Trump Said a Trade Deal with China Was Coming… China Said “That’s News to Us”

Yesterday, the big reason stocks jumped for the second day in a row was because Trump and his administration were practically shouting from the rooftops “We’re definitely talking to China! Huge deal coming! It’s gonna be the most beautiful deal you’ve ever seen!” Kind of a “you give in a little, so will I” vibe. But it turns out that wasn’t true. At all.

This morning less than 24 hours later, China walked out with a mic and pretty much said, “Yeah, we’re not talking to them.” In case anyone missed it, Ministry of Commerce spokesperson He Yadong told reporters, “There are absolutely no negotiations on the economy and trade between China and the U.S.” That sound you just heard was every trader and investors collectively rolling their eyes and saying “here we go again.”

Again, this is right after Trump and Treasury Secretary Scott Bessent hinted at a possible handshake in the tariff war, giving investors hope that maybe the two biggest economies in the world wouldn’t drag us by our toes into a recession because of ego.

Bessent had been out here talking about a “big deal” on the horizon, saying things like “both sides are waiting to speak to the other.” Which, in hindsight, sounds a lot like “they left me on read, but I know they’re thinking about me.” Even Trump himself said we’d be “very nice” in future negotiations. He told reporters the current 145% tariffs “will come down substantially.” On the other hand, his press secretary ran a full denial sprint, telling Fox News there would be “no unilateral reduction in tariffs.”

And then China really iced the cake. The Foreign Ministry echoed that there were zero active discussions, and that if the U.S. wants to start talking, they can start by canceling the tariffs. All of them. “The person who tied the bell must untie it,” said He Yadong. From Beijing’s point of view, there’s no incentive to rush to the table.

Oh, and in case anyone forgot how messy this got, China’s already started rejecting Boeing planes and threatening countermeasures against U.S. allies that try to make side deals. Some Chinese economists have made it clear… unless the tariffs come down, this stays a standoff. A loud, painful, awkward standoff.

So yes, stocks rallied on the idea of a trade deal. But as of now, that’s all it is… an idea. One that China publicly lit on fire and tossed back over the wall.

PS: The headlines are full of panic… inflation’s too high, the Fed’s asleep at the wheel, and Trump never fails to kill any market momentum with more tariffs. On the surface, it looks like the market’s barely breathing.

But underneath all that noise?

We’re seeing some of the fastest stock moves in years… especially in the small-cap space, where low float and high tension can trigger a 100% pop before lunch. Some are up 200% in under 24 hours… and nobody on CNBC is talking about them.

Except us.

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Stock.News does not have positions in companies mentioned.