China’s Ministry of Commerce has responded to recent United States statements about trade negotiations. The ministry is evaluating the US’s willingness to discuss tariff issues.

A spokesperson confirmed that the US has shown interest in dialogue, but China expects the US to address unilateral tariff measures and correct past policies.

While the US has indicated a possible adjustment of tariffs, China questions the sincerity of US intentions without concrete actions to reverse these tariffs.

“Empty rhetoric or attempts to use negotiations as a pretext for coercion will not succeed with China,” the spokesperson said.

🔗 Source: Ministry of Commerce of the People’s Republic of China

🧠 Food for thought

1️⃣ Tariff wars demonstrate rapid ripple effects across integrated economies

The speed of economic impact from the current tariff situation reveals how tightly interconnected global supply chains have become in the modern era.

Shipments from China to the US have already plummeted by 60% since the tariff announcements, with a projected 35% drop in arrivals at the Port of Los Angeles 1.

China’s manufacturing activity contracted in April with the purchasing managers’ index (PMI) falling to 49.0, directly attributed to the impact of Trump’s tariffs on many products 2.

This immediate economic impact is occurring simultaneously on both sides, with the US economy shrinking by 0.3% in Q1 2025, marking the first decline in three years 1, while economists estimate China could see a 2.4% GDP decline in 2025 3.

The rapid transmission of economic pain demonstrates how deeply integrated the world’s two largest economies remain despite years of “decoupling” rhetoric, with businesses on both sides having limited short-term alternatives.

2️⃣ Economic history shows tariffs disproportionately impact consumers and small businesses

The current trade tension follows a pattern seen in previous protectionist periods, where tariffs intended to protect domestic industries create significant collateral damage.

Experts characterize the current tariffs as a “consumer tax” that raises prices disproportionately for everyday goods, with J.P. Morgan estimating consumer prices could rise 1-1.5% in 2025 4.

Small businesses are particularly vulnerable as they lack the scale to absorb increased costs or quickly pivot supply chains, similar to patterns observed during previous trade disputes 5.