China Demands Tariff Cancellation as Trade War Escalates

Tensions rise as China requests the US cancel its tariffs, indicating a serious commitment to resolving trade disputes while the US signals a possible shift in its approach.

China has firmly urged the United States to lift its extensive tariffs on Chinese imports as a crucial step towards genuine trade negotiations. The call from Chinese officials comes amid heightened tensions in the trade war between the two global economic powerhouses, characterized by retaliatory actions like China returning previously ordered Boeing aircraft to the US.

Despite assertions from the Trump administration that negotiations were ongoing, Chinese officials indicated that no discussions had actually taken place. In a strong statement, He Yadong, a spokesman for China's Ministry of Commerce, emphasized that the US must eliminate its “unilateral tariff measures” if it truly wishes to resolve the ongoing dispute, referencing the significant economic strain caused by these tariffs. "The person who tied the bell must untie it," remarked He, highlighting the need for the US to take meaningful actions.

Reports from the Trump administration suggesting active negotiation efforts have also been sharply contradicted. US Treasury Secretary Scott Bessent confirmed that no such consultations had begun, although he did suggest that there may still be a chance for a significant trading agreement between the two nations. He described the current escalation of tariffs as "unsustainable."

Trump appears to have softened his rhetoric surrounding China, expressing hopes for a favorable deal and implying that some tariffs could be lowered, though not entirely abolished. His statements came after he indicated he would engage in negotiations with "kindness." However, in response to China’s position, he remarked via his Truth Social media channel that Boeing should take action against China for their non-compliance regarding aircraft orders.

As tensions simmer, Boeing's CEO confirmed that several planes ordered by China had been returned as part of their retaliatory measures against US tariffs. In an effort to mitigate the fallout from tariffs on more than 80 foreign enterprises operating in China, the Chinese government hosted a roundtable on Wednesday to discuss investment impacts and strategies moving forward. Vice Commerce Minister Ling Ji encouraged businesses to view potential crises as opportunities for growth and adaptation in the changing economic landscape.