Trade Tensions: Decoding the Sino-American Tariff Tango

U.S. President Donald Trump claims ongoing tariff talks with China, contradicting Beijing's denial of such negotiations. As conflicting signals rise, the global economy faces uncertainty. Despite turbulence, signs of de-escalation emerge with China's tariff exemptions on U.S. goods, while looming discussions focus on minimizing trade war impacts globally.

U.S. President Donald Trump declared in a Friday interview that tariff discussions with China were underway, contrasting Beijing's insistence that no such talks were occurring. Trump's claims, including Chinese President Xi Jinping's alleged phone call, add to the confusion surrounding efforts to calm an escalating trade war threatening global growth.

Above Air Force One, Trump suggested a trade victory if China opens its markets to U.S. products. However, his unpredictable tariff policy has left over a dozen countries striving for new trade agreements amid an intense round of Washington-based negotiations during the IMF and World Bank spring meetings.

While some de-escalation signs exist, like China exempting specific U.S. imports from tariffs, significant uncertainties remain. Trump's assertive trade tactics aim to rejuvenate U.S. manufacturing, although economists caution against potential price hikes for consumers. Amid these developments, stock markets exhibit mixed reactions, reflecting ongoing trade tensions.

(With inputs from agencies.)