In a dramatic turn in the ongoing US-China trade tensions, former US President Donald Trump has claimed that Chinese President Xi Jinping reached out to him to discuss tariff-related negotiations. However, China’s Foreign Ministry has publicly denied any such communication or ongoing consultations, intensifying the diplomatic confusion and market uncertainty surrounding global trade dynamics.
Trump Asserts Leadership in Tariff Talks
In a recent interview with Time magazine, Donald Trump declared that President Xi had personally called him amid the ongoing trade dispute between their two nations. “He’s called. And I don’t think that’s a sign of weakness on his behalf,” Trump stated, framing the call as a strategic overture by China rather than an act of concession.
Trump further added that the United States has negotiated 200 trade deals and anticipated their ratification within three to four weeks. “We’re meeting with China. We’re doing fine with everybody. But ultimately, I’ve made all the deals,” he emphasized.
Despite the bold claims, Trump refrained from detailing the contents of the supposed conversation with Xi when asked again by reporters before departing for Pope Francis’s funeral. “I don’t want to comment on that, but I’ve spoken to him numerous times,” he said, later adding that further details would be shared “at the appropriate time.”
Beijing’s Categorical Denial
Contradicting Trump’s assertions, Chinese Foreign Ministry spokesperson Guo Jiakun swiftly responded to media inquiries, stating unequivocally, “China and the US are not having any consultation or negotiation on tariffs.”
Guo criticized the United States for “creating confusion” and reaffirmed that there were no active tariff discussions in progress. This isn’t the first time Beijing has pushed back against Washington’s narrative—previously, Chinese officials accused the Trump administration of “misleading the public” about the status and scope of bilateral trade negotiations.
The discrepancy between the two accounts has raised fresh concerns over transparency and credibility in diplomatic communications between the world’s two largest economies.
Trade War Escalates Despite Rhetoric
While both governments send mixed messages about potential de-escalation, the trade war continues to intensify. Earlier this month, Trump imposed a massive 145 percent import tax on Chinese goods. China retaliated with a 125 percent tariff on American products—both moves further inflaming trade hostilities and unsettling global markets.
Despite the escalation, China recently granted quiet exemptions to certain US goods, a move that experts interpret as a subtle gesture to stabilize bilateral economic relations. Whether this reflects a broader intention to cool the conflict or merely a tactical adjustment remains unclear.
Trump’s Department Store Analogy Raises Eyebrows
Trump’s approach to trade negotiations is as unorthodox as it is theatrical. In the Time interview, he compared the United States to a “giant, beautiful store” over which he presides as the ultimate price-setter.
“I am this giant store,” he said. “And on behalf of the American people, I own the store, and I set prices, and I’ll say, if you want to shop here, this is what you have to pay.”
This metaphor, while vivid, underscores Trump’s unilateral philosophy on trade—a strategy critics argue lacks nuance and risks alienating key allies and partners.
Global Trade Strategy: ‘200 Deals’ and International Outreach
Beyond China, Trump outlined his administration’s expansive trade agenda, asserting that talks had been held with numerous countries, including Japan, India, South Korea, the European Union, Canada, and Mexico.
He singled out Japan as being “very close” to finalizing a bilateral deal. “That’s the test case,” noted one analyst, referring to how such a deal might shape negotiations with other nations.
However, Trump made it clear that he had no intention of reducing the baseline 10 percent tariff—impacting nations such as Australia—unless reciprocal reductions in import duties and non-tariff barriers were made by those countries.
“These are countries—some of them have made hundreds of billions of dollars, and some of them have made just a lot of money,” Trump said. “Very few of them have made nothing because the United States was being ripped off by every, almost every country in the world.”
He insisted his pricing strategy was based on sound statistical analysis and national interest.
Domestic and Market Reactions
Trump’s remarks arrive amid heightened market volatility and economic uncertainty. When asked whether his recent 90-day delay on reciprocal tariffs was due to negative market reaction, Trump dismissed the suggestion.
“The bond market was getting the yips, but I wasn’t,” he stated. “Because I know what we have. But I also know we won’t have it for long if we allowed four more years of the gross incompetence.”
These statements appear to be directed at both domestic critics and potential 2024 election rivals, reinforcing his self-styled image as a hardline negotiator and economic nationalist.
Implications for Future US-China Relations
The conflicting narratives emerging from Washington and Beijing suggest that while backchannel diplomacy might still exist, there is no formal progress on tariff reduction or trade normalization. The divergence in messaging has confused investors, diplomats, and industry leaders alike.
Some trade analysts speculate that China’s limited exemption of certain US goods could signal a willingness to reopen dialogue discreetly. Others argue it may be part of a broader strategy to manage internal economic pressures without making overt political concessions to the United States.
Conclusion: Signal or Noise?
The global economic community is left parsing the meaning behind Trump’s comments and China’s rebuttal. While Trump portrays himself as a master dealmaker nearing the completion of 200 trade agreements, Beijing continues to present a picture of diplomatic restraint and strategic silence.
Without official confirmation or transparent negotiation frameworks, the situation remains volatile. The trade war, already costing billions in tariffs and lost exports, appears no closer to resolution—despite declarations from Washington.
For now, stakeholders across industries must brace for continued uncertainty, pending either concrete policy shifts or verifiable announcements from both parties involved. Until then, Trump’s remarks remain part political theater, part economic signal, and all headline fodder in a deeply divided global trade narrative.
