The ongoing US-China trade war has escalated as President Donald Trump and Chinese President Xi Jinping prepare for crucial talks. The discussions come just hours after both nations imposed new tariffs, further intensifying tensions between the world’s two largest economies.
Fresh Tariffs Escalate Trade War
Beijing announced new levies on US energy, vehicles, and industrial equipment, responding to Washington’s additional 10% tariffs on Chinese goods. Trump, who had earlier paused tariffs on Mexico and Canada for 30 days, justified the move as a measure to counter China’s alleged role in fentanyl distribution.
White House Press Secretary Karoline Leavitt confirmed that Trump was expected to speak with Xi but did not disclose the exact timing of the conversation.
China’s Countermove and WTO Complaint
China retaliated by imposing:
- 15% tariffs on US coal and liquefied natural gas (LNG)
- 10% duties on crude oil, agricultural machinery, and pickup trucks
- Export restrictions on rare metals like tungsten and molybdenum, crucial for industrial manufacturing
Beijing also announced a probe into US tech giant Google and a major American fashion brand. Furthermore, China intends to file a complaint with the World Trade Organization (WTO) against what it calls “malicious” US tariffs.
Trump’s Justification and Political Strategy
Trump has consistently used tariffs as a key foreign policy tool, insisting they are necessary to curb illegal migration and drug trafficking. He praised Mexico and Canada for their recent commitments to border security and fentanyl control, leading to a temporary suspension of their tariffs.
Mexico has already deployed 10,000 troops along its borders, while Canada is appointing a “Fentanyl Czar” to combat drug smuggling.
Market Reactions and Global Impact
Global stock markets reacted with caution as investors braced for further volatility. While China remains a significant importer of US energy, its trade relations with Russia have strengthened, reducing dependence on American exports.
With trade tensions escalating, all eyes are now on the Trump-Xi call, which could determine the next phase of the economic standoff between the two superpowers.