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China Signals Openness to U.S. Trade Talks, Demands Tariff Removal as a Show of Sincerity

by Team Lumida
May 2, 2025
in Macro
Reading Time: 5 mins read
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China’s Financial Overhaul: Xi’s Strategy to Rebalance $9.1 Trillion Debt Crisis
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Key Takeaways:

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  • China expressed willingness to engage in trade talks with the U.S. but emphasized that Washington must demonstrate sincerity by canceling unilateral tariffs.
  • Beijing reiterated its stance of being open to negotiations but prepared to “fight to the end” if pressured, maintaining its 125% retaliatory tariffs against Trump’s 145% levies on Chinese goods.
  • President Trump has softened his tone on China but insists that tariffs will remain unless Beijing offers significant concessions, such as increased market access for U.S. businesses.
  • The Chinese Commerce Ministry criticized the U.S. for “saying one thing and doing another” and warned against coercion or blackmail under the guise of negotiations.
  • Beijing continues to rally domestic and international support, framing the trade war as a test of resilience and urging other nations to resist U.S. pressure.

What Happened?

China’s Commerce Ministry signaled a potential willingness to engage in trade talks with the U.S., provided Washington demonstrates sincerity by removing tariffs. The statement follows repeated comments from U.S. officials expressing interest in negotiations.

Beijing, however, remains firm in its position, refusing to negotiate under duress and accusing the U.S. of using coercive tactics. The ministry’s statement aligns with earlier messaging from the Chinese Foreign Ministry, which emphasized that China would “never kneel down” to American pressure.

President Trump, while softening his rhetoric, has made it clear that tariffs will not be lifted without substantial concessions from China, including greater access to its markets. Despite this, Trump has hinted that the current 145% tariff rate could be adjusted in the future.


Why It Matters?

The ongoing U.S.-China trade war continues to strain global economic relations, with both sides signaling a willingness to negotiate but remaining entrenched in their positions. For China, the removal of U.S. tariffs is a critical precondition for talks, while the U.S. seeks significant concessions to justify any tariff reductions.

The trade war has had significant economic consequences for both nations, with tariffs disrupting supply chains, increasing costs for businesses, and contributing to global economic uncertainty. Beijing’s call for international solidarity against U.S. pressure highlights the broader geopolitical implications of the conflict.

For businesses and investors, the potential for trade talks offers a glimmer of hope, but the lack of a clear timeline and continued posturing from both sides suggest that a resolution remains uncertain.


What’s Next?

China’s Commerce Ministry has not provided a timeline for its evaluation of U.S. overtures, leaving the door open for further developments. Meanwhile, President Trump’s administration is likely to continue signaling flexibility on tariffs while maintaining pressure for concessions.

The outcome of these negotiations will depend on whether both sides can find common ground, with the removal or adjustment of tariffs likely serving as a key indicator of progress. For now, the global economy remains in a state of uncertainty as the U.S.-China trade war continues to unfold.

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Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
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