By George Glover

State media signaled Thursday that China may be open to entering trade talks with the U.S., boosting hopes that the world's two largest economies will be able to strike a deal on tariffs.

Any signs that trade tensions are easing would be good news for investors, given that listed companies' costs could soar if the duties remain in place. Futures tracking the benchmark S&P 500 index were up 1.3%.

Here's the latest on tariffs.

State Media Hints China Is Open to Trade Talks

Beijing and Washington have been locked in a game of "he said, she said" over the past month, with each side claiming that the other has reached out to discuss scaling back levies.

But Yuyuan Tantian, a social-media account that is affiliated with the state broadcaster CCTV, hinted that those tensions are thawing. "If the United States wishes to engage with China, there is no harm to China at this stage, and China needs to observe and even force out the true intentions of the U.S. side, and grasp the initiative to talk and fight, " it said in a post on the blogging platform Weibo.

The account also said that the U.S. had "taken the initiative to contact China through multiple channels in hopes of negotiating with the Chinese side on tariffs," citing unnamed sources. The Trump administration didn't immediately reply to a request for comment from Barron's.

The White House announced a 145% levy on imports from China, although it later gave some tech hardware products a temporary reprieve. President Donald Trump said last week that the 145% rate would come down "substantially" if the two sides were able to negotiate a deal.

Trump Strikes Ukraine Minerals Deal

China isn't the only country the Trump administration is trying to broker a deal with. Officials reached an agreement on Wednesday that will give the U.S. access to Ukraine's mineral wealth.

Treasury Secretary Scott Bessent said the deal would help bring an end to the war between Ukraine and Russia. "This agreement signals clearly to Russia that the Trump Administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term, " he said in a statement.

Defense stocks were barely moving ahead of Thursday's opening bell, suggesting investors don't expect Russian President Vladimir Putin to come to the negotiating table just yet. Shares in Honeywell and Lockheed Martin were flat, while RTX slipped 0.4%.

Write to George Glover at george.glover@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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May 01, 2025 07:10 ET (11:10 GMT)

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