Japan’s economic revitalization minister Ryosei Akazawa (second from left) and Treasury Secretary Scott Bessent (second from right) hold the second round of tariff negotiations Thursday in Washington. (Kyodo/AP)
| Published May 2, 2025
China’s Commerce Ministry announced that it is “evaluating” a U.S. proposal to initiate discussions regarding President Donald Trump’s 145% tariffs on Chinese imports. Beijing indicated openness to dialogue but emphasized that Washington must demonstrate sincerity by correcting “erroneous practices” and removing unilateral tariffs. The ministry cautioned against using negotiations as a means of coercion or extortion.
The U.S. has made multiple overtures to China through various channels, expressing a desire to engage in talks. In response, China has compiled a list of U.S. products—such as certain pharmaceuticals, microchips, and jet engines—that will be exempt from its retaliatory 125% tariffs, signaling a potential easing of tensions.
U.S. officials, including Treasury Secretary Scott Bessent and White House economic adviser Kevin Hassett, have expressed optimism about reaching a deal. President Trump stated there is a “very good chance” for an agreement, while Chinese President Xi Jinping has called on officials to adapt to changes in the international environment, though he did not specifically mention the United States.
This development suggests a possible de-escalation in the ongoing trade war, which has significantly impacted global markets.
The implications of this potential U.S.-China tariff negotiation are significant for global trade, politics, and economic stability. Here are the key takeaways:
1. De-escalation of Trade Tensions
If negotiations progress, it could mark the beginning of a thaw in U.S.-China trade relations. This would reduce uncertainty in global markets and encourage investment.
2. Boost to Global Markets
Markets generally react positively to signs of cooperation between the world’s two largest economies. Lower tariffs could lead to higher trade volumes and improved investor confidence.
3. Strategic Leverage and Political Optics
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For the U.S.: President Trump’s administration is portraying the offer to negotiate as a sign of strength, showing willingness to talk while maintaining pressure with high tariffs.
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For China: The willingness to exempt some U.S. products shows Beijing wants to keep critical imports flowing while pushing back diplomatically.
4. Economic Relief for Affected Industries
Sectors hit hardest by tariffs—like tech, agriculture, and pharmaceuticals—could see relief. A rollback of tariffs might lower costs, revive exports, and ease supply chain bottlenecks.
5. Testing Diplomatic Strategy
Beijing’s insistence on U.S. “sincerity” and warning against coercion signals that negotiations won’t be one-sided. Both nations are testing how far they can go without appearing weak domestically or internationally.
6. Potential Ripple Effects
A resolution could influence how the U.S. handles trade disputes with other nations (e.g., the EU or Mexico) and shape future policy under Trump’s administration or future leaders.
SOURCES: NEWSMAX – China ‘Evaluating’ US Offer to Negotiate Tariffs; Beijing’s Door Is ‘Open’
REUTERS – China ‘evaluating’ US offer to talk tariffs; warns against ‘extortion’
AL JAZEERA – China says it is ‘evaluating’ Trump administration’s outreach on tariffs
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