Kai He
The United States and China remain in a standoff in their tariff war. Neither side appears willing to budge.
After US President Donald Trump imposed massive 145% tariffs on Chinese imports in early April, China retaliated with its own tariffs of 125% on US goods.
US Treasury Secretary Scott Bessent said this week it’s up to China to de-escalate tensions. China’s Foreign Ministry, meanwhile, said the two sides are not talking.
The prospect of economic decoupling between the world’s two largest economies is no longer speculative. It is becoming a hard reality. While many observers debate who might “win” the trade war, the more likely outcome is that everyone loses.
A convenient target
Trump’s protectionist agenda has spared few. Allies and adversaries alike have been targeted by sweeping US tariffs. However, China has served as the main target, absorbing the political backlash of broader frustrations over trade deficits and economic displacement in the US.
The economic costs to China are undeniable. The loss of reliable access to the US market, coupled with mounting uncertainty in the global trading system, has dealt a blow to China’s export-driven sectors.
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