The global trade situation is further complicated by the contradictory statements of US and China.

In an interview published Friday, U.S. president Donald Trump claimed that tariff negotiations with China were underway, but Beijing denied there were any talks taking place. This is the latest of a series conflicting signals about what progress has been made in de-escalating a trade battle threatening to sap growth globally.

Trump told TIME that there were talks and that Chinese President Xi Jinping called him. He repeated this assertion to reporters on his way out of the White House to Rome, where he would attend the funeral for Pope Francis.

China responded in a statement from its foreign ministry posted by the Chinese embassy in the U.S., "China and the U.S. have NOT been in consultation or negotiations on #tariffs." "The U.S. shouldn't be creating confusion."

Speaking to reporters on Air Force One, Trump said that it would be great if China opened its markets to U.S. goods and that tariffs might help make this happen.

"Free China. "Let's go into China and work it," he said. "That would be fantastic. It would be great, but I am not sure I will ask for it. They don't want the door open.

Wang Yi, the Chinese Foreign Minister, said on Saturday that Beijing adheres to international rules regarding U.S. tariffs and will seek solidarity with other nations.

According to a Chinese foreign ministry statement, Wang stated that certain countries have their own priorities and engage in coercive and bullying transactions. They also provoke trade wars without any reason.

The back and forth adds to uncertainty about Trump's tariff policy. Not just in regards to China, but to the dozens countries that are scrambling to make their own deals, to reduce the heavy import taxes he imposed since reentering the White House.

His team of negotiators conducted what was a lightning round trade talks with the foreign officials that had swarmed Washington for the spring meetings the International Monetary Fund Group and World Bank Group.

While Trump officials, including Treasury Secretary Scott Bessent, touted signs of rapid progress many of their colleagues were more circumspect. The IMF's finance chiefs were sending home a renewed sense of urgency to reduce the risk posed by tariffs.

"I am walking away from these meeting with a clear understanding of what is at stake, and the risks for jobs, growth, and living standards around the world," Irish finance minister Paschal Donohoe said.

The meetings here... reminded of the need to reduce uncertainty in the coming weeks and months.

DE-ESCALATION

There were some signs of de-escalation, even though it was unclear whether a deal is being made to avoid the imposition in early July of higher tariffs.

Business groups claim that China has exempted certain U.S. pharmaceuticals from the steep tariffs it imposed on Chinese imports earlier this month.

A list of 131 categories of products that are allegedly being considered for exemptions is also circulating in some business and trade groups. The list includes chemicals, vaccines and jet engines. China has yet to publicly address the issue.

Bessent said that both sides view the current situation as unsustainable.

Trump told reporters in the White House that Japan was very near to signing a trade agreement. Analysts see this as a test case for other bilateral agreements, even though the talks may be difficult. Many expect Shigeru Shiba, the Prime Minister of Japan, and Donald Trump to announce an agreement when they meet in Canada at the Group of Seven summit in June.

Trump told TIME he made "200 deals", which he said would be finished in three to four weeks. He declined to give specifics. He said that he would be happy if tariffs remained between 20% and 50% in a year.

The president has claimed that his thickets of trade barriers would revive U.S. Manufacturing Industries that have been eroded by global competition.

The majority of economists warn, however, that this would increase prices for U.S. consumer and raise the risk of recession.

The U.S. stock market was on track to gain a week, even though it has been down about 10% since Trump took office in January. It is also lagging behind other indexes, and the dollar has dropped at an unprecedented pace.

Investors were encouraged by signs that the U.S. was willing to ease off its trade war with China. Wall Street's major indexes increased slightly as investors sought clarity on the U.S./China trade front.

Trump has imposed tariffs on imports from all countries, as well as a 10% blanket tariff. He also increased duties on autos, steel and aluminum.

He also proposed additional industry-specific taxes on semiconductors and pharmaceuticals. According to industry estimates, this could lead to a 12.9% increase in drug prices across the U.S.

The IMF meeting this week was dominated by discussions about Trump's tariffs. Finance ministers were vying for one-on-1 meetings with the U.S. Treasury secretary.

Bessent described the initial discussions with South Korea on Thursday as "very succesful". Seoul called it a "good beginning." Next week, further discussions will take place.

The Swiss government said that it was satisfied with the initial meeting between Bessent and Switzerland. The U.S. Trade Office said that it was "constantly engaging" with Japan and others countries but said Trump would decide whether or not they proceed.

The IMF's Kristalina Gheorgieva warned that there was no sign of progress in other countries despite her urging. She said this week that they could lead to a serious slowdown of global growth. Reporting by Bureaus Worldwide; Writing by Andy Sullivan, Dan Burns and Editing by Chizu Nomiyama, Marguerita Choy

(source: Reuters)