Donald Trump's cabinet members sent mixed signals on whether tariff talks with China are underway, despite Trump's claims, fueling confusion as market instability and recession fears grow amid ongoing tensions between the world’s two largest economies.
While the Trump administration last week appeared open to easing tensions in the trade war with China, a conflict that has fueled recession fears, Beijing denied that talks were happening.
Treasury Secretary Scott Bessent, a key figure in trade negotiations, said he met with Chinese officials during the IMF meetings in Washington but did not discuss tariffs. Meanwhile, Agriculture Secretary Brooke Rollins said on CNN that the U.S. is holding daily conversations with China regarding tariffs.
When asked directly on ABC whether tariff talks were happening, Bessent avoided giving a clear answer, stating that his discussions with Chinese officials focused on financial stability and global economic risks, and he wasn't sure if Trump and Chinese President Xi Jinping had spoken.
Bessent previously warned that negotiations with China would be tough and slow, suggesting that while a full trade deal might take months, a basic agreement to ease tensions could happen sooner.
Trump’s unpredictable approach to tariffs, targeting major partners like China, Canada, and Mexico, has caused significant market instability and shaken investor confidence in U.S. markets.
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