Small businesses operate on narrow margins and lack the financial resources to absorb the cost of steep tariffs, Sen. Ed Markey said.

China exempted some U.S. imports from its steep tariffs in a sign on Friday that the trade war between the two countries could be easing, though China quickly knocked down U.S. President Donald Trump's assertion that negotiations were underway.

The Trump administration would look at lowering tariffs on imported Chinese goods pending talks with Beijing, a source familiar with the matter said on Wednesday, adding that any action would not be made unilaterally.

China has denied any suggestion it's in active negotiations with the administration of U_S_ President Donald Trump over tariffs, saying any notion of progress in the matter is as groundless as “trying to catch the wind.

China’s comments come after President Trump said Tuesday that the final tariff rate on China’s exports would come down “substantially” from the current 145 percent.