On the 100th day of President Trump’s second term, the ongoing U.S.–China trade standoff may be inching toward a turning point. In a statement released Friday, China’s Ministry of Commerce declared that “the door is open” to discussions, provided the United States shows sincerity and retracts its unilateral tariff policies. The statement marks the clearest public signal yet that Beijing is willing to return to the negotiation table — albeit on its own terms.
This shift comes after reports from Chinese state media that the Trump administration quietly reached out to initiate talks, despite the president’s public insistence that Xi Jinping must make the first move. The messaging split appears intentional: tough talk for domestic politics, and quiet diplomacy for global markets.
“If we fight, we will fight to the end; if we talk, the door is open,” the ministry said. “The United States initiated this trade war. If it wants to resolve it, it must correct its wrong practices.”
Tariffs, tensions, and quiet rollbacks
While neither side has made dramatic moves publicly, both have begun laying groundwork for a soft de-escalation. China has reportedly compiled a “whitelist” of U.S. products now exempt from its 125% retaliatory tariffs, including ethane, semiconductors, and some pharmaceuticals. Companies are being privately notified of these exceptions — a strategic way to reduce domestic pain without conceding publicly.
On the American side, President Trump signed an executive order offering relief to the battered auto industry. Under the new directive, automakers already paying tariffs on imported vehicles won’t face double taxation on steel, aluminum, or parts. U.S. duties on foreign components are also being eased.
The auto sector’s lobbying paid off after warnings that the 25% tariffs would devastate car sales and spike consumer prices. GM notably pulled its 2025 guidance this week, citing “material tariff exposure.”
From bluster to bargaining?
President Trump has defended his 145% tariffs on Chinese imports, insisting that China “deserves it” and will “absorb the cost.” But his own officials, including Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, have been floating phased rollbacks and signaling openness to talks.
Bessent confirmed this week that the U.S. is “very close” to a deal with India, and that another unnamed nation is also on the brink of agreement. These parallel negotiations suggest a broader strategy to claim trade victories amid voter concerns over rising prices and slowing growth.
Global ripple effects
The trade war’s impact is being felt well beyond U.S. and Chinese borders. Australia recently posted a rare trade surplus with the U.S., thanks to a surge in gold exports as investors hedge against tariff volatility. Meanwhile, factory activity in China slowed sharply in April, as new export orders declined and employment weakened.
Despite this turbulence, Wall Street is eyeing a rebound. Signs of a softening posture on both sides are fueling hopes that the world’s two largest economies may be ready to climb down from the brink — or at least pause the tariff escalation long enough to talk.
