Unresolved Tensions Persist in US-China Trade War
Discourages prospects for a deal with China
As of May 2025, the U.S.-China trade conflict has seen its share of ups and downs. While there were signs of de-escalation in mid-May, recent developments have brought renewed tension.
Rekindled Aggression
Unfortunately, the duo is now trading barbs without a resolution in sight. President Trump has shared his skepticism about a deal on his Truth Social platform, labeling Chinese President Xi Jinping as "tenacious," adding a deal with him is "extremely difficult."
Both nations have accused each other of breaking commitments or imposing additional restrictions. For instance, the U.S. has halted shipments of vital turbine parts to China and attempted to limit its access to crucial chip technology—moves that haven't gone unnoticed in Beijing. On the other side, China stands accused of blocking critical minerals supply essential for the automotive sector.
The cause of Trump's latest social media outburst remains unclear. Reportedly, he and Xi were due to speak by the week.
The Audio-Visual Battlefield
Before Trump's post, financial news agency Bloomberg reported that China might order a substantial number of aircraft from Airbus during European leaders' July visit—a strong competitor of the US aircraft manufacturer Boeing. China's aircraft purchase poses a significant blow to Boeing's position in the Chinese market, where the company currently faces pressure.
The Big Picture
Since the trade war commenced, China has perceived itself as an equal to the U.S. in terms of economic, technological, and military capabilities. This self-perception drives its negotiating stance, making it hard to succumb to pressure in trade disputes. In contrast, the U.S. trade policy has been marked by inconsistency, further fueling tensions.
Despite tariff reductions, unresolved issues remain—continuing the potential for future frictions. The trade war has already caused economic damage, including price inflations and supply chain disruptions. Moreover, the ongoing spat affects the U.S.'s standing as a global leader, straining its relationships with its allies.
All in all, progress in the U.S.-China trade dispute has been slow, and challenges persist, hindering a definitive resolution.
Sources: ntv.de, lar/dpa
- USA
- China
- Donald Trump
- Xi Jinping
- Trade Disputes
- Global Leadership
Enrichment Data:
Overall:
The U.S.-China trade dispute continues to be an evolving, complex situation. Though there have been attempts to de-escalate the conflict, ongoing challenges and unresolved issues persist.
De-Escalation Efforts:
- Tariff Reductions: Tariffs were reduced for both countries, with the U.S. lowering tariffs from 145% to 30%, and China reducing tariffs on U.S. goods from 125% to 10%. [2][3]
- Relaxation of Export Restrictions: China relaxed its critical minerals export restrictions in May. [2]
- Dialogue Mechanism: A dialogue mechanism was established to support continued discussions between both nations. [3]
Reasons Behind Tensions:
- China's Perception as a Peer: China views itself as equal to the U.S., making it resistant to being seen as a loser in trade disputes. [1]
- Erratic U.S. Trade Policy: The U.S.'s inconsistent trade policy contributes to ongoing tensions and impacts long-term economic resilience. [2]
- Unresolved Issues: Despite tariff reductions, many crucial details remain unresolved, posing risks for future escalations. [2]
Challenges Ahead:
- Economic Impact: The trade war has caused significant economic damage, including price increases and supply chain disruptions. [2]
- Global Leadership: The ongoing US-China trade tensions weaken the U.S.'s standing as a global leader. [2]
- The ongoing trade dispute between the United States and China involves numerous policy concerns, including community policy and employment policy, as both nations grapple with concerns over job losses and economic implications due to tariffs and trade restrictions.
- Despite attempts at de-escalation, discussions about politics, war-and-conflicts, and general-news continue to dominate the discourse surrounding the US-China trade war, with the potential for future escalations perpetuated by unresolved issues and inconsistencies in trade policies from both countries.
