Amidst rising global concerns over US-China trade relations, President Donald Trump has signaled a shift towards de-escalation, asserting that the United States aims to ‘help China, not hurt it.’ Trump conveyed his respect for President Xi Jinping, suggesting that the Chinese leader is navigating a difficult period but shares the common objective of preventing economic depression. This public statement, made on social media, seeks to alleviate international apprehension regarding the deepening rift between Washington and Beijing.
The White House has corroborated this message, underlining that the US’s intentions are not adversarial. These reassurances follow China’s stern warning of retaliatory actions if the US implements a proposed 100% tariff on Chinese goods. The recent imposition of export curbs on rare earth minerals by China has significantly intensified trade disputes, threatening to unravel recent advancements in bilateral trade discussions.
China’s Ministry of Commerce has reiterated its position, stating that threats of excessive tariffs are counterproductive. A ministry spokesperson advised that if the US proceeds with unilateral actions, China will be compelled to enact proportionate measures to defend its legitimate economic interests. While emphasizing a preference for avoiding a tariff war, China has also affirmed its readiness to confront one if necessary. The volatile trade environment has already impacted global financial markets, leading to stock market declines and heightened industry caution, reminiscent of previous tariff skirmishes.
The growing unpredictability in trade relations also casts doubt on the upcoming summit between President Trump and President Xi in South Korea, slated for the coming weeks. Concerns over China’s rare earth export policies had previously led Trump to question the necessity of the meeting.