China on Thursday said there haven’t been any trade talks between its side and the U.S., dampening investor enthusiasm after the Trump administration signaled a possible thaw in the trade war.
The foreign ministry in Beijing responded bluntly when asked about reports of talks or an imminent deal: “None of that is true,” ministry spokesman Guo Jiakun said.
“For all I know, China and the U.S. are not having any consultation or negotiation on tariffs, still less reaching a deal,” he said. “China’s position is consistent and clear: We will fight, if fight we must. Our doors are open, if the U.S. wants to talk. Dialogue and negotiation must be based on equality, respect and mutual benefit.”
The Dow Jones Industrial Average dropped over 100 points, while other indexes were up a bit, early Thursday after Beijing dismissed the existence of negotiations.
Its rejection belied enthusiasm on the U.S. side. President Trump said Wednesday that “everything’s active” when it comes to making a trade deal with China.
“We are going to have a fair deal with China. It’s going to be fair,” Mr. Trump told reporters Wednesday after walking on the North Lawn of the White House.
The U.S. is imposing a 145% tariff on most Chinese goods, with exceptions for certain electronics.
China slapped a 125% tariff on U.S. goods in retaliation for Mr. Trump’s “Liberation Day” trade plan, which imposed a blanket 10% tariff on all imports and heftier levies on countries that sell plenty of products to American consumers but don’t buy nearly as much from U.S. producers.
Dozens of nations are negotiating over trade barriers, but the U.S. and China are locked in a high-stakes standoff.
Treasury Secretary Scott Bessent said there is a chance for a “big deal” with China if it moves away from its export-heavy economy that floods the world with cheap goods.
The White House said it would be willing to lower tariffs, but only in concert with Beijing as part of negotiations.
China, however, wants the U.S. side to lower its tariffs unilaterally.
“If the U.S. truly wants to resolve the issue, it should heed rational voices from the international community and domestic stakeholders, completely abolish all unilateral tariffs on China, and find a solution through equal dialogue,” Commerce Ministry spokesman He Yadong said.
