The global business community is reeling from conflicting statements from the United States and China over trade negotiations, further deepening concerns about an ongoing trade war that threatens to derail global growth.
In an interview with TIME magazine and during a press briefing before leaving for Pope Francis’ funeral in Rome, US President Donald Trump said trade talks with Chinese President Xi Jinping were “underway” and that he had already secured “200 deals” that would be finalized in a few weeks.
However, this was strongly contradicted by China.
“China and the U.S. are NOT having any consultation or negotiation on tariffs,” stated the Chinese Embassy in the U.S., calling out the U.S. for “creating confusion.”
Mixed Signals on Global Stage
The contradiction has caused concern among economists, business leaders, and global markets. Trump’s team is actively engaged in a flurry of trade talks with international officials visiting Washington for the IMF and World Bank spring meetings.
While Treasury Secretary Scott Bessent claimed some progress, foreign finance ministers expressed caution.
“There’s a lot at stake—for jobs, growth, and living standards globally,” said Irish Finance Minister Paschal Donohoe.
Small Signs of De-escalation
Despite the lack of clarity, there are early hints of easing tensions. China has reportedly waived some tariffs on U.S.-made pharmaceuticals, and a list of 131 products—including vaccines, chemicals, and jet engines—is said to be under consideration for exemptions.
Meanwhile, Trump hinted at a near deal with Japan, seen as a potential model for other bilateral agreements. Talks with South Korea and Switzerland also showed initial signs of promise.
Tariffs Taking a Toll
Trump continues to push for high tariffs, claiming they will revive U.S. manufacturing, even if some remain in place a year from now.
However, experts warn of rising consumer costs and potential recession risks.
U.S. markets are still down 10% since Trump’s return to office in January. The dollar fell sharply, although Friday saw a slight rebound as markets hoped for resolution.
In addition to China, blanket tariffs of 10% have been slapped on steel, aluminum, autos, and even industries like pharmaceuticals and semiconductors, with drug prices in the U.S. expected to rise by up to 12.9%.
What Lies Ahead?
As global finance chiefs return home from the IMF meetings, the message is clear: uncertainty looms large. The world is watching to see whether Trump’s unpredictable tariff strategy leads to meaningful deals—or deeper economic fallout.
For now, the conflicting US-China statements remain a stark reminder of how delicate the global trade balance has become.
