China has made the decision to waive tariffs on certain U.S. imports, suggesting a potential de-escalation in the ongoing trade war between the two nations. However, this development was quickly overshadowed by a denial from China regarding U.S. President Donald Trump’s claim that negotiations were in progress. Business groups reported that China has allowed specific U.S.-made pharmaceuticals to enter the country without the previously imposed 125% tariffs, which were introduced earlier this month as a response to Trump’s own tariffs on U.S. goods.
Furthermore, there is a list of 131 product categories under consideration for tariff exemptions that has circulated among businesses and trade groups, although this list has not been confirmed by Reuters. While Trump indicated in a recent interview that dialogue was occurring and mentioned that Chinese President Xi Jinping had reached out to him, China firmly rejected the idea of any discussions taking place. The Chinese Embassy in Washington stated, “China and the U.S. are NOT having any consultation or negotiation on tariffs.
The U.S. should stop creating confusion.” Beyond China, Trump has also proposed tariffs on a number of other countries and has paused these measures until July 9, prompting a rush among U.S. trading partners to finalize individual trade agreements. Trump expressed optimism about nearing a deal with Japan, viewing it as a critical case for future bilateral negotiations.
Economists warn that the series of tariffs could lead to increased prices for American consumers and raise the likelihood of a recession, highlighting the tension between Trump’s goals and economic realities. Meanwhile, there have been positive movements in global markets, with European and Asian stocks showing gains, as investors sense a potential reduction in trade tensions between the U.S. and China.