China’s Ministry of Commerce (MOFCOM) issued a stern warning on Thursday, demanding that the United States be prepared to revoke its unilateral tariffs if it hopes to negotiate a trade agreement. MOFCOM spokesperson He Yadong emphasized that China will not compromise its principles or undermine international fairness and justice, stating, “If the US says one thing but does another, or uses negotiations as a pretext for continued coercion and extortion, China will never accept it.” He urged Washington to recognize the “serious negative impact” of its new tariff policy and to respect international trade rules.

The comments came ahead of the upcoming meeting between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng in Switzerland on May 10, where the two sides will discuss bilateral trade issues.

Meanwhile, the US Department of State announced sanctions on China-based Hebei Xinhai Chemical Group Co., Ltd., along with three other oil terminal operators, for purchasing and facilitating the delivery of hundreds of millions of dollars' worth of Iranian oil. Washington also imposed bans on additional firms, vessels, and captains involved in what it called the “shadow fleet” that transports Iranian oil to China. The US reiterated that Iran must not be allowed to generate oil revenues to fund destabilizing activities, promising continued enforcement of sanctions.

At the White House, President Donald Trump remarked that the current 145% tariff on Chinese imports “can’t get any higher” but hinted that levies might soon be reduced. Trump expressed optimism about the upcoming talks, highlighting a renewed positive relationship with Chinese President Xi Jinping, despite past tensions over Covid-19. “I think we are going to have a very good relationship,” Trump said, adding that he expects “very substantive” negotiations this weekend. Trump also mentioned the European Union, reaffirming the US’s desire for a trade deal, while media reports noted that the EU may target €95 billion worth of US imports if talks falter.