As global markets track escalating trade tensions, President Donald Trump expressed confidence Thursday that the U.S. could soon reach a new trade agreement with China. Speaking from Washington, Trump struck a hopeful tone despite ongoing friction.
“We’re going to make a deal. I think we’re going to make a very good deal with China,” Trump said.
“I think you will see we’ll make a very good deal with China.”
The remarks follow the White House’s decision to reinforce its “Liberation Day” tariff policy—placing a 90-day hold on tariffs for all countries except China. In contrast, tariffs on select Chinese goods have been reinstated with added intensity, potentially reaching as high as 245%.
While the administration defends the tariffs as a necessary response to China’s “retaliatory actions,” financial leaders are urging caution. JPMorgan CEO Jamie Dimon warned that the U.S. may be underestimating the risks of prolonged trade conflict and emphasized the need for renewed diplomatic efforts.
Trump Signals Trade Reset With More Than China
Trump’s statements Thursday suggest broader trade ambitions beyond just China. Speaking to reporters, he voiced confidence in reaching new agreements with the European Union and other major trade partners.
“I think we’ll have very little trouble making deals with Europe or anybody else,” he said.
This softer stance contrasts with Trump’s earlier criticism of the EU, which he previously accused of undermining U.S. economic interests. The shift follows a broad tariff rollout by the administration, which now imposes a 10% baseline duty on all imports. Countries with large trade imbalances—such as China, the EU, Japan, South Korea, Vietnam, and India—face even higher “reciprocal” tariffs.
Although Trump frames the tariffs as a necessary correction to decades of unequal trade, the economic consequences are mounting. Market volatility is rising, and several U.S. allies have started quiet diplomacy aimed at easing tensions. Economists warn that the ongoing uncertainty could drive inflation higher or push the U.S. economy closer to recession.
China Responds, Trade Talks Remain Stalled
China has responded by criticizing the U.S. approach as “extreme pressure” tactics and emphasized the need for mutual respect in any renewed negotiations. Chinese officials have said they remain open to dialogue—provided talks are conducted on equal terms.
Despite these overtures, the two nations remain at a stalemate. Each side appears to be waiting for the other to take the lead on restarting meaningful talks, leaving global markets uncertain as traders and policymakers await clear developments.
The U.S.-China trade standoff continues to ripple across global markets, straining supply chains and dampening investor sentiment. China’s recent moves—including reducing its holdings of U.S. Treasuries and exploring non-dollar trade settlements—highlight potential shifts in global economic alignments.
According to VanEck’s Head of Digital Assets Research, Matthew Sigel, China is exploring trade settlements using Bitcoin with Russia, signaling a possible pivot away from U.S. dollar dependence.
These developments reflect the broader consequences of the U.S.-China trade dispute, with implications for financial stability, currency dominance, and international trade structures.
Quick Facts
- President Trump anticipates a “very good deal” with China despite high tariffs
- China calls for mutual respect, denouncing U.S. pressure tactics
- Global markets remain volatile as trade negotiations stall
- China explores Bitcoin trade with Russia, signaling dollar alternatives
