Trade Talks on Hold: China Insists Trump Must End Tariffs First

China has urged the United States to scrap its sweeping tariffs on Chinese goods entering the country in a sign that President Donald Trump is serious about resolving the trade war between the two countries. A Chinese official said there had been no trade talks with the United States despite the Trump administration’s hints to the contrary. The trade war between the world’s two largest economies escalates as China returns Boeing planes requested by the United States in a final response to the tariffs.

However, Trump so far appears to have softened his stance on China, saying tariffs on imports from China will “drop significantly, but not zero.” The trade war between China and the United States is in full swing, with Trump imposing import duties of up to 145% on Chinese goods coming into the United States, and China retaliating with a 125% tariff on American products.

In one of China’s strongest statements yet on the tariff war, Commerce Ministry spokesman He Yadong said the U.S. should lift all “unilateral tariff measures” against China if it “really wants” to solve the problem.

Tensions between the two countries have shaken financial markets, with the two sides imposing strong tariffs on each other. Bank of England Governor Andrew Bailey said he was “clearly encouraged” by Basant’s comments about the IMF and the World Bank. Although Basant said the IMF and World Bank were “inadequate,” he did not call for the U.S. withdrawal from institutions, as some conservatives lobbied. He said the Trump administration would use U.S. influence in these institutions and “force them to carry out their important tasks.”

US Treasury Secretary Scott Bessent said there was a chance of a “big deal” between the US and China on trade.

Asked about an upcoming meeting between the two countries, Basant said there would be an “incredible chance” of reaching a deal if China was “serious” about making its economy less dependent on manufacturing exports.

Kelly Ortberg said this week that two planes had already been returned and another would follow because of trade tensions between the two countries.

China held a roundtable on Wednesday to address the concerns of more than 80 foreign companies about the impact of U.S. tariffs on their investments and operations in China, the Commerce Ministry said.

Deputy Commerce Minister Ling Jie said: “It is hoped that foreign companies will turn crises into opportunities.