In a statement that sent ripples through global markets, former President Donald Trump said Chinese President Xi Jinping personally called him and that the United States and China are engaged in active trade negotiations, according to an interview published by Time Magazine on Friday. However, China’s Foreign Ministry has swiftly denied any such discussions, exposing a stark divide between Trump’s assertions and Beijing’s official position.
🔹 Trump’s Statement: “Deals Coming Soon”
During the Tuesday interview with Time, Trump said he expected trade deals to be announced within “the coming three or four weeks.” He portrayed Xi’s outreach as a signal of cooperation rather than weakness.
“I don’t think that’s a sign of weakness on his behalf,” Trump said of Xi. “I think we’re going to live together very happily and ideally work together.”
Trump’s tone on China has noticeably softened in recent days. While he maintained that high tariffs were a necessary tool to secure fairer trade deals, he also hinted they could be substantially reduced soon—just not to zero.
🔹 China Responds: “No Consultations Are Taking Place”
China wasted no time in issuing a denial. On Thursday, Chinese Foreign Ministry spokesperson Guo Jiakun firmly stated:
“As I have learned, China and the U.S. are not having consultations or negotiations on tariffs, still less reaching a deal.”
In a follow-up on Friday, Guo reiterated the stance:
“The U.S. should stop creating confusion.”
This public contradiction raises fresh questions about the state of U.S.-China relations and casts doubt on the credibility of Trump’s claims, especially amid ongoing geopolitical tensions and a fragile global economic climate.
🔹 Markets React: Hope or Hype?
Despite conflicting reports, Trump’s remarks offered a glimmer of optimism for investors. The stock market responded with slight gains as hopes rose for a possible easing of trade tensions between the world’s two largest economies.
Tim Waterer, Chief Market Analyst at KCM Trade, told the Associated Press:
“Markets will continue to listen out for the latest White House rhetoric on tariffs. Direction will more likely than not continue to be dictated by Trump’s latest whims regarding trade.”
U.S. Treasury Secretary Scott Bessent added to the speculative optimism, telling private investors that the ongoing trade war with China was “unsustainable” and suggesting that de-escalation could be on the horizon.
🔹 Background: Tariffs and Trade War Pressures
Since his presidency, Trump has relied heavily on tariffs to force changes in trade dynamics. His administration imposed a 125% tariff on Chinese imports—plus a 20% tariff related to China’s role in the fentanyl trade, and additional duties under Section 301. China retaliated in kind, escalating the trade war and disrupting global supply chains.
Notably, despite the public confrontations, there have been reports of quiet waivers issued by Chinese customs on certain U.S. tech imports, such as semiconductors—signs that economic interdependence may still trump political rhetoric.
🔹 What’s Next: Wait and Watch
Trump said trade announcements could come in the next three or four weeks. But with China’s categorical denials and an absence of formal negotiations, observers are left uncertain whether the U.S. is on the brink of a new agreement or simply witnessing another episode in a long saga of tariff-fueled diplomacy.
For now, businesses, economists, and foreign policy experts will keep a close eye on developments, hoping that talk translates into action—or at least some clarity.
