China Quietly Caving on Trade as Trump’s Tough Tariff Stance Gets Results [WATCH]

The Trump administration’s assertive trade posture appears to be producing results as China signaled on Friday that it is open to discussions on reducing tariffs.

The development follows a series of U.S. tariff hikes and signals a potential thaw in economic tensions between the world’s two largest economies.

In a statement released by China’s Commerce Ministry, officials confirmed they are “evaluating” an offer from the United States to begin talks regarding tariffs.

China is “evaluating” possible trade talks with the US, marking an oblique but significant shift in tone.

MofCom on Friday: “the US has recently sent multiple messages to China through relevant parties, hoping to start talks with China.”

“China is currently evaluating this.” pic.twitter.com/ARERsIv5jg

— Kristie Lu Stout✌🏽 (@klustout) May 2, 2025

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The statement came just days after Beijing announced tariff exemptions for approximately $40 billion worth of American goods, including pharmaceuticals and industrial chemicals.

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These exemptions represent roughly a quarter of all U.S. exports to China and mark a notable shift in China’s trade policy.

China is already caving to President Trump on tariffs, quietly.

At the same time, 177K jobs were added in April instead of the 138K expected.

Stock market futures are now looking good.

US economy is ending the week strong! pic.twitter.com/cbSbCurMez

— Paul A. Szypula 🇺🇸 (@Bubblebathgirl) May 2, 2025

The Chinese Commerce Ministry acknowledged the overtures from Washington: “The U.S. has recently taken the initiative on many occasions to convey information to China through relevant parties, saying it hopes to talk with China,” the ministry said.

While the statement expressed a willingness to engage, it also included a warning against pressure tactics.

“Attempting to use talks as a pretext to engage in coercion and extortion would not work,” the ministry added.

The easing of tariffs on select U.S. imports comes in the wake of President Donald Trump’s decision to raise tariffs on Chinese imports to 145%, part of a broader strategy to rebalance what the administration has long characterized as a lopsided trade relationship.

Trump has repeatedly stated that the U.S. must end decades of economic concessions to China and restore fair and reciprocal trade terms.

The Commerce Ministry’s announcement is being seen by administration officials as a direct response to these recent moves.

Treasury Secretary Scott Bessent, speaking Friday, confirmed that the administration views China’s latest move as a positive signal.

“I am confident that the Chinese will want to reach a deal. And as I said, this is going to be a multi-step process,” Bessent said.

“First, we need to de-escalate. And then over time, we will start focusing on a larger trade deal.”

“I am confident that the Chinese will want to reach a deal. And as I said, this is going to be a multi-step process. First, we need to de-escalate, and then … we will start focusing on a larger trade deal.”

Read more:https://t.co/B6Thaab9az pic.twitter.com/tb9tC09rlB

— 🇺🇸🇺🇸Red White and True News🇺🇸🇺🇸 (@RWTNews) May 2, 2025

The Trump administration’s economic team has continued to push for reforms on intellectual property protections, forced technology transfers, and broader market access for American companies operating in China.

These long-standing issues have been at the heart of the administration’s trade concerns since 2017.

China’s decision to exempt $40 billion worth of goods from tariffs could ease supply chain pressures in key sectors, particularly pharmaceutical and chemical industries.

U.S. firms had previously raised concerns about their ability to remain competitive under the previous tariff levels.

The administration has not set a formal date for negotiations, but U.S. officials confirmed that backchannel communications are ongoing.

This latest development marks another step in President Trump’s broader effort to recalibrate America’s global trade relationships through direct negotiations and increased economic leverage.

It remains unclear how long formal talks may take to materialize, but administration officials believe China’s shift signals recognition that the U.S. position is both firm and consequential.

Further announcements are expected in the coming weeks as both nations continue evaluating conditions for initiating trade talks.

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