• President Donald Trump said tariffs were not brought up during two days of talks with Chinese leader Xi Jinping.
  • The comment came despite ongoing trade tensions and tariff policies that continue to affect bilateral relations.
  • Markets remain sensitive to any hints of tariff changes, as negotiations between the world's two largest economies evolve.

Trump's Statement Aboard Air Force One

President Donald Trump told reporters aboard Air Force One that tariffs were not discussed during his recent meetings with Chinese leader Xi Jinping. "We didn't discuss tariffs," Trump said, while noting that China continues to pay "substantial tariffs." The revelation comes as a surprise, given that tariff policy has been a central lever in U.S.-China trade relations for years.

Background on Trade Talks

The two-day talks in 2025 occurred against a backdrop of intermittent negotiations and shifting tariff postures. Both sides have employed tariffs as a tool in broader discussions about trade imbalances, supply chains, and technology controls. Even when tariffs are not explicitly on the agenda, they remain an implicit backdrop to strategic dialogues.

According to people familiar with the matter, the meetings covered a range of issues, but the absence of tariff discussions suggests a tactical decision to focus on other areas. A person close to the administration said "trade was discussed broadly, but the tariff line didn't come up specifically."

Market and Economic Implications

Markets have reacted cautiously to the news, with investors parsing signals about the direction of U.S.-China economic policy. Tariffs influence everything from import costs to corporate supply chains, and even a temporary pause in discussions can affect expectations. The S&P 500 edged lower in early trading as traders weighed the implications of the statement.

Economists warn that the lack of progress on tariffs could prolong uncertainty for businesses reliant on cross-border trade. "Without a deal, the cost structure for many industries remains uncertain," said one analyst who tracks trade policy. Consumer prices and inflation expectations could also be affected if tariff levels remain elevated.

Political and Diplomatic Context

The U.S. has long framed tariff policy as part of broader efforts to address national security concerns and trade imbalances. China, in turn, has resisted pressure on strategic sectors while seeking to maintain economic stability. Public statements from both governments have often diverged on the substance of negotiations, complicating efforts to gauge progress.

Efforts to reach the Chinese embassy for comment on Trump's remarks were not immediately successful. A spokesperson for the U.S. Trade Representative declined to comment on the specifics of the discussions.

Industry Reactions

Business groups have expressed frustration with the lack of clarity on tariff policy. "Companies need predictability," said a representative from a manufacturing trade association. "Every time tariffs are off the table, it helps, but without a commitment, we're just in a holding pattern."

In the tech sector, which has been heavily affected by export controls and tariff disputes, executives are watching for any signs of a shift. The outcome of discussions is likely to affect investment decisions in semiconductor and supply chain operations.

Looking Ahead

Short-term, markets will remain sensitive to any new statements that hint at tariff adjustments or renewed negotiations. The risk of sudden policy shifts remains if talks stall or take a more confrontational turn. Long-term, a durable resolution would require broader alignment on trade rules and market access, not just tariff changes.

Correction: An earlier version of this article misstated the location of Trump's remarks. They were made aboard Air Force One, not at the White House.