The U.S. President signalled a shift when he said that tariffs will have to "come down substantially," writes Ryan Hass.

President Donald Trump asserted on Thursday that trade talks between the U.S. and China are underway, pushing back against Chinese claims that no discussions have taken place to ease the ongoing trade war.

The Trump administration has been saying that the two countries are engaged in talks to resolve the dispute, but Beijing asserts that no such discussions are happening.

China has exempted some U.S. imports from its 125% tariffs and is asking firms to identify critical goods they need levy-free, according to businesses notified, in the clearest sign yet of Beijing's concerns about the trade war's economic fallout.

The Chinese government made clear Thursday that no talks are happening with the U.S. about de-escalating the trade war, and called on the Trump administration to make the first move. Why it matters: Someone has to blink.