On the same day the Trump administration closed the loophole that allowed Americans to buy inexpensive goods from China and Hong Kong without having to pay tariffs, China issued a statement in the ongoing trade war with the U.S. The statement, from China’s Ministry of Commerce, delivered mixed messages.
The statement claims that U.S. officials have tried contacting China “through relevant parties multiple times” to begin negotiations on tariffs.
What is the status of tariffs between the United States and China specifically?
In April, President Donald Trump slapped a 145% levy on Chinese goods entering the United States. China responded by hitting the United States with a 125% tariff on products that the U.S. sends there.
In addition, shipments from China, for goods under $800 that were exempt from the tariffs, are no longer exempt as of Friday, May 2. That lifting of the loophole is prompting fears in the U.S. of higher prices for consumers and delivery delays.
Tariffs
China says that “the door is open” to negotiation over trade. The country currently has a 125% tariff on most American goods flowing in.
CNN translated the Chinese statement, which reads, “The tariff and trade war was unilaterally initiated by the U.S., and if it wants to negotiate, it must demonstrate genuine sincerity… that includes being prepared to correct its wrongdoings and cancel its unilateral tariff hikes. China’s position remains consistent: If it’s a fight, we will see it through to the end. If it’s talk, the door is open.”
What is the Trump administration saying about direct talks with China?
The latest development came on the heels of the U.S. Secretary of State Marco Rubio telling Fox News that the Chinese are reaching out and that they want to meet and talk. Rubio claimed that the Trump tariffs have hurt the Chinese economy, causing job loss.
Treasury Secretary Scott Bessent told Fox Business Network that the current tariff levels are “not sustainable on the Chinese side” and a deal could be made between the two sides.
The United States and China are the world’s two biggest economies. This week, President Trump signed an executive order reducing overall tariffs on imported cars and parts after previously undoing tariffs on various electronic products last month.
For its part, according to CNBC, China has granted waivers on tariffs on imports of certain American goods such as pharmaceuticals, aerospace equipment, semiconductors and ethane.
Some experts believe, when it comes to the trade war, each side is waiting for the other to blink first.
