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NRIPage | Articles | U.S.-China Trade Dispute Intensifies With Retaliatory Tariffs | Get General Articles. Stay Informed on a World of Topics - NRI Page
China and U.S. on the Brink of Renewed Trade War Amid Escalating Tariffs
Tensions between the United States and China are escalating, with analysts warning of a potential full-scale trade war if both nations fail to resolve their disputes before new Chinese tariffs on $14 billion worth of American exports take effect on Monday.
Tit-for-Tat Tariff Increases
Last week, the U.S. announced an additional 10% tariff on Chinese goods, aiming to pressure Beijing into addressing fentanyl-related exports to the U.S. and Mexico. In response, China imposed 10-15% duties on U.S. energy exports and farm equipment, set to be implemented on Monday.
“This could mark the beginning of a more intense phase of the trade war,” said Zhang Yanshen from the China Center for International Economic Exchanges. “If unresolved, the situation could deteriorate significantly.”
Uncertain Negotiations
Initially, there was hope for negotiations to prevent further hostilities. President Trump had signaled a possible conversation with President Xi Jinping, but after China retaliated, he stated he was in "no rush" and described the tariffs as just an "opening salvo" with more substantial measures potentially on the way.
While a White House official confirmed that the U.S. remains in "constant contact" with Chinese counterparts in both Beijing and Washington, a spokesperson for the Chinese embassy in Washington indicated there had been "no new developments" since the retaliatory measures were announced.
China’s Reaction to U.S. Strategy
Experts in Beijing suggest that Trump’s approach—applying sudden economic pressure to force a quick agreement—may have backfired. The U.S. provided only two days' notice before implementing the tariffs, a timeline that was likely unacceptable to Chinese leadership.
“China does not want an agreement under such conditions,” said Ma Wei, a researcher at the Chinese Academy of Social Sciences. “Negotiations must be conducted on equal terms, not through coercion where tariffs are imposed first, followed by demands for a deal.”
Ma referenced a Chinese idiom, "cheng xia zhi meng," which describes being forced into negotiations under duress when the enemy is at the gates—an analogy that reflects Beijing’s perspective on the current U.S. strategy.
With no clear resolution in sight, the risk of further economic confrontation between the world’s two largest economies remains high.
