In a sign of possible relief in the ongoing trade war, China has lifted tariffs on some American goods, sparking cautious hope that tensions between the world’s two largest economies might be softening. However, any optimism was quickly clouded by Beijing’s strong denial of US President Donald Trump’s claim that negotiations were back on track.
On Friday, Chinese authorities quietly exempted certain US-made products, including pharmaceuticals, from the sharp 125% tariffs imposed earlier this month. These duties were China’s response to Trump’s 145% tariff hike on Chinese imports. Business groups welcomed the move and said it could be a small step toward easing hostilities.
At the same time, a list of 131 US product categories—possibly up for exemption—was reportedly circulating among trade insiders. Though the list, which allegedly includes vaccines, chemicals, and jet engines, has not been confirmed by Chinese officials, it added to speculation that China is trying to avoid further economic strain.
President Trump, eager to show progress, told TIME magazine that talks were happening and even suggested that Chinese President Xi Jinping had personally reached out to him. But China flatly rejected that claim. “China and the US are NOT having any consultation or negotiation on tariffs,” the Chinese Embassy in Washington posted on social media, accusing the US of spreading confusion.
Trump’s broader trade strategy includes tariffs not just on China, but also on dozens of other countries, though many of those have been paused until July 9. Trading partners are now scrambling to strike individual deals with Washington—a challenging task given the complexity of trade agreements.
Trump also hinted at progress with Japan, calling it a possible “test case” for future deals. Analysts expect more news at the upcoming G7 summit. Despite Trump’s bold statement that he has made “200 deals,” details remain unclear.
While Wall Street and global markets showed cautious gains, economists warn that Trump’s sweeping tariffs may raise prices for US consumers and risk economic slowdown. Still, signs of even a slight thaw in tensions are being watched closely across the globe.
