Former President Trump claims active trade talks with China are happening behind closed doors, but Beijing isn’t having it. China’s Foreign Ministry bluntly called Trump’s statements “fake news,” while maintaining their demand for complete U.S. tariff removal before any negotiations. With 145% American tariffs meeting 125% Chinese retaliation, retailers are feeling the squeeze. The economic standoff has turned into a high-stakes game of chicken that’s keeping everyone guessing.
Former President Trump insists trade talks with China are “actively” underway, even as Beijing flatly denies any negotiations are taking place. The stark contradiction comes amid escalating tensions, with the U.S. maintaining 145% tariffs on Chinese imports and China retaliating with 125% tariffs on American goods.
Trump’s claims about Thursday morning meetings with unnamed Chinese representatives have been met with immediate pushback from Beijing. When pressed about who exactly “they” were, Trump’s response was characteristically cryptic: “It doesn’t matter who ‘they’ is. We may reveal it later.”
Trump’s vague claims of Chinese meetings face Beijing’s denial, with his cryptic response offering no clarity on negotiation participants.
Meanwhile, China’s Foreign Ministry dismissed his statements as “fake news.”
Treasury Secretary Scott Bessent tried threading the needle, confirming some interaction with Chinese counterparts while downplaying their significance. He suggested Beijing’s public denials were because “they’re playing to a different audience.” Users interested in following the developing story can access live coverage on ABC News’ streaming platform.
The discussions, he noted, focused on “traditional things” like financial stability.
The trade war has evolved into what Bessent calls effectively a trade embargo between the world’s largest economies. China has halted Boeing aircraft purchases and restricted rare earth mineral exports. Recent polls show Americans are increasingly skeptical of Trump’s handling of the economic situation.
Trump, for his part, has excluded China from a 90-day tariff pause granted to other countries.
The economic implications are serious. Retailers are feeling the pinch, inflation concerns are mounting, and global supply chains are in disarray. Some experts warn the situation could push the U.S. economy into recession.
Despite the tension, Trump maintains his typical optimistic stance, claiming “We’re going to live together very happily” and suggesting tariffs might be reduced to between 50% and 65%.
China’s position remains unchanged: all U.S. tariffs must be completely canceled before any real negotiations can begin.
MIT Professor Yasheng Huang summed up the situation bluntly, calling it “a game of chicken.” With both sides digging in their heels and contradicting each other’s statements, any actual progress toward resolution remains elusive.
