morning,” Trump told reporters during a meeting with the Norwegian Prime Minister at the White House. However, he refused to identify the Chinese representatives involved, saying, “It doesn’t matter who they are. I may reveal that later, but I have a meeting this morning and we’re meeting with China.”
That day, his Yadong, a spokesman for the Chinese Ministry of Commerce, said there are currently no trade negotiations between China and the US. “China has been wary of some recent reports in foreign media,” he said at a press conference. “As the head of foreign trade and economic relations, I would like to emphasize that there is no trade negotiations currently occurring between China and the US. The claims regarding the progress of China-US trade talks are purely speculative and have no practical basis.”
On Tuesday, Trump had announced plans to “reduce plans to effectively cut plans to reduce China’s tariffs, but it won’t go to zero.” Currently, the US is imposeting 145% import tariffs on Chinese goods, while China is retaliating with 125% tariffs on US goods. Beijing is also implementing non-tariff measures, including restrictions on rare earth exports to the United States and halting the purchase of aircraft from Boeing. The Wall Street Journal reported Wednesday that the Trump administration is considering reducing China’s tariffs from 50% to 65%.
When asked about Trump’s comments on potential tariff cuts, he said: “If the US really wants to solve the problem, it should listen to the reasonable voices of the international community and various domestic sectors, completely removing all unilateral tariff measures against China and trying to resolve differences through equal dialogue.”
Later on Thursday, Trump posted about the true society. “Boeing should be in debt to China for not taking the beautifully completed plane that China has promised to buy. This is a small example of what China has been to America for years…” he writes. Trump imposed a 20% tariff on China in February and a 25% on Canada and Mexico due to fentanyl trafficking.
Global stocks rise amid signs of escalation in trade war
Nonetheless, Trump’s apparent reversal of China’s tariffs and his soft stance towards Federal Reserve Chairman Jerome Powell led a rally in the global stock market that rose on Thursday’s fourth consecutive trading day. Risk sentiment recovered cautiously this week, with all major global indexes appearing to be poised to close the week with positive notes.
On Wall Street, technology stocks led the rebounds during the ongoing corporate revenue season. The S&P 500 rose 2% on Thursday, reaching its highest level since April 3rd. A week later, he allowed 90-day tariff suspension for all countries except China.
The European market has shown particular resilience, with both the Euro Stoxx 600 and the German DAX earning profits for the second consecutive week. DAX is currently only 6% below its all-time high in March.
Stocks from all over Asia gathered on Friday. Japan’s Nikkei 225 rose more than 2%, while Korea’s Cospi won over 1%. US Treasury Secretary Scott Bescent is reportedly in discussions with both countries. Meanwhile, Hong Kong’s Hangsen index rose 1.5%, recovering most of its losses since early April. The People’s Bank of China has reiterated its commitment to maintain a moderately lax monetary policy to support economic growth in the face of trade tensions.
