Trade tensions between the United States and China continue to rise as both countries exchange firm positions over tariffs. On Thursday, China rejected the latest US proposals and demanded a complete removal of all tariffs, denying that any progress had been made in the ongoing trade talks.
China’s Commerce Ministry spokesperson He Yadong said the US must fully remove its unilateral tariffs if it truly wants to resolve the problem. He also dismissed reports of active negotiations as groundless.
China Warns of Global Economic Risks
China’s central bank governor Pan Gongsheng issued a warning about rising global risks. He said ongoing international tensions could lead to high friction and low trust between nations. He called for stronger cooperation across countries, especially as US-China discussions remain stalled.
Despite a slight change in tone from US leaders, there has been no formal movement toward a new trade agreement. President Donald Trump has made recent statements suggesting openness to easing tariffs, but no new deal is in sight.
US Officials Deny Tariff Reduction Plans
Treasury Secretary Scott Bessent responded on Wednesday to claims that the White House might reduce tariffs on Chinese goods without any conditions. He denied the report and said that both countries would need to make concessions for progress to happen.
Bessent compared the current tariff situation to an embargo, stressing that such high levels of trade restrictions could not last. He repeated that changes must come from both sides.
Earlier this week, President Trump said the current tariff rate of 145 percent on certain Chinese goods is too high and will likely come down. He said he wants to be very nice to China to help reach a deal.
Market Reactions and Business Impact
US stock markets had surged on Wednesday after hopes of improved trade relations. But on Thursday, markets slipped again as China pushed back on the US stance and talks showed no signs of progress.
Some major US companies are now reporting the negative effects of the ongoing trade war. In its latest earnings report, Tesla said production of its Optimus household robot had been disrupted. This is due to China’s recent restrictions on rare earth exports, which are vital for advanced electronics and robotics.
Breakdown of Tariff Levels
The current US tariff structure on Chinese goods includes:
- A 125 percent reciprocal tariff on various Chinese products
- A 20 percent tariff linked to the fight against fentanyl
- Section 301 tariffs on selected goods, ranging from 7.5 percent to 100 percent
In addition, a 10 percent baseline tariff that took effect on April 5 remains in place for all applicable imports.
China has also raised its own tariffs in response. Duties on US imports have increased from 84 percent to 125 percent. This back-and-forth has added uncertainty to global trade flows and affected both consumers and producers.
Wider Diplomatic Developments
While trade talks with China remain frozen, the US is making progress in its relationship with other nations. On Tuesday, US Vice President JD Vance met with India’s Prime Minister Narendra Modi. The two leaders discussed trade and cooperation in areas like defense, energy, and technology.
There are also reports that Trump may consider easing some specific tariffs. These could include exemptions for certain auto parts and consumer electronics. Although the president says tariffs will continue to play a major role in trade policy, he has signaled room for adjustments in certain cases.
Looking Ahead
Analysts warn that continued tension between the world’s two largest economies could lead to more market swings and business disruptions. Investors and companies are watching closely for any signs of change.
For now, both China and the US remain firm in their positions. Until either side shifts its approach, it is unlikely that a breakthrough will happen soon.
