President Donald Trump has adopted a more conciliatory tone ahead of renewed trade negotiations with China, signaling a shift from his previously aggressive stance on tariffs and economic policy.
While speaking in Washington, Trump indicated that tariffs could be significantly reduced if a trade agreement is reached. However, he clarified that they would not be completely removed.
“We’re going to be very nice, and they’re going to be very nice, and we’ll see what happens,” he said, emphasizing a more cooperative approach.
Trade Tensions Deemed Unsustainable
Treasury Secretary Scott Bessent also commented on the ongoing situation, stressing that the current level of trade tension is unsustainable. His remarks suggest a broader change in the administration’s strategy.
Trump added that he would not bring up sensitive issues such as COVID-19 during future discussions with Chinese President Xi Jinping, acknowledging the political sensitivities involved.
This follows criticism from Chinese diplomats after the White House recently launched a controversial website suggesting that the virus originated from a laboratory in China.
China has responded with a more diplomatic tone as well. Foreign Ministry spokesman Guo Jiakun confirmed that dialogue channels remain open and reiterated that “trade conflicts yield no victors.”
However, Beijing insists that clear terms must be agreed upon before any direct talks between President Xi and Trump can take place.
Global Markets Respond Positively
These developments have boosted investor confidence. Chinese stocks in Hong Kong closed 2.1% higher, and the yuan appreciated by 0.2% against the US dollar.
Despite the improved tone, the steep 145% tariffs that Trump imposed on Chinese imports earlier this year remain in place. Some exceptions have been made for certain technology products and widely used consumer electronics.
Analysts believe that Trump’s shift in approach may be driven by economic pressures, including falling stock prices and persistently high US Treasury yields.
“Trump is panicking due to the markets plummeting. China does not need to offer anything significant in such circumstances,” said Alicia Garcia Herrero, Chief Asia Pacific Economist at Natixis.
Adding to the complexity, President Xi has yet to communicate directly with Trump since his return to office. In the meantime, China has intensified its global diplomacy, warning other countries against making deals with the US that might harm Chinese interests.
During a recent meeting with Azerbaijan’s President Ilham Aliyev, President Xi emphasized the broader harm of tariff wars, saying they threaten the rights and interests of all nations.
Key Takeaways
- China’s diplomatic push continues. Foreign Minister Wang Yi has highlighted the importance of defending global trade norms and multilateral cooperation amid the US-China dispute.
- Premier Li Qiang has sought closer coordination with Japan, calling for a joint response to the US tariffs.
- Chinese media have portrayed Trump’s softened stance as a retreat, with terms like “Trump chickening out” trending on social platforms such as Weibo.
The evolving tone from both Washington and Beijing suggests a window of opportunity for compromise, though meaningful progress will likely depend on concrete steps from both sides.
