Unraveling the Tariff Tension Between the US and China

Jordan Hayes Avatar

By

Unraveling the Tariff Tension Between the US and China

Former President Donald Trump’s unexpected assertions that U.S. negotiators sought to repeal existing Chinese tariffs have puzzled experts and government officials. Trump claimed that deals were actually in process, implying a friendlier relationship was being fostered between the two countries. After China roundly rejected the accusations, there’s been widespread misunderstanding about the state of our trade relations today.

In an interview with Time magazine, Trump stated that he was in talks with Chinese President Xi Jinping regarding tariffs. He repeated this claim when talking to reporters as he left the White House to go on vacation. Trade tensions have skyrocketed. Both countries have responded with further rounds of punitive, trade war-level tariffs, escalating the situation even further.

The Tariff Landscape

The trade war started when Trump slapped a 145 percent tariff on Chinese imports. In response, China placed a 125 percent tariff on American goods. While this tit-for-tat strategy has certainly created the case’s political and economic chess board, now both parties are throwing stones accusing each other of engaging in dirty tactics.

For example, China’s Foreign Minister, Wang Yi, stressed that Beijing stands on the side of international rules when it comes to imposing tariffs. He lambasted the United States for its so-called “extreme egoism” and “rooted violator bullying” in global commercialization. Wang’s statements underscore China’s frustration with US trade policy and the need for a more balanced and fairer trade relationship.

“The US should stop creating confusion.” – China (via Chinese Embassy in Washington)

The rising tariffs have hurt consumers and created a diplomatic crisis. Trump administration’s record antipathy toward similar tariff strategies against other countries. In response, many countries around the world are rushing to negotiate trade deals with the US to lower market access barriers.

Claims of Negotiations and Responses

Trump’s claims for future negotiations with China in particular have raised doubt from the experts. As analysts have highlighted, not a single major trading partner has publicly affirmed any agreements on tariffs. According to Dr. Scott Kennedy, a leading scholar on Sino-American relations,

“I don’t think the two have communicated directly with each other since they spoke on January 17.”

Kennedy went on to add that while there may be some low-level back-channeling communications in play, major negotiations seem highly improbable in the current climate.

Here’s why, according to Dr. Xin Sun, who wrote about what these comments mean for us and why they’re likely meant politically by Trump. He stated,

“Given those unsubstantiated claims Trump and his administration has made over the past few weeks, I think there is a strong political incentive for the Trump administration to make the claim that China is in negotiation with the US.”

According to Sun, asserting that negotiations are taking place would be a proactive measure to prepare for potential concessions on tariffs.

China’s Firm Rejection

To counter such claims from Trump, the Chinese Embassy in Washington released a statement defending their actions. They flatly rejected the notion that they are still consulting or negotiating with the U.K. on tariff rollbacks, saying,

“China and the US are NOT having any consultation or negotiation on #tariffs.”

This announcement emphasizes China’s desire to control the narrative and keep everything focused and aboveboard during the chaos that is the U.S.-China trade talks.

Commentators such as Bethany Allen have noted the jolting difference between Trump’s off-the-cuff unspun style and China’s tightly controlled narrative. Her suggestion was that while Trump could be referring to some kind of communication between officials, it’s likely not tied to any serious negotiations.

“Messaging on the Chinese side, however, is always extremely precise and controlled,” she noted.

This gap in communication styles and levels of detail might help explain how we’ve gotten here on the status of trade talks.

Implications for Future Relations

The trade war between the US and China still has severe impacts on both countries. But as both sides continue to double down, it’s unclear how or when these tensions will be resolved. With no direct talks officially confirmed, the outlook for US-China relations remains uncertain and a new round of tariffs will likely only muddy the waters further.

Jordan Hayes Avatar
KEEP READING
  • Major Parties Diverge on Climate Policy Ahead of Upcoming Election

  • Frustration Grows Over Electronic Monitoring System in Western Australia

  • Boycotting Supermarkets: A Year of Change for Consumers

  • Accessibility Issues for Breastfeeding at AFL Stadiums Highlighted by Mothers

  • Tragedy Strikes Vancouver as Car Ramming Attack Claims Lives

  • Art Meets AI in Brooklyn’s Unique Cardboard Coworking Space