China has called on the United States to abandon all independent tariffs and has denied any ongoing discussions aimed at securing a trade agreement, even after President Trump softened his public criticism of Beijing.
At a routine press briefing in Beijing on Thursday, Commerce Ministry spokesperson He Yadong urged Washington to heed both international and domestic voices advocating for a resolution. “If the U.S. genuinely seeks a solution, it must fully eliminate every unilateral tariff it has imposed on China,” He asserted.
He categorically denied rumors of breakthroughs in bilateral dialogue, labeling them “completely unfounded,” and challenged the U.S. to “demonstrate genuine goodwill” if it truly intends to negotiate a deal.
His comments underscore that President Trump’s recent indication of possible tariff reductions—currently averaging near 145% on many Chinese imports—falls short of China’s expectations for de-escalation. Trump remarked Wednesday that “everything’s active” regarding engagement with Beijing and predicted that China would “be fine” once discussions progressed.
Despite repeated attempts by Trump to speak directly with President Xi Jinping since taking office, China has held back. Beijing reportedly demands several concrete gestures from Washington before engaging in formal trade talks, including greater diplomatic respect and the designation of a clear U.S. point person for negotiations.
Additional prerequisites include consistency in U.S. policy and a readiness to address China’s grievances over American sanctions and Taiwan—an island Beijing considers a renegade province, shouldering the right to unify by force.
China has approached Trump’s unpredictable tariff strategy with measured responses, branding the high levies “ineffective.” Beijing has also cautioned third countries against forming agreements with the U.S. that could undermine China’s interests.
The trade conflict has rippled into defense relations: On Thursday, China’s Defense Ministry accused “certain U.S. officials” of harboring biased views that impede military-to-military exchanges between the two nations.
Domestic Economic Measures on Hold
Attention now turns to Beijing’s potential domestic stimulus to cushion its export-driven growth—responsible for roughly 40% of first-quarter expansion—from punitive duties. Observers expect hints of fresh policy support at this week’s Politburo meeting, traditionally devoted to economic planning.
Larry Hu, chief China economist at Macquarie Group, cautioned that it remains “premature” for China to unleash comprehensive stimulus, noting that reversing fiscal measures is more complex than rolling back tariffs.
With China’s GDP growing 5.4% in the first quarter—surpassing its approximate 5% target for 2025—authorities may choose to defer major interventions until necessary to safeguard their annual growth objective.
Global Trust at Stake
China’s commerce and defense ministry statements followed remarks by People’s Bank Governor Pan Gongsheng at a G20 gathering in Washington. Pan warned that mounting trade frictions threaten confidence in the global financial system, calling for enhanced cooperation to avert a cycle of “high friction, low trust.”
Pan, leading China’s delegation at this week’s IMF-World Bank meetings, stressed that “there are no winners in trade wars,” reaffirming China’s commitment to openness, free trade, and the multilateral trading framework.
Despite the first in-person meetings between Chinese economic officials and the U.S. administration since the tariff hikes, neither side has formalized talks, even as Trump’s recent tone softening suggests potential openness to negotiation.
