“We’re Talking to China”: Trump Claims Dialogue as Trade War Pushes Bitcoin Above $87,000

TLDR

Trump claims China initiated dialogue amid escalating trade tensions, with tariffs reaching up to 145% on Chinese imports China warns other nations against “appeasing” the US in trade talks, threatening countermeasures for deals made at its expense Reports suggest the US plans to pressure countries to restrict trade with China in exchange for tariff exemptions Markets showed mixed reactions with Bitcoin crossing $87,000 while stock futures dipped 0.5% Xi Jinping conducted a charm offensive in Southeast Asia, promoting China as a reliable trading partner in contrast to US tariff uncertainty

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The trade war between the United States and China has reached new heights, with President Donald Trump imposing tariffs of up to 145% on Chinese imports and China retaliating with 125% taxes on US goods. As tensions escalate, both countries are actively seeking allies in what has become a global economic showdown.

President Trump claimed last week that China has initiated contact multiple times to discuss the ongoing trade dispute. ”

Yeah, we’re talking to China. I would say they have reached out a number of times,”

Trump told reporters from the Oval Office. He even hinted that Chinese President Xi Jinping had personally attempted to speak with him.

Trump defended his tariff strategy on Truth Social, writing: “The businessmen who criticize tariffs are bad at business, but really bad at politics.” He added, “They don’t understand or realize that I am the greatest friend that American capitalism has ever had.”

Critics of Trump’s approach argue these tariffs will increase costs for businesses and consumers. They fear these measures will threaten jobs, reduce wages, and potentially shrink the US economy and household incomes.

Trump maintains that tariffs protect American jobs and boost domestic manufacturing. He believes they strengthen national security, generate government revenue, and encourage consumers to buy US-made products while reducing dependence on foreign imports.

Beijing Pushes Back Against “Appeasement”

China has taken a firm stance against countries that might align with the US at its expense. A Chinese Commerce Ministry spokesperson warned:

“Appeasement does not bring peace, and compromise does not earn respect.”

The spokesperson added, “China firmly opposes any party reaching a deal at the expense of China’s interests. If such a situation arises, China will not accept it and will resolutely take reciprocal countermeasures.”

These comments follow reports that the Trump administration plans to pressure US trading partners to limit their dealings with China. According to The Wall Street Journal, the US aims to extract commitments from countries to isolate China’s economy in exchange for reductions in US trade barriers.

The US reportedly wants countries to prevent China from shipping goods through their territories. They also want to stop Chinese firms from setting up operations in these countries to avoid US tariffs.

Global Reactions and Market Impact

Markets have shown mixed reactions to the trade tensions. Last week, the S&P 500 rose 0.52%, while the Dow Jones Industrial Average fell 0.89%. The Nasdaq composite slipped 0.44%, and the Russell 2000 gained 2.9%.

Crypto markets also displayed varying trends. Bitcoin crossed the $87,000 threshold, reaching $87,236 on Sunday evening. Meanwhile, other cryptocurrencies like ETH, ADA, and XRP declined in value.

Bitcoin Price on CoinGecko

Gold prices increased by about 3.8% against the US dollar last week. This rise confirms gold’s status as a traditional safe haven during times of economic uncertainty.

US equity futures showed a modest retreat on Sunday evening. Contracts tied to the Dow, Nasdaq composite, and S&P 500 all dipped by 0.5%.

Since Trump’s return to the White House in January, he has imposed hefty taxes on Chinese imports. Other countries have also been hit with levies on their goods, though Trump has paused many of these tariffs for 90 days for all countries except China.

Trump has stated that over 70 countries have reached out to start tariff negotiations. Japan began talks last week when its top tariff negotiator met with Trump in Washington. South Korea is set to begin discussions this week.

US Vice President JD Vance is expected to meet with India’s Prime Minister Narendra Modi during a visit to India. India faces a potential 26% tariff rate if it cannot reach a trade agreement with the Trump administration.

Vance also mentioned last week that there is a “good chance” of reaching a trade deal with the UK. “We’re certainly working very hard with Keir Starmer’s government,” he said in an interview.

Countries now face the difficult task of balancing their relationships with both economic superpowers. Jesper Koll from Monex Group noted that “about 20% of Japan’s profitability comes from the United States, about 15% comes from the People’s Republic of China. Certainly, Japan doesn’t want to [have to] choose between America and the People’s Republic of China.”

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