Conflicting US-China Trade Statements Deepen Global Economic Uncertainty

April 26, 2025 — Conflicting statements from Washington and Beijing over the status of trade talks have heightened confusion in global markets, intensifying fears of economic instability.

Earlier this week, U.S. officials, including former President Donald Trump, claimed that trade discussions with China were actively progressing, suggesting that Chinese President Xi Jinping had initiated contact. However, Chinese authorities have firmly denied these assertions. Officials from both the Chinese Foreign Ministry and Commerce Ministry labeled the U.S. statements as "fake news," stating that no new consultations are currently underway.

The sharp discrepancy between the two narratives comes amid escalating tariff measures. The United States has imposed tariffs of up to 145% on a wide range of Chinese goods, while China has retaliated with tariffs as high as 125% on American products. These moves have severely disrupted global supply chains and added inflationary pressures across major economies.


In response to mounting trade pressures, President Xi announced a series of domestic economic measures aimed at strengthening China's internal market. These include enhancing unemployment benefits, providing greater financing support to businesses, and incentivizing domestic consumption. Additionally, China has waived tariffs on certain U.S. medical imports and is considering further exemptions to ease tensions.

Meanwhile, global financial markets remain volatile. While some sectors, particularly U.S. equities, have shown modest recovery on hopes of a potential de-escalation, economists warn that the uncertainty could trigger broader risks of inflation and recession. The International Monetary Fund (IMF) has also reiterated concerns, stating that prolonged trade tensions could weaken global growth and labor markets.

As both sides continue to issue conflicting signals, investors and policymakers are left navigating an increasingly unstable global economic landscape.

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