China’s Commerce Ministry announced on Friday that it is examining various proposals from the Trump administration related to trade talks, while emphasizing that the removal of substantial tariffs imposed by the United States is crucial. The ministry’s statement underscored China’s readiness to engage in dialogue, yet highlighted its resolve to retaliate if necessary, noting that the one-sided tariffs of up to 145% hinder trust.
“The tariff and trade wars were unilaterally initiated by the U.S.,” said the ministry, “If the U.S. wishes to negotiate, it should demonstrate sincerity and be prepared to rectify wrongful practices by cancelling these unilateral tariffs.” An unnamed spokesperson from the ministry noted that Beijing was aware of statements from senior U.S. officials indicating a willingness to reassess tariffs.
“Recently, the U.S. has conveyed messages to China through various channels expressing a desire for negotiations,” the ministry added. However, it warned that without altering President Donald Trump’s significant tariff increases, these overtures might appear insincere. “Saying one thing while doing another, or trying to employ coercion under the pretense of talks, won’t be effective on the Chinese side,” it remarked.
During China’s ongoing public holiday, with government offices and markets closed, Hong Kong’s share prices rose by 1.7% early Friday, and Taiwan’s benchmark index climbed by 2.2%, with U.S. futures moving upward as well. As of Friday, the Trump administration will be ending a duty-free exemption on low-value imports from China. This action is expected to result in increased prices and delayed deliveries as tariffs will now apply to every shipment.
Beijing has retaliated against Trump’s tariff measures by raising tariffs on U.S. imports up to 125% and has restricted exports to the U.S. of strategic minerals while halting imports of a range of U.S. agricultural products. Additionally, China has been working with other countries to form a coalition against Trump’s trade moves while intensifying its countermeasures against the effects of tariffs.
President Trump has also imposed a global 10% import tax, aiming to encourage manufacturers to relocate factories back to the U.S. He announced double-digit “reciprocal” tariffs on many nations but postponed them for 90 days to allow negotiation time. Foreign steel, aluminum, and auto industries have also been affected by these tariffs.
The most stringent tariffs were directed towards China, recognized as the foremost exporter and the world’s second-largest economy. The unpredictability of the announcements for increased tariffs, suspensions, followed by more tariffs, has caused uncertainty among companies, investors, and consumers, negatively influencing consumer confidence.
Treasury Secretary Scott Bessent, directing the administration’s China strategy, has stated he expects a call from Beijing since the tariffs are not sustainable. In an interview with Fox Business, Bessent remarked that the primary concern was not the high tariffs but other trade barriers. “There’s a range of adverse behaviors by the Chinese,” he said, citing intellectual property theft and cyberhacking.
“All aspects of the economic relationship are on the table,” he assured, expressing belief that China would eventually seek a resolution. However, China has shown minimal interest in compromising, with its foreign ministry releasing a video on social media this week accusing the U.S. of inciting global tariff tensions.
The video vowed that China would not capitulate in the trade war, stating, “Kneeling only invites more bullying.”