Global Economy Held Hostage by U.S.-China Trade Tensions

U.S. President Donald Trump claimed progress in tariff talks with China, though Beijing denies any negotiations are ongoing. This conflicting narrative adds to global uncertainty about the trade war's impact on economic growth. Meanwhile, international finance leaders express concerns about risks to jobs and global living standards.

In a dramatic turn of events, U.S. President Donald Trump announced that tariff negotiations with China were underway, while Chinese officials flatly denied any such discussions. This discordant narrative further escalates uncertainty over the potential resolution of the ongoing trade war that threatens to stifle global economic growth.

President Trump asserted to TIME magazine and reporters at the White House that Chinese President Xi Jinping had contacted him, a claim sharply contested by China's foreign ministry. The ministry stated, "The U.S. should stop creating confusion," asserting that no talks were taking place.

Amidst this political drama, global finance leaders expressed concerns over the looming economic fallout. Irish Finance Minister Paschal Donohoe emphasized the serious risks to jobs and growth worldwide, calling for significant efforts to mitigate looming uncertainties at a series of meetings in Washington.

(With inputs from agencies.)