China made a small but notable move to ease tensions in its trade battle with the U.S. on Friday by waiving tariffs on select American goods. However, Beijing swiftly dismissed President Donald Trump’s claims that negotiations between the two countries were underway.

Read also: China Considers Exempting Certain U.S. Imports from 125% Tariffs

According to business groups, China has exempted some U.S.-made pharmaceuticals from its 125% retaliatory tariffs, offering limited relief amid escalating economic pressure. A circulating list—still unverified—suggests further exemptions could include items like vaccines, chemicals, and jet engines, though Chinese officials have yet to make a formal announcement.

Despite the tariff reprieve, China firmly denied any ongoing talks. “China and the U.S. are NOT having any consultation or negotiation on tariffs,” the Chinese Embassy in Washington posted on social media, directly countering Trump’s comments to TIME magazine that discussions had resumed following a call with President Xi Jinping.

Meanwhile, the Trump administration is pushing ahead with other trade actions. Broad tariffs on dozens of countries have been temporarily suspended until July 9, prompting a global scramble to negotiate bilateral deals. Trump pointed to talks with Japan as nearing completion, hinting at a potential agreement during the G7 summit in Canada.

Trump also told TIME that around “200 deals” were in the pipeline, though he offered few details. He suggested that even if tariffs stayed between 20% and 50% over the next year, he would still consider it a “total victory.”

Economists continue to warn that these widespread tariffs risk fueling inflation and pushing the U.S. economy toward a recession. Nevertheless, optimism over a possible easing in U.S.-China tensions lifted European and Asian markets for a second consecutive week, while the U.S. dollar posted its first weekly gain in over a month—even as Wall Street opened slightly lower.