On April 23, President Donald Trump addressed the media at the White House, expressing a willingness to “reopen trade talks” with China in what he called a “very friendly” manner. When asked about current tariff policies, he clarified that the 145% tariffs currently imposed on Chinese goods “won’t last forever” and suggested that, if a deal is reached, these could be “significantly reduced.” His remarks have been widely interpreted as a signal that the White House may be recalibrating its approach to China, potentially paving the way for a new chapter in U.S.–China trade relations.
Trump’s comments notably mark a softer stance on tariffs. While stating that tariffs won’t be reduced to zero, he acknowledged that the existing rates are “definitely too high.” He emphasized that the tariffs were merely a bargaining tool, not a permanent arrangement. Supporting this tone shift, Treasury Secretary Scott Besant reportedly said in a closed-door session that the current stalemate isn’t sustainable—hinting that the U.S. is also seeking to restore stability in bilateral ties.
The White House has been sending out other signals of readiness to re-engage. Press Secretary Karoline Leavitt mentioned that the administration is working on establishing a new framework for dialogue, aiming for a mutually beneficial outcome. While no concrete negotiation timeline was shared, growing signs of backchannel communication suggest that preparations for resumed talks may already be underway.
Markets have also played a role in pushing this dialogue forward. Since the announcement of steep U.S. tariffs, global financial markets have shown increased volatility. U.S. equities have faced several sessions of consecutive declines, with risk aversion rising and business confidence dipping. Numerous American business leaders have reportedly raised concerns with Washington, warning that prolonged tariffs are straining supply chains and increasing costs—undermining U.S. firms’ competitiveness.
On the Chinese side, Beijing has so far maintained a cautious tone, without directly responding to Trump’s latest remarks. However, signs point to a strategic posture-taking. China’s Ministry of Commerce is currently evaluating its options under different negotiation scenarios, and the country’s diplomatic corps continues to underline the importance of equal footing in any talks. Meanwhile, recent adjustments to China’s rare earth export licensing system are seen as a strategic move, giving Beijing flexibility if talks resume.
Analysts generally agree that China’s composed response comes from its strong domestic demand and increasingly mature supply chain relationships with ASEAN countries. Experts believe that if Washington is serious about resetting talks and making headway, it may need to offer concessions on technology cooperation and market access—without which traditional negotiating tactics may no longer be effective.
The tariff dispute has also led more multinational companies to reexamine the risks of overly concentrated supply chains. Publicly available data indicates that in response to growing U.S.–China tensions, hundreds of companies have gradually shifted parts of their production to countries like Vietnam, India, and Mexico. The movement is especially noticeable among electronics and automotive component makers, underscoring the business world’s search for alternatives amid rising uncertainty.
At the global level, several European countries have voiced concern over the rising trade tension between Washington and Beijing. The EU’s trade chief called on both parties to return to a multilateral dialogue framework to prevent further disruptions to the global supply network. Meanwhile, the International Monetary Fund warned that failure to resolve the impasse could heighten downside risks for the global economy—with emerging and developing economies likely to bear the brunt.
Following the release of these statements, investor sentiment showed signs of improvement, with U.S. markets bouncing back. The S&P 500 rose by as much as 2%, led by gains in the tech sector—signaling optimism about potential tariff relief on key products. Still, not all experts are convinced. Some point to Trump’s unpredictable policy history, suggesting that despite the current olive branch, corporations and investors should remain cautious and prepared for sudden shifts.
As the U.S. presidential election approaches, the trade standoff is likely to become a key factor in the broader political and economic equation. Whether the next few weeks will bring meaningful progress remains to be seen. What is clear is that this tug-of-war is not over—and every statement or policy adjustment could reshape the trajectory of global trade dynamics.