Trump and Xi just had their first call—and China’s already calling Trump a liar about what was discussed.
In a stunning display of international drama, former President Donald Trump announced he had a productive phone call with Chinese President Xi Jinping about reducing tariffs, only for Chinese officials to immediately label the claim “fake news.” This high-stakes disagreement reveals the fragile nature of US-China relations as Trump prepares to return to office. With both countries imposing punishing tariffs—Trump at 145% and China retaliating at 125%—global markets are on edge. Meanwhile, Trump’s team sends mixed messages about whether tariff reductions are even on the table, leaving American consumers and businesses caught in the crossfire of this diplomatic chess match.
Trump Claims Progress While China Denies Everything
The diplomatic dance between the world’s two largest economies has taken a bizarre turn. Trump proudly announced that he and Xi had an “active” discussion about trade issues, suggesting tariffs on Chinese goods would “come down substantially.” This optimistic declaration sent momentary ripples through global markets. However, before the champagne could even be uncorked, Chinese Foreign Ministry Spokesperson Guo Jaikun bluntly rejected Trump’s characterization, calling it “fake news” and denying that any formal trade talks had begun.
This immediate contradiction exposes the theatrical nature of international diplomacy under Trump’s return. Treasury Secretary Scott Bessent attempted to thread the needle by simultaneously criticizing China’s trade practices while expressing willingness to negotiate, calling a potential agreement a “big deal.” Meanwhile, White House Press Secretary Karoline Leavitt contradicted her boss by stating there would be “no unilateral reduction” in tariffs. It’s almost as if the left hand doesn’t know what the far-right hand is doing.
Analysis: China Exempted Tariffs on U.S. Chip Imports amid Peaked U.S.-China Trade Tension
– A cautious olive branch by Beijing and behind-the-scene negotiation/coordination has started. Is "off-ramp" engagement coming soon?https://t.co/dMxVbHlcIg
On the morning of 24th, I… https://t.co/YRtcb17kZU
— Ray Wang (@rwang07) April 25, 2025
A Trade War That American Consumers Are Losing
While the political elites play their games of denial and contradiction, everyday Americans are getting hammered with higher prices. The current trade standoff has escalated to absurd levels, with Trump increasing tariffs on Chinese goods to 145%, and China retaliating with 125% tariffs on American products. This isn’t “winning” – it’s making everything from electronics to household goods significantly more expensive for American families already struggling with inflation caused by years of reckless Democrat spending and money printing.
Economic experts warn that Trump’s aggressive tariff stance has caused market volatility and triggered recession warnings. It’s like watching someone try to put out a fire with gasoline. The harsh reality is that while politicians posture, it’s the American consumer paying the price tag for this economic showdown. China, meanwhile, is playing the long game, restricting exports of crucial rare earth elements needed for everything from smartphones to military equipment, while still allowing just enough through government-approved channels to maintain leverage.
Is China Playing Trump?
The most concerning aspect of this international soap opera is the perception that China holds the upper hand in this standoff. Experts suggest that Chinese officials see Trump as vulnerable, which explains their brazen contradiction of his statements. While President Xi publicly expresses hope for a “good start” to relations in Trump’s new term, behind the scenes, China appears to be waiting for the U.S. to blink first by reducing tariffs before engaging in serious negotiations.
This calculated approach reveals how China has evolved its strategy since Trump’s first term. They’re no longer reactive but methodically strategic. By allowing Trump to make claims they can then publicly refute, they’re testing his resolve and setting the stage for negotiations where America might give up more than it gains. Trump’s team is reportedly considering slashing China tariffs to 50-65%, which would be a significant concession without guaranteed reciprocity from Beijing.
Where Do We Go From Here?
As this diplomatic drama unfolds, one thing is crystal clear: American interests must come first in any negotiation with China. The Communist regime in Beijing has demonstrated time and again that they will say one thing while doing another. Their human rights abuses, intellectual property theft, and currency manipulation haven’t magically disappeared since Trump left office in 2021. If anything, they’ve become more emboldened under Biden’s weak leadership.
Trump’s tough stance on China was one of the highlights of his first administration, forcing Beijing to recognize that business as usual was over. But a tariff war alone isn’t a comprehensive strategy. What America needs is consistent policy that protects our industries, workers, and consumers without subjecting them to wild price fluctuations based on diplomatic mind games. The Constitution puts American sovereignty and prosperity first—and any deal with China that doesn’t deliver that isn’t worth the paper it’s written on.
