Fresh Uncertainty Clouds U.S.-China Trade Talks Amid Conflicting Statements

 Amid growing global concerns about trade stability, fresh confusion has emerged from Washington and Beijing over the status of ongoing tariff negotiations.

On Friday, U.S. President Donald Trump asserted that discussions with China were underway, claiming to have struck "200 deals" poised for completion in the coming weeks. Trump reiterated his optimism while speaking to reporters before departing for Rome to attend the funeral of Pope Francis.

However, China swiftly denied the existence of any active talks. In a sharply worded statement, the Chinese Embassy in the United States insisted, "China and the U.S. are NOT having any consultation or negotiation on tariffs. The U.S. should stop creating confusion."

This back-and-forth has injected new volatility into an already fragile global trade environment. Business groups reported some signs of de-escalation, including China's decision to exempt certain U.S. pharmaceuticals from steep retaliatory tariffs. A confidential list of 131 additional U.S. product categories including vaccines, chemicals, and jet engines is reportedly under review for possible exemptions, although Chinese authorities have yet to make any public announcements.

Meanwhile, U.S. Treasury Secretary Scott Bessent characterized recent meetings with international finance officials as "productive," though many of their counterparts voiced caution. Irish Finance Minister Paschal Donohoe warned that the ongoing tariff battles pose serious risks to jobs, growth, and living standards worldwide.

Markets responded cautiously to the mixed signals. Wall Street's major indexes posted slight gains, while European and Asian markets rallied for a second straight week on hopes that tensions could ease. Nevertheless, economists continue to warn that prolonged trade uncertainty could heighten recession risks and drive consumer prices higher, particularly in the U.S.

As Trump presses ahead with aggressive tariff policies  including blanket import duties and targeted measures on steel, aluminum, pharmaceuticals, and semiconductors many nations are scrambling to negotiate exemptions or separate trade deals. Talks with South Korea and Switzerland have reportedly made initial progress, while negotiations with Japan and others are ongoing.

International Monetary Fund (IMF) Managing Director Kristalina Georgieva emphasized the urgent need for a coordinated global effort to prevent a broader economic slowdown.

With conflicting narratives from Washington and Beijing, the path forward remains murky. Businesses, investors, and governments worldwide will be closely watching for any concrete developments in the coming weeks.