U.S. and China Harden Trade Standoff as Formal Talks Remain Elusive

Global markets brace for prolonged uncertainty amid diplomatic silence

Photo Bloomberg; Kyodo News/Getty/CNNMoney

As the world’s two largest economies face off in an increasingly entrenched trade dispute, a new phase of tension is emerging — one marked not by heated exchanges, but by an unsettling silence. With no formal negotiations on the horizon and conflicting accounts over whether back-channel talks are even occurring, the United States and China appear locked in a stalemate that could ripple across the global economy.

At a recent White House economic briefing, U.S. Treasury Secretary Scott Bessent deflected questions about President Trump’s claim that Chinese President Xi Jinping had recently called him. Rather than confirming or denying the communication, Bessent sidestepped: “I have a lot of jobs around the White House; running the switchboard isn’t one of them,” he quipped.

But behind the humor lies a serious diplomatic freeze. In Beijing, Chinese officials issued a rare public clarification. “China and the U.S. have not held consultations or negotiations on the issue of tariffs,” said Guo Jiakun, spokesperson for the Chinese foreign ministry, during a press briefing. “The United States should not confuse the public.”

The impasse signals a breakdown not just in dialogue but in trust — a concerning development for global investors, manufacturers, and consumers. With tariffs still in place and no clear roadmap to de-escalation, markets are left to speculate on whether any informal talks are happening behind closed doors, or whether both powers are simply digging in for a drawn-out economic cold war.

Analysts warn that the absence of diplomatic engagement, even at a discreet level, leaves little room for compromise. As both nations frame the conflict as a matter of principle — economic sovereignty for the U.S., national dignity for China — the prospect of a quick resolution grows dimmer.

For now, the message is clear: neither Washington nor Beijing is blinking. And without a reset in communication, the global economy could be the one paying the price.