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US-China Trade War: Can a ‘Reset’ Benefit the Trump Administration?

May 11, 2025, 5:28 pm

On May 11, the highest authorities of the US and China held talks in Geneva to resume negotiations to ease the current trade war. The negotiations followed months of the imposition of tariffs and growing global economic uncertainty.

President Donald Trump later hinted at a “total reset” of US-China relations. Nevertheless, the question still remains as to whether the talks will lead to actual change or serve the interest of the Trump administration.

Location and Timing of Talks

The negotiations were conducted at a villa overlooking Lake Geneva. The meeting was hosted in Switzerland after US and Chinese officials paid a visit to the country. The neutral location underscored the diplomatic significance of the negotiations.

The two sides, however, maintained secrecy over details of the negotiations, and many are wondering if they will yield any tangible outcomes.

Trump’s Optimistic Tone: A New Chapter in Relations?

Following the meeting, Trump reported a rosy scenario. He described the talks as “friendly, but constructive” and reiterated the objective of opening China to more American business. Trump indicated progress without detailing any agreements. His enthusiasm in viewing the talks as successful is a testament to the administration’s efforts to demonstrate good results from the negotiations.

Even though he sounded optimistic, experts advise against over-reading Trump’s statement. The trade war is complicated, and making major breakthroughs in the near future continues to be unlikely.

China’s Advantage in the Trade War

China went into the negotiations confidently. Chinese exports to Southeast Asia increased despite the trade war, according to reports, which means that China had mitigated the effects of US tariffs. Analysts think that China is in a better position to weather the trade war due to its vast domestic market and diversified exports.

Gary Hufbauer, a Peterson Institute for International Economics expert, said Chinese leaders are better equipped to weather long-term economic stress. US officials, such as Treasury Secretary Scott Bessent, meanwhile, are facing increasing pressure at home.

Skepticism Surrounding the Talks

Prior to the Geneva gathering, Trump proposed lowering tariffs. Yet, experts are still doubtful about the long-term effect of the talks. While the US-UK trade negotiations generated optimism for sector-specific relief, US-China negotiations have more daunting challenges. Citigroup’s Nathan Sheets noted that significant breakthroughs are not likely, considering the profound differences between the two powers.

Although Trump’s optimism prevails, most experts concur that the war of trade is not yet finished. Any re-start may be in vain and will not solve the underlying economic problems.

Will Trump Benefit?

The Geneva US-China discussions can signal a change in tone, but it’s not clear if they will have substance. Trump is keen to display progress, but considerable obstacles are in the way. China’s robust export performance and clever positioning position it well for these negotiations. Whether this new start works out for the Trump administration hinges on whether it can achieve long-term modifications in trade behavior that will benefit both economies in the long term.

The US-China trade war is not yet over. Although a reset can be done, its success is uncertain.

Trump Declares ‘Total Reset’ in US-China Trade After Talks in Geneva

May 11, 2025, 1:14 pm

US President Donald Trump announced a “total reset” in the US-China trade relationship after significant talks in Geneva, Switzerland. The more than 10 hours long talks involved US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng.

Although there was no official deal, both sides have decided to continue the talks. Their objective is to alleviate the trade tensions that have shaken global markets.

A Constructive Dialogue

President Donald Trump described the meeting “very good” and “constructive,” highlighting significant progress. He was optimistic about opening greater American business access to China, thinking it would be good for both countries. The President’s words indicate a change of direction toward more cooperative engagement in US-China relations. In the future, both parties appear concerned with cooperation rather than confrontation.

While the meeting was positive in atmosphere, it did not result in concrete agreements. The large tariffs, in which the US puts a 145% tariff on Chinese goods and China retaliates with a 125% tariff, are still in effect. The Trump tariffs are still putting strain on the economic relationship. That said, the two nations have agreed to further talks, indicating that they would like to agree. This willingness to continue negotiation indicates that perhaps the two nations are seeking resolution, even with no immediate break-throughs occurring.

Implications for Global Trade

The negotiations between the US and China have far-reaching implications for international trade. A settlement of the trade war could result in market stabilization and a more stable global trade environment. With the two largest economies negotiating, the entire global international market is paying attention to these events.

An effective resolution could lead to better, more stable trade relations for both nations and the world economy.

New Era in US–China Trade Relations

Overall, the Geneva talks represented a critical turning point for US-China trade relations. While the negotiations did not bear fruit in terms of quick agreements, the pronouncement of a “total reset” signals the possibility of a change in economic dynamics between the two nations. The sustained focus on dialogue is a hopeful indication of an increased balanced and collaborative partnership. Both countries appear ready to put the tense phase of trade wars behind them and work towards rebuilding a positive economic relationship for the future.

As negotiations continue, international observers are optimistic that a resolution will open the door to greater stability in global trade. The world now closely observes whether the reset will result in a more harmonious global economy.

Trump Considers Lowering Tariffs to Secure TikTok Deal

March 27, 2025, 5:35 am

US President Donald Trump announced on Wednesday that he might consider reducing tariffs on China to finalize a deal concerning the Chinese-owned social media platform, TikTok. Speaking to reporters, Trump said, “With respect to TikTok, and China is going to have to play a role in that, possibly in the form of an approval, maybe, and I think they’ll do that. Maybe I’ll give them a little reduction in tariffs or something to get it done.”

Deadline Extension Possible if No Agreement Reached

Trump also hinted that he might extend the deadline for a deal if no agreement is reached within the stipulated time. While details of the extension were not disclosed, the move reflects Trump’s willingness to negotiate with China over the controversial app to avoid an outright ban.

China’s Role in the TikTok Deal

China’s approval is likely necessary for any deal involving TikTok. Trump acknowledged that China’s involvement could play a decisive role in securing the agreement, making a tariff reduction a potential bargaining chip to ease tensions between the two nations.

TikTok’s US Operations Under Scrutiny

The US government has raised concerns about data privacy and national security risks associated with TikTok’s operations in the United States. As a result, Trump has been pushing for a deal to transfer TikTok’s US operations to an American company, with companies like Oracle and Walmart previously expressing interest.

Potential Impact on US-China Relations

A possible reduction in tariffs could help ease trade tensions between the United States and China, but it remains unclear if both nations can reach a mutually acceptable agreement. If successful, the move could strengthen diplomatic ties and provide a solution to the ongoing TikTok controversy.

Trump to Announce Reciprocal Tariffs Next Week

February 8, 2025, 4:31 am

Former US President Donald Trump has announced plans to introduce reciprocal tariffs next week in a bid to equalize trade relations with international partners. The move, which he revealed during a meeting with Japanese Prime Minister Shigeru Ishiba, is expected to impact multiple sectors, including automobiles, steel, and pharmaceuticals.

What Are Reciprocal Tariffs?

Reciprocal tariffs mean that if a country imposes duties on US-made goods, the US will apply the same tariff rate on imports from that country. Trump emphasized that this approach ensures fair treatment for American businesses and workers.

“We don’t want any more or any less. If they charge us, we charge them,” Trump stated in the Oval Office.

Impact on Global Trade and Key Sectors

Trump’s tariff policy could impact major US trading partners, including the European Union, Canada, and China. He specifically mentioned that automobile tariffs were under consideration, a move that could affect European and Japanese car manufacturers.

Other potential targets include:

Steel and aluminum industries
Pharmaceuticals
Oil and energy sectors

Trade War Strategy: Tariffs as Leverage

Trump has long used tariff threats as a negotiation tool to secure better trade deals. His administration has previously considered:

A 10-20% universal import duty
Tariffs targeting specific industries
Using trade policies to push for border security and drug control measures

His recent decision to delay 25% tariffs on Canada and Mexico raised doubts about his commitment to following through on such measures. However, he has already imposed 10% tariffs on China, though some consumer goods were exempted.

A Shift in US Trade Policy?

While Trump previously proposed a flat universal tariff, he now suggests that reciprocal tariffs are a fairer approach.

“I think that’s the only fair way to do it. That way, nobody’s hurt,” he said.

A formal announcement is expected early next week, with a press conference scheduled for Monday or Tuesday.

US Faces Economic Risks in Three-Way Trade War

February 6, 2025, 3:07 am

The United States and China have entered a new phase of their ongoing trade war, with tariffs escalating and economic tensions rising. However, experts warn that the conflict may expand beyond China, potentially dragging Mexico and Canada into a three-way trade war that could significantly damage the US economy.

Escalating US-China Trade Dispute

The current conflict began when the US imposed a 10% tariff on all Chinese goods, prompting China to retaliate with tariffs of 10% to 15% on select American products, including:

Coal, crude oil, and liquefied natural gas
Agricultural machinery
Large-displacement cars

In a more aggressive move, China has also blacklisted two major US companies, Illumina and PVH Group (owner of Calvin Klein and Tommy Hilfiger), limiting their ability to operate in the Chinese market.

Economic Risks for the US

The US’s tariff strategy could lead to higher prices for American consumers on a wide range of products, including:

Electronics, clothing, and toys
Raw materials like rubber, plastic, and chemicals

Higher costs may also hurt American businesses, potentially leading to job losses and supply chain disruptions. Morgan Stanley economists predict that if further tariffs are imposed, China could retaliate with even harsher trade restrictions, worsening the economic outlook.

Three-Way Trade War: The Bigger Threat

Beyond the US-China conflict, experts warn of a wider trade war involving Mexico and Canada. Citibank economists predict that:

The US economy could shrink by 0.8% this year and 1.1% next year
China’s economy would be impacted less, despite facing heavy tariffs
Mexico and Canada could suffer greater economic losses than the US

China Urges Diplomacy With Rubio, Cites Constructive Relations In First Call Under Trump Presidency

January 25, 2025, 1:37 am

Chinese Foreign Minister Wang Yi spoke on Friday to his US counterpart Secretary of State Marco Rubio, a meeting that represents the first direct exchange between the two since the start of President Donald Trump’s second term. In the telephone call, Wang underscored the significance of Sino-US ties saying that the course and tenor of their diplomatic relations had already been set by their respective leaders.

Wang implored Rubio, an open critic of China, to act positively in enhancing cordial relations between the two countries. “I hope you would conduct yourself well and play a constructive role in the future of the Chinese and American people and in world peace and stability,” Wang remarked. Rubio had said in Senate confirmation hearings last week that China is the “gravest threat” to the US, setting up the tense state of the two nations.

China’s Foreign Ministry said Wang also stressed the importance of both sides working together to maintain communication, manage differences, and promote the stable development of their relationship. This comes after President’s Xi Jinping and Trump agreed to set up a strategic communication channel on major issues in a recent phone call.

It’s amid growing anxieties over US trade policies and China’s part in the fentanyl trade- President Trump had proposed a potential 10% duty on Chinese imports. But even more worrisome was Taiwan, tensions surrounding which kept relations strained. Wang reiterated Beijing’s position that Taiwan is an inalienable part of Chinese territory and vowed not to accept anything to separate it from the motherland.

Both countries continue to walk a delicate diplomatic tightrope, balancing cooperation with growing areas of contention.

Xi Jinping Unlikely to Attend Trump’s Inauguration

December 13, 2024, 8:04 am

Chinese President Xi Jinping is unlikely to attend US President-elect Donald Trump’s inauguration on January 20. Although Xi received an invitation, two sources told agencies that he is not expected to participate.

Chinese Officials to Represent Beijing

However, China’s ambassador to the US and his spouse will attend the event, following standard diplomatic protocol. Additionally, other officials from Beijing may join them. Meanwhile, inauguration officials have assigned staff to handle diplomatic arrangements for foreign dignitaries during the ceremony.

Silence from Both Sides

So far, the Chinese embassy in Washington has refused to comment on Xi’s plans. Similarly, Trump’s transition team has not responded to inquiries about the matter, CBS News reported.

Trump Talks About Relations

Meanwhile, Trump shared his thoughts on US-China relations during a statement on Thursday. He remarked, “We have a good relationship with China. I have a good relationship. We’ve been talking and discussing with President Xi some things.” However, he did not provide further details or address Xi’s possible attendance at the inauguration.

Rising US-China Tensions

At the same time, the invitation comes amid increasing tensions between the two countries. Recently, US intelligence revealed a large-scale cyberattack on eight American telecom companies. Investigators believe Chinese hackers accessed metadata affecting millions of Americans, including Vice President-elect JD Vance.

Overall, the strained relationship between the US and China underscores the challenges the Trump administration will face in managing diplomatic ties.

US-China Ties in Focus: Biden, Xi Stress Collaboration at APEC

November 17, 2024, 7:33 am

President Joe Biden met Chinese President Xi Jinping on Saturday during the APEC summit in Peru. This marked their final meeting before Donald Trump assumes the presidency.

Xi Stresses Cooperation

Xi Jinping expressed China’s willingness to collaborate with the new Trump administration. He emphasized the need for communication, increased cooperation, and managing differences.

Xi stated, “China is ready to work with the new US administration to maintain communication, expand cooperation and manage differences, to strive for a steady transition of the China-US relationship for the benefit of the two peoples.”

He also reaffirmed China’s goal of maintaining a stable and healthy relationship. “China’s goal of a stable, healthy and sustainable China-U.S. relationship remains unchanged,” Xi said.

Trade Tensions Take Center Stage

The meeting followed Trump’s announcement of plans to impose a 60% tariff on Chinese goods. He also proposed tariffs of 10-20% on all imports. According to reports, Chinese officials expressed a desire to avoid a trade war. They also highlighted their focus on stabilizing global production and supply chains.

Highlighting the Importance of Partnership

Xi underlined the benefits of US-China cooperation. He warned against treating each other as adversaries.

Xi stated, “When the two countries treat each other as partner and friend, seek common ground while shelving differences and help each other succeed, our relationship would make considerable progress. But if we take each other as rivals or adversary, pursue vicious competition, and seek to hurt each other, we would roil the relationship or even set it back.”

Biden Calls for Stability

Biden urged Xi to maintain a steady relationship with the US. He stressed that competition should not escalate into conflict.

Biden said, “We are the most important alliance – or the most important relationship in the entire world, and how we’re getting along together can impact the rest of the world. And so our two countries can not let any of this competition veer into conflict. That’s our responsibility and over the last four years I think we’ve proven it’s possible to have this relationship.”

Trump Prepares for Leadership

Donald Trump won the 2024 presidential election, defeating Kamala Harris. He secured 295 electoral votes, while Harris received 226.

Since his victory, Trump has moved quickly to form his foreign policy and national security team. His plans for tariffs and foreign policy shifts will likely impact US-China relations.

The Biden-Xi meeting highlighted the importance of dialogue and cooperation. However, Trump’s upcoming presidency and proposed trade policies could reshape this critical relationship. Both nations face significant challenges in maintaining stability while navigating new dynamics.

Xi and Biden Warn Of ‘Turbulent Future’ Amid Trump’s Shadow At APEC Summit

November 16, 2024, 4:49 am

At the Asia-Pacific Economic Cooperation (APEC) summit in Lima, Chinese President Xi Jinping and U.S. President Joe Biden delivered stark warnings about a turbulent global future. With Donald Trump’s return to the White House imminent, both leaders highlighted growing economic and geopolitical challenges.

Xi’s Warning Against Protectionism

Xi Jinping expressed concerns about rising unilateralism and protectionism. In a written address at an APEC CEO meeting, he warned of the dangers of a fragmented global economy, emphasizing the need for inclusive growth.

Biden’s Call for Strong Alliances

Joe Biden, meanwhile, underscored the importance of alliances, meeting with Japan and South Korea’s leaders. He emphasized the trilateral partnership’s durability amidst significant political changes, calling for unity in countering challenges like North Korea’s military ambitions and its cooperation with Russia.

Trade Wars Loom Large

The summit’s agenda, focusing on trade and investment, was clouded by Trump’s protectionist stance. His proposed tariffs of up to 60% on Chinese imports threaten not only U.S.-China relations but also the global economy. Economists warn such policies could disrupt trade and stability.

Trump’s ‘America First’ Approach

Trump’s return to power signals a shift towards protectionist trade policies and reduced international cooperation. This stance could undermine Biden’s efforts to address global issues like climate change and regional conflicts.

Geopolitical Tensions Heighten

The summit also highlighted rising tensions in the Asia-Pacific region. China’s increasing military presence and its claims over Taiwan add to the geopolitical strain, while Trump’s proposed tariffs on Mexico and other economies further complicate international relations.

The Path Ahead

As Biden and Xi prepare for their final official meeting, U.S. National Security Advisor Jake Sullivan emphasized the need to manage U.S.-China competition carefully to avoid conflict. The APEC summit, representing 60% of the world’s GDP, stands at a crossroads, with global stability hanging in the balance.

Chinese Internet Users Expect Strained US-China Relations Under Trump’s Second Term

November 8, 2024, 12:35 am

Following Donald Trump’s decisive win in the U.S. presidential election, Chinese internet users expressed concerns about a potential increase in trade tensions between the U.S. and China. According to a Voice of America report, Trump had consistently vowed during his campaign to impose tariffs on Chinese goods ranging from 60 to 200 percent. In a Fox News interview on February 4, he said he would enforce tariffs exceeding 60 percent on Chinese imports, though he clarified that he didn’t aim to start a trade war with China.

In another interview with The Wall Street Journal, Trump indicated he would impose tariffs of 150 to 200 percent on China should Beijing decide to “move into Taiwan.”

The report noted that many Chinese internet users expect Trump to follow through on his campaign pledges for substantial tariffs on Chinese imports, though views are mixed on the implications for China’s economy and everyday lives. Given China’s current economic slowdown, some social media users worry that Trump’s return to the White House could further strain finances for regular citizens.

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One internet user in Beijing posted on the popular platform Weibo, similar to X, “It’s hard to look at Trump’s victory with pure joy, because he is going to launch a trade war with China when he comes into power, and our economy will suffer further. How will the lives of normal citizens change? I’m feeling a sense of unease about the unpredictability of the future.”

As reported by Voice of America, some believe the proposed 60 percent tariff on Chinese imports to the U.S. could prompt Chinese companies to redirect their exports toward other markets, such as Southeast Asia, South America, and Europe.

While opinions differ among Chinese internet users on Trump’s proposed tariffs, analysts caution that such measures could deal a “significant blow” to China’s already struggling economy, which faces challenges such as a property crisis, high youth unemployment, and weak domestic demand.

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Jacob Gunter, a political economy expert at the Mercator Institute for China Studies, told VOA by phone, “This would mark a shift from a focused tech war to a broader trade war, with a far greater impact on China’s export-driven growth.” He suggested that Trump might use tariffs as a bargaining chip to press China for further trade concessions. In 2019, the Trump administration had imposed tariffs of up to 25 percent on $200 billion of Chinese goods, which eventually led to a trade deal where China pledged to increase its purchases of American goods by at least $200 billion.

“Economic and political tensions between the two countries will inevitably rise, while the global economy and global supply chains will be thrown into chaos,” said Zhiqun Zhu, a Chinese foreign policy expert at Bucknell University, in a written response to VOA. In his view, while Trump’s second term would likely be dominated by competition between the U.S. and China, there could still be opportunities for diplomacy and cooperation.

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