Trade Dispute Churn: Trump Doubts Compromise with Xi China-U.S. Tussle Heats Up Again
New Accusations and Trade Dynamics
Dampened Prospects of a Trump-China Deal Reconciliation
Although the economic titans, the U.S. and China, seemed to cool off their trade conflict in mid-May, the ice is cracking once more. American President Donald Trump is growing skeptical about reaching a resolution in the near future. The two leaders have been trading jabs of late, with Trump remarking on his Truth Social platform that Chinese President Xi Jinping "is very tenacious, and it's bloody hard to strike a deal with him."
Both economic giants have leveled accusations at one another, with America accusing China of disregarding agreements and enforcing new limitations, while China is said to be withholding essential minerals for the automotive industry. Additionally, the U.S. has halted the delivery of key turbine components for China and sought to restrict China's access to innovative chip technology. Meanwhile, the U.S. is reportedly rescinding visas for Chinese students studying in the country.
The Road Less Traveled: Not Full Adherence to Agreements
A 90-day tariff respite initiated on May 12, 2025, was agreed upon by both nations, offering a chance for negotiations towards a far-reaching agreement. However, China has accused the U.S. of infringing upon this truce, pointing to Trump's alleged provocation of new economic discord. Despite lowering tariffs from 145% to 30% on some Chinese goods, the American administration has faced criticism for not abiding fully by the agreement, as China laments the introduction of new economic barriers.
A Strain on the Aviation Industry
In the wake of the escalating trade tensions and geopolitical jostling, China could potentially boost its relationship with Airbus, Europe's leading aircraft manufacturer, by placing significant orders during the upcoming visit of European heads of state in July. This move would further strain the already fraught relationship between the American aircraft giant Boeing and China.
Global Consequences
The ongoing feud between the U.S. and China brings potential risks to global trade and economic stability. Analysts caution that a total disengagement could lead to a sharp decline in demand for industrial commodities and disruptions in international supply chains.
Sources:
- ntv.de, lar/dpa
- Various news sources and experts' opinions
Key Terms:
- USA
- China
- Donald Trump
- Xi Jinping
- Trade Conflicts
Enrichment Insights:
- Tariff Dispute: The U.S. and China agreed to a 90-day tariff pause, during which they aimed to negotiate a more substantial agreement. However, China has accused the U.S. of violating the truce, and both sides have imposed additional economic restrictions.
- U.S. Actions: The U.S. slightly lowered tariffs on Chinese goods from 145% to 30%, while China reduced tariffs on American goods from 125% to 10%.
- Economic and Trade Meeting: Both countries have agreed to establish a mechanism for ongoing discussions on economic and trade relations, with representatives set to meet alternatively in China, the U.S., or a third country.
- Visa Revocations: The Trump administration has started revoking visas for some Chinese students in the U.S. This move affects over 275,000 Chinese students currently studying in the U.S.
- Potential Aircraft Orders by China from Airbus: No recent updates on this subject were found. However, China has been a significant market for both Airbus and Boeing, and ongoing trade tensions could affect future aircraft purchases.
- In the context of the renewed trade dispute between the U.S. and China, it's crucial for both countries to establish clear and transparent community policies, particularly in employment matters, to ensure fairness and avoid unnecessary conflicts.
- In light of the political backdrop created by the intensifying trade conflict between the U.S. and China, it would be prudent for the international community to closely monitor general news reports about war-and-conflicts, politics, and employment policies, as these developments could significantly impact global economic stability.
