Beijing/Washington: China declared on Wednesday that it remains open to trade negotiations with the United States, following a notable shift in tone from U.S. President Donald Trump, who indicated that recently imposed 145% tariffs on Chinese goods could be reduced "substantially."

Amid global concerns over rising trade tensions and inflation, Trump’s remarks offered a dose of relief to jittery markets. “They will not be anywhere near that number,” Trump said, referring to the tariffs, while maintaining that a complete rollback was unlikely. “Ultimately, they have to make a deal because otherwise, they're not going to be able to deal in the United States,” he added.

In response, Chinese Foreign Ministry spokesperson Guo Jiakun emphasized Beijing’s willingness to engage: “China pointed out early on that there are no winners in tariff wars and trade wars. The door for talks is wide open.”

Chinese President Xi Jinping, echoing those sentiments, warned that trade conflicts “undermine the legitimate rights and interests of all countries” and destabilize the global economy, according to state media.

Markets React Positively
The rhetoric shift, alongside assurances from Trump that he has “no intention of firing” Federal Reserve Chair Jerome Powell, helped ease market anxieties. Wall Street saw gains, and major Asian indexes—including Tokyo and Hong Kong—climbed roughly 2%, while gold prices retreated from record highs as investors moved out of safe havens.

Markets were also buoyed by remarks from U.S. Treasury Secretary Scott Bessent, who said in a closed-door event that he anticipated a de-escalation of the tariff standoff and noted that the current duties resembled a “reciprocal trade embargo.” His comments at the JPMorgan Chase-hosted event, on the sidelines of the IMF and World Bank Spring Meetings, were later reported by attendees.

U.S. Maintains Pressure, But Softens Tone
Despite the hardline tariffs imposed since Trump’s return to the White House in January—including those over China’s alleged role in fentanyl trafficking—Washington now appears to be signaling flexibility in hopes of a broader bilateral trade deal.

White House Press Secretary Karoline Leavitt told reporters that progress toward an agreement was underway, stating the administration was “doing very well in respect to a potential trade deal with China.”

Bessent also emphasized that the goal was not to decouple from China but to push for fairer trade practices. He acknowledged a recent slump in container bookings between the two countries as tensions escalated.

Global Diplomatic Push
China has intensified diplomatic outreach, with Foreign Minister Wang Yi speaking with his British and Austrian counterparts to rally support for multilateralism and stable global trade. Meanwhile, Japan is reportedly planning a second visit by its tariffs envoy Ryosei Akazawa to Washington next week, amid speculation that Tokyo may offer concessions to reduce U.S. pressure.

As global finance ministers and central bank governors gather in Washington this week, all eyes remain on whether this shift in tone will translate into concrete steps toward de-escalation—or if it's just a temporary pause in a high-stakes economic standoff.