China Signals Openness to Trade Talks as Trump Hints at Tariff Rollback – Global Markets React

In a potential breakthrough moment for global trade stability, China announced it is ready to resume dialogue with the United States, just one day after President Donald Trump signaled a possible reduction in steep tariffs imposed on Beijing.

The Chinese Foreign Ministry said on Wednesday that the “door is wide open” for trade talks, following Trump’s surprising admission that the current 145% tariff level on Chinese imports “will come down substantially.”

This unexpected shift in tone from both sides offers a glimmer of hope for investors and governments worldwide watching a tense economic standoff unfold between the world’s two largest economies.

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🛃 Tariff War De-escalating? Both Sides Suggest Room for Compromise

Trump’s remarks came during a media interaction on Tuesday, where he stated the tariffs “won’t be anywhere near that number [145%], but it won’t be zero either.”

Meanwhile, China’s President Xi Jinping echoed a conciliatory tone, warning that trade wars hurt all parties and threaten the global economic order.

“China pointed out early on that there are no winners in tariff wars,” said Chinese Foreign Ministry spokesperson Guo Jiakun. “Our position has not changed — the door for dialogue remains open.”

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💼 Markets React Positively to Cooling Rhetoric

The markets responded with relief:

• 📈 Hong Kong and Tokyo stock markets surged by nearly 2%
• 📉 Gold prices dipped slightly after hitting a record high the day before, signaling a retreat from safe-haven demand
• 📊 Wall Street indexes spiked following insider reports that U.S. Treasury Secretary Scott Bessent had also hinted at easing tensions

Bessent, during a closed-door session hosted by JPMorgan Chase, reportedly called the current tariff structure a “reciprocal embargo” but said he expects de-escalation in the near future.

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💬 White House: ‘Doing Very Well’ Toward a Deal

White House Press Secretary Karoline Leavitt reinforced the optimism, stating that the U.S. is “doing very well in respect to a potential trade deal with China.”

The sentiment comes as container shipping between China and the U.S. declines, reflecting business caution amid rising tariff costs.

“We’re not aiming for decoupling,” said Bessent. “Fair trade, not zero trade, is the goal.”

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🧭 Broader Diplomacy: China Builds Support in Europe and Asia

On the same day, China’s Foreign Minister Wang Yi contacted his counterparts in the UK and Austria, urging collective support for multilateral trade principles. Meanwhile, Japan is preparing to send a high-level envoy to Washington next week, with reports suggesting Tokyo may offer trade concessions to ease tensions with the U.S.

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⚠️ The Bigger Picture: Economic Stakes Remain High

Trump’s initial tariffs, introduced after accusing China of unfair trade practices and links to fentanyl production, ignited a retaliatory trade spiral. China responded with its own 125% duties, prompting widespread disruption to supply chains and investor confidence.

The WTO has warned that global trade could decline by as much as 1.5% this year if uncertainty spreads — marking the steepest drop outside crisis periods like the 2008 crash or 2020 pandemic.

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🧠 Final Word: Hope Returns, But Talks Must Deliver

While markets have rallied on the back of softened rhetoric, meaningful progress in trade negotiations remains essential. Without a concrete agreement, tariff uncertainty could resurface quickly, especially as political calendars heat up in Washington and Beijing.

With finance ministers and central bankers gathering in D.C. this week for the IMF–World Bank Spring Meetings, the world will be watching whether this diplomatic window leads to a breakthrough or another stalemate.

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