U.S. President Donald Trump claimed in an interview with TIME that tariff talks with China were underway, saying Chinese President Xi Jinping had called him. However, China quickly denied any ongoing negotiations, posting via its U.S. embassy that "the U.S. should stop creating confusion." Speaking aboard Air Force One, Trump said opening China's markets to U.S. products would be a major victory.
The conflicting signals added uncertainty around Trump's unpredictable tariff strategy, which has already impacted dozens of countries and global economic forecasts. U.S. trade officials are fast-tracking negotiations during the IMF and World Bank meetings in Washington, reportedly focusing on tariffs, non-tariff barriers, digital trade, rules of origin, and economic security with 18 countries.
Despite optimistic comments from U.S. Treasury Secretary Scott Bessent, many foreign finance ministers remained cautious, citing risks to global jobs and growth. Some signs of de-escalation emerged: China exempted certain U.S. pharmaceutical imports from steep tariffs, and a list of 131 other potential exemptions, including vaccines and chemicals, circulated among trade groups.
Trump also hinted at a near-finalized trade deal with Japan, possibly to be announced at the upcoming G7 summit. He claimed to have "200 deals" in the pipeline, expecting many to finalize within weeks, though he offered few details. Trump reiterated that maintaining tariffs between 20% to 50% a year from now would still represent a "total victory."
While Trump believes tariffs will revive U.S. manufacturing, economists warn they risk raising consumer prices and triggering a recession. U.S. stock markets remain down roughly 10% since Trump returned to office, and global finance leaders continue urging for swift resolutions to avoid further economic damage.