Asger Risom
U.S.–China Negotiations Off to Frosty Start as White House Doubles Down
President Donald Trump has ruled out reducing U.S. tariffs on Chinese imports as a precondition for restarting trade negotiations with Beijing, effectively dashing hopes of any imminent breakthrough in the long-running economic standoff between the world’s two largest economies.
“No” to Tariff Relief as Talks Loom in Switzerland
When asked whether he would consider rolling back the 145% tariffs on Chinese imports to encourage talks, Trump responded simply, “No.”
His comments came during the swearing-in of David Perdue as the new U.S. ambassador to China, just one day before high-level trade representatives from both nations are scheduled to meet in Switzerland.
As reported by El Economista, the U.S. delegation—led by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer—is expected to meet with Chinese Vice Premier He Lifeng for what is being described as a mere “initial contact,” rather than the start of formal negotiations.
Bessent tempered expectations further, clarifying there is no draft agreement under discussion and that the upcoming meeting is only a “conversation about starting conversations.”
Markets responded immediately to Trump’s hardline stance, with Wall Street sliding into the red amid fears that the tariff war may persist for the foreseeable future.
Markets Rattled as Hopes for De-escalation Fade
The Federal Reserve has warned of looming stagflation risks exacerbated by the ongoing trade war, but Trump appears undeterred.
He claimed the U.S. once “lost a trillion dollars a year” to China through trade but now “we’re not losing anything,” referring to the reduced trade deficit under his tariff policies.
Since Trump paused global tariffs for 90 days in order to hike duties specifically on China, investors have been watching closely for any sign of thaw.
The market’s best-case scenario hinges on China offering symbolic concessions that would allow Trump to declare victory and scale back tariffs. But with Beijing reportedly unwilling to engage on those terms, the path to resolution remains deeply uncertain.
As Trump maintains a combative posture and China resists pressure, the rift between Washington and Beijing is widening, and the prospect of a negotiated end to the trade war appears as remote as ever.