U.S. President Donald Trump announced on Tuesday that he is anticipating a call from China regarding trade negotiations, just as punitive duties of over 100% are poised to take effect. However, key figures within his administration say that dialogue with the world's second-largest economy isn't currently a priority.

Following days of chaotic shifts in the financial markets triggered by Trump's aggressive tariff policies, stocks finally experienced a rebound. This recovery comes in the wake of a brutal sell-off that has erased trillions of dollars from global markets since last week.

Already, a 10% tariff on nearly all imports into the U.S. has been instituted, with additional tariffs of up to 50% on various trading partners expected to kick in on Wednesday. In response to these pressures, China has firmly rejected what it describes as "blackmail," vowing to "fight to the end" against the proposed 104% tariffs that would be imposed if they continue to impose "reciprocal" duties.

In a hopeful social media post, Trump remarked, "China also wants to make a deal, badly, but they don’t know how to get it started. We are waiting for their call. It will happen!" Despite this optimistic outlook, administration officials indicate that negotiations with China will take a back seat as focus shifts to discussions with allied trading nations.

White House economic adviser Kevin Hassett emphasized this pivot during an appearance on Fox News, stating, “Right now, we've received the instruction to prioritize our allies and our trading partners like Japan and Korea and others.” The administration is actively engaging with these key nations, which could be adversely affected by the extensive tariffs being rolled out.

Additionally, other countries such as Vietnam and Indonesia have reached out, proposing to reduce tariffs on certain U.S. imports. Trump’s chief trade negotiator, Jamieson Greer, informed Congress that while efforts to expedite tariff negotiations are underway, no specific timeline has been established. “The president has been clear, again, that he's not doing exemptions or exceptions in the near term,” Greer noted.

Facing this economic battleground, China is rapidly preparing for a prolonged trade struggle. Manufacturers of everything from tableware to flooring are now anxiously cautioning about profit margins and strategizing to relocate operations overseas. In light of growing external pressures, Citi has downgraded its 2025 GDP growth forecast for China from 4.7% to 4.2%.

In a specific industry challenge, chipmaker Micron announced that it would impose a tariff-related surcharge commencing on Wednesday, while U.S. clothing retailers revealed plans to delay orders and pause hiring. The impact is palpable: a pair of running shoes normally priced at $155, made in Vietnam, is expected to jump to $220 once Trump's 46% tariff kicks in.

Consumers, sensing the urgency, are stockpiling essentials. “I’m buying double of whatever—beans, canned goods, flour, you name it,” said Thomas Jennings, 53, as he navigated the aisles of a Walmart in New Jersey.

As tensions escalate further, China's Foreign Ministry took issue with remarks made by U.S. Vice President JD Vance during a recent Fox News interview, labeling them as "ignorant and impolite." Vance criticized the U.S. economic model for detrimental effects on American workers, stating, "We borrow money from Chinese peasants to buy the things those Chinese peasants manufacture."

With stakes this high, the coming days will likely shape the future of U.S.-China relations and the global economy as both nations navigate this turbulent chapter.