Beijing has confirmed it is currently assessing a proposal from Washington to hold discussions over U.S. President Donald Trump’s newly imposed 145% tariffs, signaling a possible opening for dialogue amid a tense and prolonged trade conflict. China’s Commerce Ministry acknowledged that the United States had reached out via multiple channels to initiate talks. However, Beijing cautioned that any discussions must be conducted without coercion or pressure, firmly rejecting what it described as attempts at “extortion and coercion.”
The trade dispute between the world’s two largest economies has rattled global markets and disrupted supply chains, with each side reluctant to be perceived as yielding. The Chinese government reiterated its willingness to maintain dialogue but emphasized that Washington must show “sincerity” in negotiations by correcting what Beijing sees as unfair trade practices and rolling back unilateral tariffs. The Ministry’s remarks came a day after Chinese state-linked sources indicated the U.S. was seeking a way to restart negotiations, though previous claims by Trump that talks were already underway were denied by Chinese officials.
China responded to the U.S. tariffs by imposing retaliatory duties of 125% on a wide range of American imports. Analysts warn that tariff rates exceeding 35% on either side are likely to destroy profit margins, making bilateral trade economically unfeasible. While Beijing continues to publicly reject the notion that it is seeking an off-ramp from the current tariff regime, behind the scenes, it appears to be taking selective steps to mitigate domestic impact. Reports suggest China has quietly developed a list of U.S. goods—such as certain pharmaceuticals, semiconductors, and jet engines—that will be exempted from the 125% tariffs, indicating a more nuanced approach to the conflict.
Adding to the tension, the Trump administration recently ended duty-free treatment for low-value shipments from China and Hong Kong under the “de minimis” threshold. This move removes a longstanding benefit for Chinese exporters and further escalates the pressure. U.S. officials, including Treasury Secretary Scott Bessent and economic adviser Kevin Hassett, have expressed optimism about a potential breakthrough. Bessent stated that the immediate goal is to de-escalate tensions as a precursor to negotiating a more comprehensive trade agreement.
President Trump remains publicly hopeful, stating there is a “very good chance” a deal could be reached. Meanwhile, Chinese President Xi Jinping has called on domestic officials to prepare for shifts in the global landscape, hinting at strategic recalibration without directly addressing the United States.
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