Overview

• China's Commerce Ministry confirmed it is assessing U.S. overtures for trade talks, marking the first formal acknowledgment of potential negotiations since the tariff escalation began.
• Beijing has made clear that any progress hinges on the U.S. canceling its 145% tariffs on Chinese goods, which it describes as unilateral and insincere practices.
• China has exempted $40 billion worth of U.S. imports from its retaliatory 125% tariffs, suggesting economic pressures are influencing its approach.
• U.S. officials, including Treasury Secretary Scott Bessent, have expressed optimism about a resolution, citing China's slowing economy and the unsustainability of the trade war.
• Both nations continue to publicly dispute who initiated outreach, with China rejecting President Trump's claim of a direct call from President Xi Jinping.