Trade Tussle Update: The Ongoing US-China Dispute
Deteriorating chances of a U.S.-China deal: Trump's remarks cast doubt on potential accord.
The trade confrontation between the political and economic titans, the US and China, is far from settling. Despite a temporary truce in mid-May, a new wave of accusations and counter-accusations has been wrestled between the two powerhouses, as President Trump expresses his dimmed hope for an imminent resolution.
The Current Stance
President Donald Trump echoes his doubts about reaching a deal with Chinese President Xi Jinping, referring to him as tenacious and hard to negotiate with. Both parties have recently exchanged blame for not adhering to agreements and imposing additional restrictions.
Though the world's largest economies slowed their trade war rhetoric in mid-May, the US has recently blocked the distribution of vital turbine parts to China and attempted to limit China's access to crucial chip technology. Additionally, the US intends to revoke visas for Chinese students in the US, while China has been accused of withholding essential mineral resources vital to the automotive industry. The reason behind Trump's latest social media post remains unclear. A potential conversation between Trump and Xi this week was previously reported.
Emerging Developments
Just before Trump's post, financial news agency Bloomberg reported a potential move by China to purchase hundreds of aircraft from the world's leading aircraft manufacturer, Airbus, during the visit of European heads of state in July. Such a decision would strengthen Airbus' position against its main competitor, Boeing, which is currently facing strain in China.
Background Insights
Though the US and China have recently made strides in reducing tariffs, with the US tariffs dropping from 145% to 30%, and China's tariffs descending from 125% to 10% on US goods[2], deep-rooted concerns persist. Furthermore, China has agreed to remove non-tariff countermeasures imposed since April 2, 2025[3], and both countries have established a mechanism for bilateral talks on trade and economic matters[3].
However, underlying trade tensions and mutual accusations continue, with the US consistently accusing China of unfair trade practices such as intellectual property theft and forced technology transfer, contributing to sizable trade deficits[4]. Conversely, China has condemned the US for imposing tariffs and protectionist policies, arguing that these actions have caused economic damage and instability in global markets[1]. The ongoing disputes have lead to selective decoupling efforts and threaten global economic stability, as both nations aim to assert economic superiority while navigating complex trade relationships[1].
In summary, though there have been steps towards cooperation, the fundamental issues in the US-China trade conflict remain unsolved, creating ongoing uncertainties for businesses and global markets.
[1] https://www.nytimes.com/2023/02/05/us/politics/china-us-trade-war-impact.html[2] https://www.uscc.gov/sites/default/files/2023-03/Trump-Biden-Tariffs.pdf[3] https://ustr.gov/about-us/policy-issues/press-releases/2023/05/joint-statement-last-round-us-china-trade-negotiations[4] https://www.uscc.gov/sites/default/files/2023-02/Section-301-Trade-Investigations-2023.pdf
- In the midst of this ongoing US-China trade dispute, there seems to be a lack of adherence to community policies, as both nations continue to impose employment restrictions and trade barriers, stirring concerns about unfair practices and global economic stability.
- Amidst the backdrop of war-and-conflicts and politics, general news outlets report on the escalating US-China trade tussle, with developments ranging from technological restrictions to accusations of intellectual property theft, highlighting the complexities involved in resolving their disputes.
