US-China Relations in the Trump 2.0 Era: A Timeline

This timeline was created on January 21, 2025, and was last updated on October 11, 2025. 
On January 20, 2025, Donald Trump was sworn in as the 47th president of the United States. His return to the White House signals a shift in US-China relations. Building on the aggressive stance of his first term, Trump 2.0 is expected to challenge China with a more transactional and unpredictable approach. The economic, security, and diplomatic consequences of his policies will not only reshape US-China ties but also influence the broader global geopolitical landscape.

Trump is expected to intensify the trade confrontations that defined his first administration, potentially escalating tariffs and sanctioning Chinese companies in an effort to achieve greater economic self-sufficiency. However, his focus on America’s immediate interests may leave little room for long-term strategic alliances, making his policy more difficult to predict. As Trump looks to navigate his second term amid a tumultuous political backdrop, China will need to adapt quickly to a US president who is more focused on leveraging short-term victories than on pursuing traditional diplomatic strategies.

This timeline will track the key developments in US-China relations under Trump 2.0, examining the potential consequences for China’s economy and other key aspects, while offering insights into the strategies that both Washington and Beijing will adopt in the face of a renewed geopolitical rivalry.

US-China relations in the Trump 2.0 era

October 10, 2025: Trump announces 100% tariffs on Chinese imports amid rising tensions

On October 10, 2025, President Donald Trump announced that the US would impose an additional 100 percent tariff on imports from China, starting November 1, or earlier, depending on China’s response.

The tariffs will be layered on top of existing duties, potentially pushing effective rates even higher. Trump also announced new export controls on critical US-made software as part of the escalation.

Markets reacted sharply: the S&P 500 fell 2.7 percent, the Dow dropped 878 points, and the Nasdaq declined 3.6 percent, marking the worst single-day performance since April. This move heightens strain on US–China trade relations, with the planned meeting between Trump and Xi Jinping at the upcoming APEC summit now in doubt.

Observers view the action as a forceful retaliation to China’s recent restrictions on rare-earth exports – critical materials for technology and defense industries – which the US sees as a “hostile” maneuver.

The latest escalation could complicate ongoing trade talks and increase economic uncertainty for businesses dependent on China’s supply chains.

October 10, 2025: China announces retaliatory port fees on US vessels

China’s Ministry of Transport has issued an announcement declaring new special port service fees on US-owned, US-operated, and US-built vessels, in direct response to the US’s actions imposing similar fees on Chinese vessels entering US ports.

According to the announcement, the policy, approved by the State Council and based on the Regulations of the People’s Republic of China on International Maritime Transport, will take effect on October 14, the same day US fees are implemented.

The notice specifies that the special port service fee will be applied on a per-voyage basis, with phased increases over time:

• From October 14, 2025: RMB 400 (US$56) per net ton (NT)
• From April 17, 2026: RMB 640 (US$90) per NT
• From April 17, 2027: RMB 880 (US$123) per NT
• From April 17, 2028: RMB 1,120 (US$157) per NT

For vessels calling at multiple Chinese ports during a single voyage, the fee will be charged only at the first port of call. No more than five voyages per vessel per year will be subject to the fee.

China’s statement described the move as a necessary and proportionate response to US measures it characterized as harmful to the normal conduct of maritime trade.

October 9, 2025: China tightens rare earth export controls, requiring export licenses for goods with small amounts of Chinese-origin restricted goods

China’s Ministry of Commerce (MOFCOM) has announced expanded export control measures covering certain rare earth materials, technologies, and dual-use items, citing the need to protect national security and strategic interests. The decision, approved by the State Council, was issued under China’s Export Control Law and the Regulations on the Export Control of Dual-Use Items.

Under the new rules, foreign entities must obtain an export license for products containing even 0.1 percent or more of Chinese-origin controlled materials, significantly broadening the scope of licensing obligations. This applies to Chinese-origin items immediately, and to foreign-made products incorporating these materials starting December 1, 2025.

Other key provisions include:

• Exports involving military end users or entities on China’s export control/watch lists will generally not be approved.
• Items intended for weapons development, terrorism, or military enhancement will be reviewed on a case-by-case basis.
• Exports for humanitarian purposes, such as emergency medical use, disaster relief, or public health response, are exempt, provided exporters report within 10 business days and certify the items will not endanger national security.
• Certain advanced semiconductors, specifically 14 nm or below logic chips, 256-layer or higher memory chips, or AI technologies with potential military applications, are subject to a case-by-case review.

Exporters must apply through MOFCOM’s Dual-Use Item Export Licensing System (http://ecomp.mofcom.gov.cn) or via qualified Chinese intermediaries.

October 8, 2025: US CBP to begin collecting fees on Chinese ships starting October 14

The US Customs and Border Protection (CBP) has issued new guidance on the implementation of vessel fees established under the Section 301 investigation on China’s maritime, logistics, and shipbuilding sectors. The guidance, released on October 3, 2025, provides operational details for how these fees will be assessed and collected beginning October 14, 2025.

The guidance follows the April 17, 2025 determination by the US Trade Representative (USTR) and subsequent amendments in June, which clarified exemptions and administrative provisions.

Under the new procedures, vessel operators are required to determine whether their vessels are subject to fees and to complete payment prior to arrival at the first US port from abroad. CBP stated that operators who fail to provide proof of payment may be subject to denial of lading or unlading operations, or withholding of clearance until payment is verified.

The fees effective October 14 are as follows:

1. A fee of US$50 per net ton (NT) on any vessel owned or operated by a Chinese entity.
2. A fee of US$18 per NT or US$120 per container discharged, whichever is higher, on Chinese-built vessels.
3. A fee of US$14 per NT on vehicle carriers and roll-on/roll-off (Ro-Ro) vessels.

The fees will be steadily raised over the next three years. For vessels owned and operated by Chinese entities, the fees will be as follows:

1. Effective as of April 17, 2026: US$80 per NT.
2. Effective as of April 17, 2027: US$110 per NT.
3. Effective as of April 17, 2028: US$140 per NT.

Meanwhile, for Chinese-built vessels, the fees will be as follows:

1. Effective as of April 17, 2026: US$23 per NT or US$153 for each container discharged.
2. Effective as of April 17, 2027: US$28 per NT or US$195 for each container discharged.
3. Effective as of April 17, 2028: US$33 per NR or US$250 for each container discharged.

Liquefied natural gas (LNG) tankers are exempt from the fees. Fees will be applied up to five times per year per vessel.

The Chinese Ministry of Commerce (MOFCOM) has condemned the new US fees, stating that they contravene international trade principles and the bilateral maritime agreement between the two countries. In response, China has announced that it will impose its own port fees on US-owned and operated vessels beginning the same day.

October 6, 2025: Trump states 25% tariff on trucks will come into effect November 1

In a post on Truth Social, President Trump announced that a 25 percent tariff will be levied on all medium and heavy-duty trucks entering the US from November 1. The specific products that will be subject to the tariffs have not yet been announced, and it is not clear whether truck parts will be affected.

At the end of September, Trump stated that he would impose tariffs on kitchen cabinets and vanities, pharmaceuticals, and medium and heavy-duty trucks starting in the beginning of October. So far, however, only the tariff on furniture and timber products have been officially implemented.

The tariff on trucks follows a Section 232 investigation launched in April into the national security impact of truck imports on the US. The investigation covers medium-duty trucks (weighing between 10,000 and 26,001 lb), heavy-duty trucks (weighing 26,001 lb or more), as well as engines and engine parts, transmissions and powertrain parts, and electrical components.

September 29, 2025: Trump imposes tariffs on timber and furniture products

President Trump signed an executive order on Monday slapping a 10 percent tariff on softwood timber products and a 25 percent tariff on certain furniture items.

The tariffs have been imposed following an investigation that “found that present quantities and circumstances of wood product imports are weakening our economy, resulting in the persistent threats of closures of wood mills and disruptions of wood product supply chains, among other things, and diminishing the utilization of production capacity of our domestic wood industry.”

The executive order follows through on a pledge made by Trump last week to raise the tariff on cabinets and upholstered furniture to 50 percent and 30 percent, respectively, starting this week. He also vowed to raise tariffs on branded pharmaceuticals to 100 percent and heavy-duty trucks to 25 percent.

The products impacted by the new tariffs, which will come into effect on October 14, are:

• Softwood timber (10 percent)
• Upholstered wooden furniture products (25 percent)
• Completed kitchen cabinets and vanities (25 percent)

From January 1, 2026, the tariff on upholstered wooden furniture will rise to 30 percent, and the tariff on kitchen cabinets and vanities will rise to 50 percent, unless countries have reached a trade deal with the US “that addresses the threatened impairment of the national security posed by imports of wood products”.

The executive order also includes country and region-specific tariffs on wood products from the European Union, the United Kingdom, and Japan.

The tariffs will not be levied on top of the reciprocal tariffs (currently 10 percent on China), but will be stacked with the 20 percent fentanyl tariffs imposed on China, as well as the pre-existing Section 301 tariffs.

In 2024, US imports from China that will be subject to the upcoming tariffs included about US$30.7 billion in softwood timber products, US$1.8 billion in upholstered furniture, and US$1.9 billion in kitchen cabinets and vanities, according to US Census data.

September 29, 2025: BIS adopts 50% ownership rule for entity list affiliates

The Bureau of Industry and Security (BIS) has issued an interim final rule (IFR) under the Export Administration Regulations (EAR) extending Entity List restrictions to entities that are 50 percent or more owned, directly or indirectly, by one or more listed parties.

Previously, only entities explicitly named on the Entity List were subject to restrictions, regardless of ownership. The new “Affiliates rule” automatically applies license requirements to majority-owned affiliates, aligning BIS policy with the Department of the Treasury’s Office of Foreign Assets Control (OFAC) 50 percent Rule for blocked persons and sanctions compliance.

The BIS noted that while compliance may require additional ownership analysis, many exporters already conduct such due diligence under OFAC requirements. The rule reduces the need for frequent additions to the Entity List while addressing potential circumvention risks.

China’s Ministry of Commerce (MOFCOM) condemned the rule, stating it is an abuse of export controls that harms affected companies, disrupts international trade, and threatens global supply chains. MOFCOM urged the US to correct the measure and said China will take necessary actions to protect its enterprises.

September 25, 2025: Trump signs executive order approving TikTok deal

On Thursday, President Donald Trump signed an executive order approving the divestiture of TikTok’s US operations, following a framework agreement designed to address national security concerns. The order comes after discussions between US and Chinese officials, including meetings in Madrid and a call between Trump and Xi Jinping, although China has yet to formally confirm the deal.

According to the executive order, key terms of the deal include:

• A US-based joint venture will operate TikTok’s US application, with less than 20 percent ownership by ByteDance and its affiliates.
• Operation of TikTok’s algorithms, content moderation, and related code will be under the joint venture’s control.
• Sensitive US user data must be stored on American cloud servers and remain under US oversight.
• “Trusted security partners” will monitor software updates, algorithms, and data flows, including retraining recommendation models that use US data.

The executive order designates this arrangement as a “qualified divestiture” under the 2024 divest-or-ban law, covering TikTok, Lemon8, CapCut, and other applications operated by the joint venture.

Key figures expected to be involved in the joint venture include Oracle executive chairman Larry Ellison, Fox Corporation’s Rupert Murdoch, and Dell Technologies CEO Michael Dell. The investors will control the algorithm powering TikTok in the US, with Americans holding six of the seven seats on the board. The app’s algorithm will be retrained on US user data, while Oracle will continue storing US data on its servers and serve as the security provider.

While US officials say the arrangement meets national security requirements and allows TikTok to continue operating in the US, neither the Chinese government nor ByteDance has confirmed the deal. According to the business advisory firm Trivium China, Chinese media reports covering the news had previously suggested ByteDance would keep control of TikTok’s US business, which the joint venture would take control of TikTok US Data Security (USDS), a wholly-owned US venture ByteDance created in 2022 to host American TikTok users’ data.

However, these Chinese news articles have since been removed, suggesting this arrangement had not been finalized or sanctioned by the government.

September 22, 2025: White House officials release more details on TikTok deal which will involve Oracle, Silverlake joint venture

On Monday, White House officials revealed more details on the potential TikTok deal, telling reporters that a US joint venture composed of investors including database software company Oracle and the private equity firm Silverlake will take control of TikTok’s US business. This follows a framework agreement reached between US and Chinese officials in Madrid on September 15, which was subject to final approvals on the US and Chinese sides.

An anonymous senior White House official told NPR that the venture will get a copy of TikTok’s recommendation algorithm, which will be retrained on US data, while Oracle will be the company’s security provider. This arrangement complies with both US and Chinese law, according to the official.

Meanwhile, Trump told Fox News over the weekend that Rupert Murdoch and his son Lachlan are “probably” going to be involved in the deal, which is also likely to involve Oracle executive chairman Larry Ellison and Dell Technologies CEO Michael Dell.

Trump is also expected to sign an executive order this week to declare that the deal meets the US’s national security needs.

While the US officials have been vocal about the deal over the weekend, the Chinese side has yet to confirm or provide any further details on the potential deal. On Monday, Foreign Ministry Spokesperson Guo Jiankui repeated previous statements that China “would be happy to see productive commercial negotiations in keeping with market rules lead to a solution that complies with China’s laws and regulations and takes into account the interests of both sides”. With regards to the deal, he added that “competent authorities have shared information on the basic framework consensus on the TikTok issue”.

September 19, 2025: Trump and Xi hold phone, agree to meet at APEC summit in South Korea, make progress on TikTok deal

President Xi and President Trump spoke on the phone on Friday, in which the two leaders had a “candid and in-depth exchange of views on the current state of China-U.S. relations”, according to a readout from the Chinese Foreign Ministry. According to a post by Trump on Truth Social, the two discussed a variety of issues, including trade, fentanyl, the Russia-Ukraine war, and the approval of the TikTok deal.

Trump also stated that the two leaders will meet at the APEC summit in South Korea at the end of October, and that Trump will visit China in early 2026. He also added that President Xi will visit the US “at an appropriate time”.

Trump implied in his post that a deal for US investors to take over the American portion of the TikTok business had been approved. However, it remains unclear how far along the negotiations have come. The Chinese Foreign Ministry readout was less clear cut, stating that “The Chinese government respects the wishes of the company in question, and would be happy to see productive commercial negotiations in keeping with market rules lead to a solution that complies with China’s laws and regulations and takes into account the interests of both sides.”

September 18, 2025: US and China in final stage of talks for potential Trump state visit to Beijing, according to report

China and the United States are in the “final stage” of negotiations for a state visit to Beijing by President Donald Trump, according to reporting from the South China Morning Post (SCMP). Bulk purchases of American goods – including soybeans – are expected to be a key part of the deliverables if the trip goes ahead.

The development follows the fourth round of trade talks held in Madrid earlier this week and comes ahead of a scheduled phone call between Trump and Chinese President Xi Jinping on Friday. Trump described the Madrid talks as a “success,” with both sides reaching a framework deal on TikTok and also discussing issues such as critical minerals and fentanyl, the SCMP reported.

If finalized, the trip would mark the first visit by a US president to China since 2017. Sources with knowledge of the talks told the SCMP that “significant progress” has been made and only “a few small loose ends” remain to be resolved.

September 15, 2025: US and China reach framework agreement on TikTok following meetings in Madrid

US and Chinese officials have confirmed that the two sides have reached a “basic framework consensus” to resolve the TikTok problem, just a few days ahead of the app’s September 17 divest-or-ban deadline. The framework agreement is the result of the fourth round of trade meetings held in Madrid between Chinese Vice Premier He Lifeng, US Treasury Secretary Scott Bessent, and US Trade Representative Jamieson Greer on Monday.

According to a readout from the Chinese government, the two sides will now “consult on the relevant outcome documents and complete their respective domestic approval procedures.”

In a post on Truth Social, President Trump stated that a deal had been reached “on a ‘certain’ company” and that he would be speaking to President Xi on Friday. When asked by reporters whether China would continue to hold a stake in TikTok, Trump told reporters (per Reuters) that “We haven’t decided that, but it looks to me, and I’m speaking to President Xi on Friday, for confirmation of that.”

In April 2024, following approval from the Senate, then-President Joe Biden signed a bill that would force TikTok’s owner ByteDance to divest from TikTok in the US or face a nationwide ban within 270 days of the bill’s passing. Since returning to office this year, Trump has delayed the ban three times – in January, April, and June – to provide more time for a deal to go through.

A previous deal fell through in April of this year following Trump’s imposition of sweeping tariffs on China and other trade partners.

It is currently unclear what the deal will look like. The Chinese government readout said that “China will conduct technology export approvals in accordance with laws and regulations”. Speaking to reporters following the meetings, Deputy Director of the Cybersecurity Administration of China Wang Jingtao said that the issue could be resolved through “methods such as outsourcing the operation of TikTok’s US user data and content security operations, and licensing the use of its algorithmic and other intellectual property rights”, according to a Chinese government readout. It added that “The Chinese government will review and approve matters related to TikTok’s technology exports and intellectual property licensing in accordance with the law.”

September 9 to 10, 2025: Senior US and Chinese officials hold calls on bilateral and security issues

On September 10, Secretary of State Marco Rubio spoke by phone with Chinese Foreign Minister Wang Yi in a conversation that was described as a continuation of the discussions held during their previous meeting in Kuala Lumpur in July.  According to a brief readout from the Department of State, Secretary Rubio emphasized the importance of open and constructive communication on a range of bilateral issues, as well as global and regional challenges.

The readout from China’s Ministry of Foreign Affairs (MOFA) stated that Wang Yi stressed the need for both countries to keep “two giant ships” on course under the strategic guidance of their leaders, warning that recent US actions had harmed China’s legitimate rights and interfered in its internal affairs. However, he also struck a conciliatory tone, calling for the two countries to build on their shared history of cooperation during World War II – marking the 80th anniversary of the end of the conflict – and to work together to address global challenges.

A day earlier, the US Defense Secretary Pete Hegseth held a video call with China’s Minister of National Defense, Admiral Dong Jun. According to a readout from the Pentagon, Hegseth affirmed that the US does not seek conflict with China nor aim for regime change, while making clear that the US has vital interests in the Asia-Pacific that it will firmly protect. The statement described the exchange as candid and constructive, with both sides agreeing to hold further discussions.

The readout from the Chinese Ministry of National Defense (MND) also characterized the call as candid, pragmatic, and constructive. Dong Jun underscored that the two militaries should follow the consensus set by their leaders, establish a relationship based on equality, respect, and peaceful coexistence, and maintain open channels of communication. He also warned against interference in China’s “core interests”, including Taiwan and the South China Sea. 

The increase in dialogue between US and Chinese officials in recent months suggests the two countries are seeking to stabilize communications ahead of a possible meeting between President Xi and President Trump at the ASEAN summit in Kuala Lumpur in October.

September 9, 2025: Trump urges EU to hit China with 100% tariff over Russia oil purchases, according to report

During a call between senior US and EU officials in Washington on Tuesday, Trump urged the EU to impose a 100 percent tariff on China and India over their purchases of Russian oil, according to a Financial Times report.

A US official told the FT that the US was prepared to match any tariffs the EU placed on China, in an effort to put pressure on Russia to agree to a ceasefire agreement with Ukraine.

At the end of August, the US raised the tariff on India from 25 to 50 percent as a penalty for the country’s purchases of oil from Russia. While many expected China to be next, Trump has thus far refrained from raising tariffs and has adhered to the 90-day trade truce.

As Trump is increasingly frustrated over the lack of progress in ceasefire negotiations, the US may seek new ways of raising pressure on Russia, including possible further sanctions. Speaking at a regular press briefing on Wednesday, Chinese Foreign Ministry Spokesperson Lin Jian rejected the notion that China has a role in the Russia-Ukraine war, stating that “China did not create the crisis, nor is China a party to it. We oppose making an issue of China or imposing so-called “economic pressure” on us.”

September 9, 2025: China-US trade slumps in first 8 months of 2025, while exports to emerging markets soar

Trump’s tariffs have taken a major toll on US-China trade in 2025, the August trade data from China Customs reveals. In the first eight months of the year, two-way trade dropped 14.4 percent from the same period in 2024 in US dollar terms, with exports falling at an even faster 15.5 percent rate.

The US has also fallen to third place among China’s top trade partners, behind ASEAN and the EU. However, it remained China’s trade partner on a single-country basis.

The US’s shrinking share of China’s overall foreign trade  – which increased 2.5 percent year-on-year to reach US$4.1 trillion between January and August – was offset by strong exports to emerging markets, in particular ASEAN, India, and Africa, as well as the EU. Total trade with ASEAN grew 8.6 percent year-on-year in the first eight months, with Vietnam, Thailand, and Indonesia all recording double digit growth. Chinese exports to Africa soared 24.5 percent year-on-year in the first eight months, while overall two-way trade was up 15.9 percent.

The latest trade data suggests supply chains are restructuring in the wake of Trump’s tariffs, with smaller markets increasing purchases of Chinese goods. However, it remains to be seen whether these smaller countries can offset the impact of the standoff with the US for Chinese exports in the long term, especially as the Trump administration increases scrutiny of Chinese reexports.

August 27 to 29, 2025: Chinese international trade representative meets with US officials in Washington, DC for trade talks

China’s International Trade Representative and Vice Minister of Commerce Li Chenggang visited Washington, DC, to meet with officials from the US Treasury Department, Department of Commerce, and Office of the Trade Representative. While few details have been released about the meetings, a brief readout from the Chinese Ministry of Commerce (MOFCOM) stated that the two sides “exchanged views on China-US economic and trade relations and the implementation of the consensus reached during the China-US trade talks”.

The meetings started just a day after Trump threatened to raise the tariff on China to 200 percent if China did not provide rare earth magnets to the US.

According to reporting from the Wall Street Journal, Li was expected to discuss soybean purchases from the US, something that the Trump administration has been calling for in recent months. Other topics that could have been on the table include purchases of Boeing components, the lifting of the 20 percent fentanyl tariffs, and restrictions on the sale of certain tech products to China.

During his visit, Li also held talks with the US-China Business Council, the US Chamber of Commerce, and representatives of American companies, according to the MOFCOM statement.

August 26, 2025: Trump threatens 200% tariff if China restricts rare earth magnet exports

In a press conference following a meeting with South Korean President Lee Jae Myung at the White House on Monday, Trump told reporters that he would consider a 100 or 200 percent tariff on China if it restricted the export of rare earth magnets to the US. “They have to give us magnets; if they don’t give us magnets, then we have to charge them a 200 percent tariff or something”.

He added he didn’t think that would be necessary as the two countries had put the rare earth dispute “behind us”. Trump also repeatedly stated that the US and China have a “great relationship” and he was planning to visit China this year or next, upon President Xi’s invitation.

The threat of a 200 percent tariff on China in response to rare earth magnet export curbs puts into sharp focus the leverage that China has over the US due to its monopoly over the production of mining and production of rare earth elements and products, something that Trump himself acknowledged. In April, China’s Ministry of Commerce imposed export curbs on seven of the 17 REEs in response to the US’s tariffs, requiring companies to apply for a license in order to export affected goods.

The issue of REE export licenses has been central to US-China trade negotiations in the months since.

China’s rare earth exports rose 32 percent in June compared with the previous month, as the first export licenses introduced in April began to be issued. In July, however, exports dropped 23 percent from June, suggesting the industry is stabilizing after the disruptions seen in April and May.

August 22, 2025: Trump Announces Investigation into Furniture Imports

In a post on Truth Social, Trump announced that the US will conduct a tariff investigation into furniture imports. The investigation will be completed “within the next 50 days”, after which imports will be “Tariffed at a Rate yet to be determined”.

No further details have been released about the investigation since the announcement on Truth Social.

Furniture imports from China are already subject to multiple duties, including a 25 percent Section 301 tariff in place since Trump’s first term, the 20 percent fentanyl tariff, and the temporary 10 percent reciprocal tariff. Additional tariffs will therefore make imports even more expensive and possibly unviable, depending on the rate.

The US imported US$5.7 billion worth of furniture from China in 2024, according to US Census data. However, imports have fallen significantly since Trump returned to office at the beginning of 2025, with imports down 22.2 percent in the first six months of the year from the same period in 2024. In June alone, imports fell 53.4 percent from the previous year.

August 12, 2025: US-China tariff truce extended another 90 days until November 10, 2025

President Trump has signed an executive order extending the current tariff truce with China by another 90 days, moving the expiration date to November 10, 2025. The decision halts a planned escalation of tariffs—now capped at 30 percent on Chinese imports and 10 percent on US goods—in an effort to prevent economic disruption during the critical holiday trade season.

Without the extension, US duties on Chinese goods could have jumped to 145 percent, while China’s retaliatory tariffs might have risen to 125 percent, effectively approaching a trade embargo. The move comes as US retailers are stocking up for year-end sales, providing much-needed relief for supply chain planning.

Both Washington and Beijing have emphasized the importance of maintaining economic stability and allowing more time for negotiations. Analysts see the extension as laying the groundwork for a potential Trump–Xi summit later this year.

August 11, 2025: NVIDIA, AMD strike deal with US government on AI chip exports to China

The US governmenthas reached an agreement with NVIDIA and AMD to allow the companies to export certain AI chips to China in exchange for paying the government 15 percent of their China-related AI chip sales. In return, the US will issue the export licenses that have been withheld in recent months.

In April, the Trump administration blocked exports of NVIDIA’s H20 chips and AMD’s MI308 chips to China without a license, citing national security concerns, and signaled that all future sales would require licensing. Until now, those licenses had not been granted. The H20 was designed specifically for the Chinese market after the Biden administration’s earlier restrictions on high-end chips exports to China.

China has not issued an official statement on the new export arrangement. However, state media has criticized the H20, calling it technologically inferior and raising security concerns. On July 31, China’s Cyberspace Administration (CAC) summoned NVIDIA to explain alleged “serious security vulnerabilities” in the H20, referencing claims that US-exported advanced chips could be fitted with “tracking” and “remote shutdown” features.

Bloomberg has also reported that in recent weeks, Chinese authorities have quietly instructed a range of domestic firms not to use the downgraded AI chips, especially in government or national security-related projects. The guidance was reportedly strongest against H20 deployments in sensitive sectors.

The upshot: NVIDIA and AMD are now operating under dual political and commercial pressures to meet US requirements by paying a 15 percent levy to access the Chinese market, while also facing growing resistance from their customers in China. The arrangement may temporarily restore some trade flows, but the underlying distrust on both sides suggests the future of US-China AI chip commerce remains fragile and politically charged.

August 1, 2025: The US imposes a 50% tariff on copper products

On July 30, 2025, President Donald Trump signed a presidential proclamation under Section 232 of the Trade Expansion Act, imposing a 50 percent tariff on a range of semi-finished copper products and copper-intensive derivative goods, effective August 1, 2025.

• Affected imports include copper pipes, wires, rods, sheets, tubes, fittings, cables, connectors, and electrical components.
• Exempted items include refined copper, ores, concentrates, cathodes, and scrap.

According to the White House fact sheet:

• The tariffs apply only to the copper content of a product; the non-copper portion remains subject to existing duties.
• The copper tariffs do not stack with other Section 232 tariffs, such as those on automobiles—whichever applies first will prevail.
• A product inclusion process will be created to allow for additional copper derivatives to be added to the tariff list.

Alongside these tariffs, the administration has invoked the Defense Production Act to mandate domestic resource allocation:

• Starting in 2027, at least 25 percent of US-produced copper scrap and input materials must be sold domestically, increasing to 40 percent by 2029, to support local manufacturers.

The US currently imports 45–50 percent of its annual copper needs. Given the limited short-term capacity of domestic producers, analysts anticipate supply constraints and long lead times—up to a decade—for new mining and refining facilities to come online.

While China’s copper exports to the US are mainly refined copper, which is exempt from the tariff, some value-added Chinese products—such as copper connectors, pipes, and fittings used in electronics, HVAC systems, or vehicles—may still be affected. This could impact China-based suppliers integrated into US-bound supply chains, particularly in the electrical and clean energy sectors.

Framed under a national security rationale, this latest Section 232 action underscores the US’s continued move toward protectionist industrial policy. For Beijing, it signals a persistent trend of Washington targeting key supply chains, reinforcing concerns over the politicization of trade and further motivating strategic decoupling and supply chain diversification on China’s part.

July 30, 2025: Progress on tariff pause extension, but final decision awaits Trump’s sign-off

US and Chinese trade officials concluded two days of negotiations in Stockholm on Tuesday, marking their third round of high-level talks since May. While both sides expressed optimism about extending the current 90-day pause on reciprocal tariffs, set to expire on August 12, no final agreement has been reached.

Chinese lead negotiator Li Chenggang described the talks as “in-depth, candid, and constructive,” confirming that both sides agreed to work toward an extension. However, US Treasury Secretary Scott Bessent emphasized that any deal remains pending approval from President Donald Trump, stating that “he has final say on all the trade deals.”

Bessent and US Trade Representative Jamieson Greer are expected to brief Trump in Washington this week. Trump, speaking aboard Air Force One, said he would review the proposal on Wednesday and hinted at a positive tone, noting that “they had a very good meeting with China.”

Failure to reach an agreement by the August 12 deadline would trigger a return to earlier tariff levels, which Bessent warned would “boomerang” US tariffs back to their pre-pause levels.

Talks in Stockholm also touched on broader geopolitical concerns, including China’s energy trade with Iran, dual-use technology flows to Russia, and overcapacity in strategic manufacturing sectors. Bessent noted the US aims to rebalance trade by restoring domestic production, securing purchase agreements for agriculture and energy, and reducing trade deficits.

The sides are expected to meet again in 90 days if no extension is finalized before the deadline.

July 29, 2025: US and China expected to extend trade truce by 90 days, discuss fentanyl tariffs in Stockholm meetings

Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent met in Stockholm on Monday for the first of two days of meetings to discuss the ongoing trade disputes between the two countries. No details have been released regarding the meeting on Monday, which reportedly lasted five hours.

US Trade Representative Jamieson Greer previously told CNBC that he did not expect “some kind of enormous breakthrough” and instead a “checking in on the implementation of our agreement”, referring to the agreement reached in Geneva in early May, and “making sure that key critical minerals are flowing between the parties and setting the groundwork for enhanced trade and balanced trade going forward”.

An anonymous source told South China Morning Post that the two sides would extend the August 12 tariff deadline by a further 90 days. The Post also quoted people familiar with Beijing’s position who said China is likely to push the US on the so-called 20 percent “fentanyl” tariffs that Trump imposed in February and March, suggesting that the negotiations will go beyond the de-escalation efforts that defined the first two rounds of talks.

July 22, 2025: US and Chinese officials to meet in Stockholm next week to discuss tariff truce deadline extension

The US Treasury Secretary Scott Bessent announced on Tuesday that he will meet with his Chinese counterpart, Vice Premier He Lifeng, in Stockholm early next week to discuss extending the 90-day tariff truce, which will expire on August 12.

The Chinese Ministry of Commerce (MOFCOM) confirmed on Wednesday that He Lifeng will go to Sweden to hold economic and trade talks with the US from July 27 to 30.

Bessent told Fox News on Tuesday that the talks will be broader in scope than previous meetings and will potentially touch on China’s purchases of oil from Russia and Iran. A Chinese foreign ministry spokesperson declined to confirm this in a press briefing on Wednesday. A MOFCOM spokesperson said that the two sides will “continue to conduct consultations on economic and trade issues of mutual concern in accordance with the principles of mutual respect, peaceful coexistence and win-win cooperation”.

July 18, 2025: US-China relations show signs of thaw as Trump signals softer stance

Recent developments suggest a potential easing in US-China trade tensions, as President Donald Trump adopts a more conciliatory tone toward Beijing ahead of a possible in-person meeting with Chinese President Xi Jinping.

According to a Bloomberg report published Wednesday, Trump is now prioritizing quick purchase deals with China—similar to those reached during his first term—over deeper structural changes aimed at correcting trade imbalances. In internal meetings, Trump has reportedly been “the least hawkish voice in the room,” signaling a shift in strategy aimed at securing tangible wins and a renewed trade agreement.

Sources also indicated that the United States may extend its current tariff truce with China—originally set to expire on August 12—by an additional three months. This follows a series of softer moves by the Trump administration in recent weeks, including lifting restrictions on Chinese access to US electronic design automation (EDA) software and allowing Nvidia to resume exports of its H20 AI chips to China.

Trump also recently praised China for making “big steps” on addressing the US fentanyl crisis—marking a notable shift in tone. Earlier this year, China’s alleged role in fentanyl exports was cited as a key justification for sweeping 20 percent tariffs on Chinese goods.

US Treasury Secretary Scott Bessent also eased concerns, telling business leaders not to worry about the upcoming August 12 deadline. Instead, Bessent described US-China talks as being in a “very good place” and expressed hope for a meeting with Chinese Vice Premier He Lifeng in the near future.

With both sides dialing back economic pressure and signaling willingness to cooperate, there’s cautious optimism that US-China relations could stabilize—especially if momentum builds ahead of Trump’s rumored visit to China.

July 10, 2025: Trump announces 50% tariff on copper imports

In a post on Truth Social, President Trump announced that he will impose a 50 percent tariff on all imports of copper, effective August 1, in an effort to “once again, build a DOMINANT Copper Industry”.

No official information has been released about the tariff as of writing, so it is not clear which copper articles will be subject to the tariff.

According to data from the US Census Bureau, the US imported around US$17.1 billion worth of copper and copper articles in 2024, of which under 3 percent came from China (US$484.2 million). The vast majority of the US’s copper imports came from Chile (35.7 percent) and Canada (23.3 percent).

China still dominates the global copper supply chain. In 2024, China produced 23 million tons of copper and 13.6 million tons of refined copper, according to the National Bureau of Statistics. China also exported a total of US$14 billion worth of copper and copper articles in 2024, per data from China Customs. China’s largest export markets for copper in 2024 were Taiwan, South Korea, Thailand, and Vietnam, where it is used for the production of key products and technologies, including semiconductors, smartphones, batteries, and solar and wind energy technology.

Without specific details on which products will be subject to the duty, it is unclear what the impact will be on China’s copper industry. While China’s direct exports of copper to the US are small, it is clear that large amounts of Chinese-made copper are used in end products that are destined for the US. A broader implementation of the tariff that targets products with copper content could have a much higher knock-on effect on China’s exports.

July 3, 2025: US lifts export ban on key chip design software and technology to China

The Bureau of Industry and Security (BIS) of the US Department of Commerce has informed companies providing electronic design automation (EDA) software that they can proceed to export their services to China without a license, the implicated companies have confirmed to reporters.

On May 23, the “big three” American EDA software providers – Cadence, Synopsys, and Siemens – received letters from the BIS stating that they would require export licenses in order to provide their chip design software and technology to China.

In a statement published on its website, Siemens said it had been notified by the BIS that the export restrictions on EDA software and technology to customers in China are no longer in place. The company added that as a result, it has “restored full access to software and technology [..] and we have resumed sales and support to Chinese customers.”

The lifting of the EDA export ban is likely tied to the deal that was reached between the US and China last week. The deal, which has not been released to the public but has been confirmed by both US and Chinese officials, will see China approve export licenses for rare earths and other critical materials in exchange for the US lifting its countermeasures taken against China.

According to Reuters, the US also sent letters to ethane producers to “rescind a restrictive licensing requirement on exports to China imposed in late May and June”, in another likely effort to uphold their end of the deal.

June 27, 2025: US and China officials say deal to speed up rare earth licenses has been reached

On Thursday, June 26, Trump told reporters that the US had signed a deal with China the previous day to facilitate the export of rare earths to the US. This was later reaffirmed by US Commerce Secretary Howard Lutnick, who, speaking to Bloomberg on Friday, stated that China would begin to provide rare earths to the US in exchange for the US taking down its countermeasures against China.

On Friday, the Chinese Ministry of Commerce (MOFCOM) confirmed some of the details, stating that China will “approve the export applications of controlled items that comply with the conditions set out in the law” in exchange for the US lifting a “series of restrictive measures taken against China”.

While the details of the deal have not yet been released, the statements from officials suggest significant progress has been made on one of the central issues stymying trade talks ahead of the August 12 deadline set in the Geneva deal reached in May.

In the broader context of US-China trade relations, the scope of the deal is still likely to be limited, focusing on implementing the agreements made in the Geneva deal, which mainly rolls back actions taken since April 2, rather than tackling long-standing disputes.

June 16, 2025: US Commerce Department expands 50% steel tariff to household appliances

On Monday, the Bureau of Industry and Security (BIS) of the US Department of Commerce published a notice adding several household appliances to the tariff list of steel-derivative items, meaning they will be subject to an additional 50 percent tariff when imported into the US. The new tariff, which will be levied on the proportion of steel contained in the product rather than the entire item, will come into effect on June 23, 2025.

The notice follows a proclamation signed by President Trump on June 3 raising the tariff rate on steel and aluminum products, as well as derivative articles, from 25 to 50 percent, effective June 4.

The “steel derivative items” now subject to the 50 percent tariff are:

1. Combined refrigerator-freezers (HTSUS: 8418.10.00)
2. Small and large dryers (HTSUS: 8451.21.00 and 8451.29.00)
3. Washing machines (HTSUS: 8450.11.00 and 8450.20.00)
4. Dishwashers (HTSUS: 8422.11.00)
5. Chest and upright freezers (HTSUS: 8418.30.00 and 8418.40.00)
6. Cooking stoves, ranges, and ovens (HTSUS: 8516.60.40)
7. Food waste disposals (HTSUS: 8509.80.20)
8. Welded wire rack (HTSUS: 9403.99.9020)

The combined value of imports of products under these HTSUS subheadings from China in 2024 was almost US$3 billion, per data from ITC Trade Map. While the majority of these products will be taxed on their steel content, welded wire rack products will also be taxed on their aluminum content.

As the duty is only applied to the proportion of steel or aluminum contained in the product, it will not impact all household appliances entering the US equally. A representative from the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) told Caixin that the tariff will negatively impact exporters of large appliances like washing machines that contain higher levels of steel, but will have limited reach on other product categories, noting that “the steel and aluminum content in many Chinese-made appliances typically ranges from 15% to 30%.”

June 11, 2025: US and China agree on trade “framework” following meetings in London; current tariff rates unchanged

Following two days of meetings between senior Chinese and US officials in London on June 9 and 10, the two sides have agreed on a framework agreement to uphold the terms of the Geneva trade deal reached in May.

Although details of the framework had not been released, Trump told reporters on Wednesday that “We made a great deal with China. We’re very happy with it,” adding that “We have everything we need, and we’re going to do very well with it.”

Speaking at a press briefing following the meetings, China International Trade Representative at the Ministry of Commerce, Li Chenggang, said that the two sides had “agreed in principle the framework for implementing consensus between the two heads of state during their phone talks on June 5, as well as those reached at Geneva talks”.

In a post on Truth Social, Trump said that the deal with China is “done, subject to final approval” from Trump and Xi Jinping. He also suggested that disagreements over Chinese exports of rare earth metals have been resolved, stating that China will supply full magnets and any necessary rare earths “up front”. Trump also said that the US will provide China “what was agreed to”, which includes continuing to allow Chinese students to attend US universities, suggesting the US is stepping back from previous threats to revoke Chinese student visas and pausing new visa applications.

He also said that the US is getting “a total of 55% tariffs, China is getting 10%”, suggesting that the current tariff arrangements will remain in place. US Commerce Secretary Howard Lutnick confirmed to reporters on Wednesday that the 55 percent tariff rate on China will remain unchanged.

The 55 percent tariff consists of the worldwide 10 percent minimum baseline tariff imposed since April 2, 2025, the 20 percent “fentanyl” tariffs imposed since March 4, 2025, and the 25 percent Section 301 tariffs on most Chinese goods in place since Trump’s first term in office.

Without more concrete details on the framework agreement, it is unclear exactly which terms have been agreed upon and whether the disagreements and misunderstandings surrounding rare earth metals (see June 9 entry) have been resolved.

June 9, 2025: US and China officials begin trade talks in London, focus likely to be on issuance of rare earth export licenses

On Monday, Chinese Vice Premier He Lifeng met with US counterparts, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer, in London for the first meeting of the “China-US economic and trade consultation mechanism“. This mechanism, as it has been called by the Chinese side, was established during the trade meetings held in May, which led to the Geneva trade deal.

The meetings will continue on Tuesday, and while little official information has been released, talks are likely to focus on resolving misunderstandings surrounding China’s issuance of rare earth export licenses.

As part of the Geneva trade deal, China agreed to suspend or remove non-tariff countermeasures it took against the US since Trump imposed reciprocal tariffs on April 2, 2025. However, there has been significant disagreement over the exact extent of China’s obligations under the agreement.

On April 4, China imposed export restrictions on seven types of rare earth metals that have “dual-use” attributes, requiring exporters to apply for an license to export these products. These restrictions apply worldwide, not just to exports to the US, and applications take 45 days to process, as prescribed in the Provisions on Export Control of Dual-Use Items.

It appears that the US side expected China to remove the license requirement entirely, or to significantly expedite the processing of applications for products headed for the US. However, as the restrictions apply to all countries, not just the US, and the processing timeline and requirements are stipulated in Chinese law, it was always highly unlikely that China would make such an accommodation for the US without further incentives.

China has already begun approving some export license applications.

The call held between Presidents Xi and Trump on June 5 seems to have cleared up some of these misunderstandings, but what exactly was discussed is not yet clear. China could yet provide some concessions on this issue if reciprocal arrangements are made. According to Reuters, White House economic adviser Kevin Hassett told reporters that “the U.S. was likely to agree to lift export controls on some semiconductors in return for China speeding up the delivery of rare earths”.

June 5, 2025: Xi and Trump hold phone call, indicate future in-person meeting

President Xi Jinping and President Trump spoke over the phone on Thursday, helping to diffuse mounting tensions over trade and export controls. The discussion came as both sides accused the other of failing to live up to the terms of the trade agreement reached in mid-May.

In a post published on his social media platform Truth Social, Trump said that the call, which lasted around and hour and a half, revolved around “some of the intricacies of our […] Trade Deal”, and resulted in “a very positive conclusion for both Countries.” While he did not provide many details, he said the two exclusively discussed trade matters, but added that “There should no longer be any questions respecting the complexity of Rare Earth products”. This indicates that the two discussed China’s export restrictions on certain rare earth metals, one of the core sticking points in the trade negotiations.

Trump also said that Chinese officials and officials from the Trump administration will soon meet “at a location to be determined”, with the US side being represented by Secretary of the Treasury Scott Bessent, Secretary of Commerce Howard Lutnick, and United States Trade Representative Jamieson Greer.

Trump also claimed that Xi invited to Trump to visit China, to which Trump extended a reciprocal invite.

According to a statement published by Xinhua, Xi called for more dialogue and cooperation, stating that the US and China should “enhance dialogue in fields such as diplomacy, economy and trade, military, and law enforcement”.

Although Trump said the two only discussed trade matters, the Xinhua readout said that Xi warned the US to be cautious when handling the Taiwan issue, and “to avoid allowing a small number of “Taiwan independence” separatists from plunging the US and China into the dangerous situation of conflict and confrontation”.

According to the Xinhua readout, Trump stated that he had the utmost respect for Xi, and that the US welcomes China’s sustained economic growth. He also reiterated that the US will adhere to the One China policy.

May 31, 2025: Trump doubles steel and aluminum tariffs to 50% from June 4

President Trump has announced that the US will raise the tariff on all steel and aluminum imports into the US from 25 percent to 50 percent starting June 4.

Trump first imposed a 25 percent tariff on steel and aluminum imports arriving from all countries under Section 232 of the Trade Expansion Act of 1962 in early February.

Many steel and aluminum products of Chinese origin are already subject to a 25 percent tariff under Section 301 of the Trade Act of 1974. The so-called 20 percent “fentanyl” tariff on Chinese goods imposed in February and March under the International Emergency Economic Powers Act (IEEPA) will also apply to these goods. However, the “reciprocal” tariff (currently at 10 percent) will not apply, as goods subject to Section 232 tariffs have been excluded from this tariff.

Starting June 4, the final tariff rate on Chinese steel and aluminum products will be at least 70 percent. For products also covered by Section 301, the total rate will exceed 95 percent.

Chinese steel and aluminum have faced Section 301 tariffs since Trump’s first term, leading to a sharp decline in direct exports to the US in recent years. While the latest tariff hike is unlikely to significantly affect China’s direct shipments to the US, the global scope of the new rates could further hit Chinese steel and aluminum exports to third countries that re-export these products to the US.

May 29, 2025: US Commerce Department orders companies to stop exports of key chip materials and software to China, according to reports

The US Department of Commerce (DOC) has ordered various American companies to cease providing key software and materials needed for the design and production of chips to China, according to media reports citing unnamed sources.

According to Reuters, the DOC will require these companies to receive a license before being permitted to export the products to China, and some licenses previously granted have been revoked.

Among the companies that received letters from the DOC’s Bureau of Industry and Security (BIS) are Cadence, Synopsys, and Siemens EDA, the “big three” in electronic design automation (EDA), a critical software needed for the design of semiconductors. These companies, which received the order a week ago, will now require licenses to sell their software to China.

Other products that have been targeted include chemicals for semiconductors, such as butane and ethane, as well as machine tools and aviation equipment, according to Reuters. However, the US government has not yet made the orders public.

A spokesperson from China’s Ministry of Commerce (MOFCOM) on Monday, June 2 condemned the move, saying that it, along with the decision made on May 28 to start revoking the visas of Chinese students, “seriously violate the consensus reached by the two heads of state on January 17, seriously undermine the existing consensus of the Geneva talks, and seriously damage China’s legitimate rights and interests.”

Commenting on accusations from President Trump that China had “totally violated” the agreement reached in Geneva in May, the spokesperson said that the US “has turned the tables and unreasonably accused China of violating the consensus, which is seriously contrary to the facts”.

May 28, 2025: US State Department says it will start “aggressively” revoking Chinese students’ visas

A statement from the US Secretary of State Marco Rubio said the State Department will work with the Department of Homeland Security to “aggressively revoke visas for Chinese students, including those with connections to the Chinese Communist Party or studying in critical fields”. Visa criteria will also be revised to “enhance scrutiny of all future visa applications from the People’s Republic of China and Hong Kong.”

This move comes amid the US’s broader crackdown on international students as part of Trump’s agenda to reduce immigration to the US. A day earlier, Rubio had reportedly ordered US embassies and consulates to halt all new visa application appointments with international students, and that new procedures will be put in place to vet the students’ social media accounts. 

Last week, Trump attempted to prevent Harvard from sponsoring international student visas, although this has been temporarily halted by a judge. However, Trump officials told CNN on Wednesday that the State Department will now be reviewing all Harvard-afiiliated visas, including student, business, and work visas.

China has strongly condemned this announcement. In a statement to media on Thursday, Foreign Ministry Spokespoerson Mao Ning called the move “political and discriminatory practice by the United States” and that it will “fhas seriously damaged the legitimate rights and interests of Chinese students and interfered with normal cultural exchanges between the two countries”.

The spokesperson also said China has formally disputed the matter with the US.

May 28, 2025: US federal court blocks fentanyl and reciprocal tariffs, ruling Trump exceeded authority 

Judges at the US Court of International Trade on Wednesday ruled that Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs on all global trade partners exceeded his authority, giving the administration 10 days to remove the reciprocal tariffs imposed since April 2, and the tariffs related to fentanyl trafficking placed on China, Canada, and Mexico..

The ruling was for two cases brought against the US government and its customs and trade agencies, one by a group of five small businesses and the other by 12 US states.

According to the court’s slip order, “The court does not read IEEPA to confer such unbounded authority [to impose unlimited tariffs on goods from nearly every country] and sets aside the challenged tariffs imposed thereunder.” Instead, the authority to impose such tariffs lies with Congress.

The Trump administration has appealed the ruling, with the possibility that the case will end up in the Supreme Court.

The ruling, if it stands, will impact the following tariffs currently imposed on China:

• The 20 percent “fentanyl” tariffs imposed since March 2025
• The “reciprocal” tariff imposed since April 2, 2025 (10 percent as of May 14, rising to 30 percent after 90 days)

The ruling will not affect sector-specific tariffs, such as the tariffs on steel, aluminum, and vehicles, as well as the China-specific Section 301 tariffs.

While the ruling has brought hope to many businesses and countries around the world, it is important to note that the decision is not final, and that the US government has other ways of imposing blanket tariffs on all goods and trade partners. Analysts at Goldman Sachs told CNBC that the administration could instead invoke Section 122 or Section 301 of the Trade Act of 1974, or Section 338 of the Trade Act of 1930. This means that the ruling will likely only be a temporary setback for the administration.

Nonetheless, the Trump administration had partly framed the sweeping tariffs as a bargaining tool in trade negotiations with key partners such as the EU, India, and China. This ruling significantly undermines the US’s negotiating position by casting doubt on whether the tariffs can be maintained at all.

May 20, 2025: US Department of Commerce Alleges China Unfairly Subsidizes Key Battery Materials in Preliminary Determination, Paving Way for Countervailing Duties of up to 721%

The US Department of Commerce (DOC) issued a preliminary affirmative determination in a countervailing duty investigation into active anode materials from China. The determination states that China is unfairly subsidizing producers of these key materials, with rates ranging from 6.55 percent to 721.03 percent, to the detriment of US producers.

The active anode materials, which include graphite and silicone materials, are crucial for the production of electric vehicle batteries. The investigation was petitioned by the American Active Anode Material Producers, an ad hoc trade association representing American graphite producers, in December 2024. According to Bloomberg, the petitioners initially sought anti-subsidy tariffs of up to 920 percent.

The DOC will issue its final determination on September 29, 2025, after which the International Trade Commission (ITC) will issue its final determination and final order on the duties in November 2025.

This paves the way for potential anti-subsidy tariffs of up the 721.03 percent on certain Chinese producers – namely Huzhou Kaijin New Energy Technology Corp., Ltd. and Shanghai Shaosheng Knitted Sweat – as well as a 6.55 percent tariff on all other Chinese companies

The DOC is concurrently conducting an antidumping duty investigation into active anode materials from China.

May 18, 2025: China Announces Anti-Dumping Tariffs of up to 74.9% on POM Copolymers from US, EU, Taiwan, and Japan

On May 18, 2025, China’s Ministry of Commerce (MOFCOM) announced a 74.9 percent anti-dumping tariff on US exports of polyformaldehyde copolymer (POM copolymer), following the conclusion of a year-long investigation. MOFCOM determined that US, EU, Taiwanese, and Japanese producers were dumping POM copolymers into the Chinese market at unfairly low prices, causing material injury to China’s domestic industry. The tariffs will take effect on May 19, 2025, and remain in place for five years.

POM copolymer is a high-strength thermoplastic used in products such as automotive parts, electronics, industrial machinery, consumer goods, medical equipment, and construction materials. It is valued for its durability, fatigue resistance, and ability to substitute for metals like copper and zinc. The tariffs apply specifically to products classified under Chinese customs codes 39071010 and 39071090.

The ruling imposes company-specific duties: all US exporters, including Ticona Polymers, face a uniform 74.9 percent rate. EU companies such as Celanese Production Germany are subject to a 34.5 percent tariff. Taiwanese firms Polyplastics Taiwan and Formosa Plastics received lower duties of 3.8 and 4 percent, respectively, while other Taiwanese exporters face 32.6 percent. Japanese firms, including Polyplastics Co. and Asahi Kasei, face duties of 35.5 and 24.5 percent, respectively.

Importers must pay the anti-dumping duties based on the customs-assessed value of the goods, with import VAT levied on the total value, including tariffs and duties. Deposits collected during the preliminary period from January 24 to May 18, 2025, will be converted into final anti-dumping duties. Overpayments will be refunded, while underpayments will not be collected.

May 13, 2025: US Commerce Department warns US companies against use of Chinese-made ICs, including specific Huawei Ascend chips

The Bureau of Industry and Security (BIS) of the US Department of Commerce has issued new guidance for US companies and individuals, warning them against using Chinese-made advanced computing integrated circuits (ICs). The move comes just one day after the US and China reached a trade deal to lower reciprocal tariff rates and roll back other non-tariff countermeasures.

The original BIS announcement, released on May 12, initially warned companies against using the ICs “anywhere in the world”, but updated the guidance to remove this wording a day later.

The guidance claims that these ICs were “likely developed or produced in violation of U.S. export controls”, and their use therefore violates General Prohibition 10 (GP10) of the Export Administration Regulations (EAR).

The GP10 lists 10 prohibitions of the export, re-export, or in-country transfer of commodities, software, and technology subject to the EAR. GP10 also prohibits US companies and individuals from proceeding with a transaction if they know that such a transaction has or will involve an item that is in violation of the EAR.

The guidance states that the use of Chinese-made ICs, including specific Huawei Ascend chips, could violate the tenth prohibition of GP10 that bars any use or handling of items subject to US export controls if the person or company knows or has reason to know that they are linked to a past, present, or intended violation of US export laws. 

The guidance lists the Huawei Ascend 910B, Huawei Ascend 910C, and Huawei Ascend 910D chips as examples of ICs that are likely subject to US export controls under the EAR. According to the BIS, these chips may be in violation of the EAR as they are likely to have been designed with US software or technology or produced with semiconductor manufacturing equipment that is the direct product of US-origin software or technology, or both, which was prohibited without a BIS license.

The guidance goes on to warn that the use of these ICs without authorization from the BIS could result in severe penalties “up to and including imprisonment, fines, loss of export privileges, or other restrictions”.

Another guidance issued by the BIS also warns companies and individuals that certain activities related to the transfer or support of advanced computing ICs for AI model training may require authorization from the BIS, especially when there is knowledge that the technology will be used for or on behalf of certain countries and regions (including China and Macau) for military-intelligence or WMD-related purposes.

A spokesperson for China’s Ministry of Commerce condemned the guidance from the BIS, stating that the US has “abused its export control measures and imposed stricter restrictions on Chinese chip products under unfounded allegations”. The spokesperson added that the announcement “undermined Chinese companies’ legitimate rights, threatened the stability of global semiconductor supply chains, violated market rules and disrupted international trade order”.

May 13, 2025: US Reduces De Minimis Tariff Rates but Costs Remain High for Small Parcels

The Trump administration has lowered the de minimis tariff rate on parcels from the Chinese mainland and Hong Kong from 120 percent to 54 percent, aligning with the recent US-China agreement to reduce reciprocal tariffs.

The de minimis rate was first raised to 54 percent on April 2, the same day Trump imposed the so-called “Liberation Day” tariffs on multiple trade partners, including China. It was subsequently increased twice, reaching 120 percent or a US$100 per-item fee effective May 2, with plans to raise the fee to US$200 from June 1. Following the weekend agreement to lower reciprocal tariffs to 10 percent — the US’s baseline minimum tariff — the administration reduced the de minimis rate to 54 percent but maintained the US$100 per-item fee, canceling the scheduled June 1 increase to US$200.

Despite the reduction, the cost of importing small parcels remains significantly higher than before, when they entered duty-free. This change represents a substantial shift for small businesses and consumers accustomed to low-cost, duty-exempt imports. While the reduction from 120 percent to 54 percent may ease some of the financial burden, the added costs and maintained per-item fee still present a formidable barrier to cost-effective importing, particularly for e-commerce platforms such as Shein and Temu.

May 12, 2025: China and US agree to reduce reciprocal tariffs to 10%

On Monday, May 12, 2025, the White House and China’s Ministry of Commerce (MOFCOM) released a joint statement in which they committed to lowering reciprocal tariff rates from 125 percent to just 10 percent for a period of 90 days. The existing 20 percent tariff on Chinese goods will remain in place, meaning the final tariff rate on Chinese goods will be 30 percent.

The agreement follows a meeting between Chinese Vice Premier He Lifeng, the US Secretary of the Treasury Scott Bessent, and US Trade Representative Ambassador Jamieson Greer, in Geneva over the weekend.

The agreement sees both sides commit to entirely cancel the higher reciprocal tariff rates imposed in succession from April 9. The 34 percent rate initially imposed by the US on April 2 and by China on April 4 has been amended to 10 percent for an initial period of 90 days. This suggests that, should no further deal be reached in the next 90 days and this period is not extended, the tariff rate will return to 34 percent, not 125 percent.

In addition to lowering the duties, China has agreed to suspend or remove other non-tariff countermeasures it has taken against the US since the reciprocal tariffs were first imposed on April 2, 2025.

In the joint statement, China and the US committed to establishing a mechanism for ongoing trade discussions, led by Vice Premier He for China and Greer and Bessent for the US. While specific concessions remain unclear, potential topics include reducing the US trade deficit and increasing US market access in China, similar to the 2020 Phase One deal. Despite the agreement, the 10 percent baseline tariff will likely remain, as seen in a recent US-UK trade deal. The US’s US$295.4 billion trade deficit with China remains a central concern, though past attempts to reduce it, including China’s commitment to purchase $200 billion in US goods under the Phase One deal, were not fully realized. The new framework nonetheless offers a potential path for more substantive negotiations in the future.

May 7, 2025: Chinese and US Officials to Meet in Geneva on Saturday and Sunday

Chinese Vice Premier He Lifeng will meet with the US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer in Geneva during the Vice Premier’s visit to Switzerland between May 9 and 12, the Chinese Foreign Ministry has confirmed.

This will be the first meeting between Chinese and US officials since Trump instigated a global trade war that culminated in a 145 percent on Chinese goods and a 125 percent counter-tariff on US goods.

In a statement to reporters, China’s Ministry of Commerce (MOFCOM) said that China agreed to the meetings “on the basis of fully considering global expectations, China’s interests, and the calls of the US industry and consumers”. The statement also warned that the US would have to “face up to the serious negative impact of unilateral tariff measures on itself and the world” if it wanted to resolve the dispute through negotiations, and that China would never agree to any “attempt to continue to coerce and blackmail under the guise of talks”.

In an interview with Fox News, Bessent said that the current situation “isn’t sustainable” and that the two-way tariffs are the equivalent of “an embargo”. He added that he believed the meetings would be more about “de-escalation” rather than a trade deal. When asked whether the US would consider lowering the tariff rate on China in the interim as a show of good faith, Bessent said that “everything is on the table”, but that Trump would be happy to treat China as he does other trading partners and “ratchet the number back up” if no deal was reached.

The meetings mark a major diplomatic breakthrough after weeks of suggestions that talks were underway. On May 2, MOFCOM confirmed to the media that the Trump administration has sought to “convey information” to China and that China is “currently evaluating” the US’s attempts to hold negotiations on trade. In recent weeks, US officials and the president himself have stated that the US is in talks with China over the tariffs and trade, however, China denied that any discussions were taking place.

In the Fox News interview, Bessent also said that the US “does not want a decoupling” from China. However, he clarified that while the US will continue to buy low-value goods such as textiles and footwear from China, it did want to decouple over “strategic industries” that affect national security, and that the US will seek to “bring back” domestic strategic and precision manufacturing of products such as steel, semiconductors, and medicine.

April 22 to 24, 2025: Trump administration signals tariff easing in coming weeks dependant on deal, but negotiations with China still not underway

The Trump administration has indicated that it may reduce the tariff rate on China in the near future, but that this decision would depend on potential negotiations and a trade deal.

President Trump told reporters on Tuesday that the 145 percent tariff on Chinese goods is likely to come down. According to CNN, Trump told reporters that “145% is very high and it won’t be that high,” and that “ It’ll come down substantially. But it won’t be zero.”

The statement follows comments made by the US Treasury Secretary Scott Bessent, who told a group of investors at a closed-door meeting earlier that day, “No one thinks the current status quo is sustainable, at 145 and 125 [per cent], so I would posit that over the very near future, there will be a de-escalation.”

On Wednesday, Trump told reporters that he would announce new tariff rates on trading partners including China over the next few weeks, but that the tariffs rates “depends on them”. He also added that if the US does not strike a deal with a company or country, then “we’re going to set the tariff.”

The Trump administration had also indicated that the US were currently in talks with China over a potential trade deal. Also on Wednesday, he told reporters that the US was “actively” talking to China. However, this has been refuted by both China and members of Trump’s team. Also on Wednesday, the Treasury Secretary told reporters that negotiations had not yet begun. However, an anonymous White House official told Politico that the two statements are not contradictory, clarifying that while there are “always active conversations” and “open lines of communication” between the US and China, the Treasury Secretary did not want to overstate the level of progress that has been made on negotiations.

Speaking at a regular press conference on Thursday, Chinese Foreign Ministry Spokesperson Guo Jiakun also refuted that any discussions were taking place, telling reporters that “None of that is true. For all I know, China and the U.S. are not having any consultation or negotiation on tariffs, still less reaching a deal.”

At a press conference a day earlier, Guo said that China’s “doors are open, if the U.S. wants to talk”, but warned that continued pressure on China would not lead to a deal, stating that “to keep asking for a deal while exerting extreme pressure is not the right way to deal with China and simply will not work”.

On Wednesday, the Financial Times reported that Trump was considering exempting car parts from the China tariffs. However, car parts would still be subject to the 25 percent levy on all auto imports to the US that Trump imposed in early April.

April 21, 2025: US Commerce Department imposes steep tariffs on Chinese-made solar cell imports from Southeast Asia

On Monday, the US Department of Commerce (DoC) announced its final determinations in anti-dumping (AD) and countervailing duty (CVD) investigations into solar cells from Cambodia, Malaysia, Thailand, and Vietnam. The investigations were launched in May 2024 under the Biden administration following a petition from First Solar, Inc., Hanwha Q CELLS USA, Inc., and Mission Solar Energy LLC.

Preliminary CVD and AD rates were implemented in October and November 2024.

According to the DoC, the CVD investigation found that “imports of solar cells from Cambodia, Malaysia, Thailand, and Vietnam are being dumped into the U.S. market and receiving countervailable subsidies”. The investigation alleges that Chinese solar companies with operations in these four countries are receiving subsidies from China.

The AD and CVD rates range widely between companies and countries. For instance, CVDs range from a low of 14.64 percent on imports from Hanwha Q CELLS in Malaysia to 3,403.96 percent on imports from four companies in Cambodia. According to Reuters, the combined AD tariff and CVDs on Jinko Solar products from Malaysia were subject to one of the lowest rates at 41.56 percent, while Trina Solar’s products from Thailand are subject to a rate of 375.19 percent.

The International Trade Commission (ITC), a separate federal agency from the DoC, will have until June 2, 2025, to make its final determination on harm caused to US industries by the alleged dumping activities and subsidies. The final AD tariffs and CVD rates will be imposed if the ITC affirms the DoC’s findings.

US tariffs on Chinese solar cells date back to 2012, when the Obama administration imposed duties of approximately 36 percent on Chinese solar products. As a result, direct imports from China to the US have sharply declined. In response, Chinese manufacturers have attempted to bypass these tariffs by shifting production to Southeast Asian countries not subject to the duties. If the new tariffs are finalized by the ITC, they are expected to significantly hinder Chinese companies’ ability to access the US market. According to the International Trade Administration (ITA), the US imported $11.9 billion worth of solar cells from Cambodia, Malaysia, Thailand, and Vietnam in 2023.

April 17, 2025: US to implement fees on Chinese vessels docking at US ports

The US Trade Representative (USTR) has announced it will begin to implement fees on Chinese vessels docking at US ports, as part of an effort to counter what the US claims are “China’s unreasonable acts, policies, and practices to dominate the maritime, logistics, and shipbuilding sectors.”

These fees mark a continuation of initiatives to strengthen the US shipbuilding industry, which began during the Biden administration. The decision aligns with an executive order (EO) signed by President Trump on April 9, declaring that it is the policy of the US “to revitalize and rebuild domestic maritime industries and workforce to promote national security and economic prosperity.”

According to the EO, “the United States constructs less than one percent of commercial ships globally, while the People’s Republic of China (PRC) is responsible for producing approximately half.”

In accordance with this policy, the EO directed the USTR to “take appropriate steps to enforce any restriction, fee, penalty, or duty imposed pursuant to such actions” related to China’s shipbuilding practices.

The fees follow a Section 301 investigation initiated exactly one year earlier under the Biden administration. The investigation examined “longstanding efforts to dominate the maritime, logistics, and shipbuilding sectors, cataloguing the PRC’s use of unfair, non-market policies and practices to achieve those goals.” Its findings, released on January 16, 2025, concluded that “China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance is unreasonable.”

A public hearing on proposed actions stemming from the investigation’s findings was held by the USTR on March 24 and 26.

The fees will be introduced in two phases.

The first phase will start after 180 days from April 17. A US$0 fee will be applied in the interim 180 days. After this period, the following fees will be phased in:

• Fees on vessel owners and operators of China: Charges will be based on net tonnage (NT) per US voyage, starting at US$50/NT and increasing incrementally to US$140/NT over the next three years.
• Fees on operators of Chinese-built ships: Charges will be based on NT or containers. For arriving vessels, fees will increase from US$18/NT to US$33/NT. For each container discharged, fees will rise from US$120 to US$250 over the next three years.
• Fees on foreign-built vehicle carriers: To incentivize the use of US-built car carriers, operators of non-US-built vessels will be charged US$150 per Car Equivalent Unit (CEU) of capacity.

Phase two will begin after three years:

• To encourage the use of US-built liquified natural gas (LNG) vessels, the US will begin imposing limited restrictions on the transportation of LNG by foreign vessels. These restrictions will gradually increase over a 22-year period.

Further actions to limit China’s shipbuilding industry will likely follow. The EO also called for the USTR to explore additional steps to support the US maritime industry, including potential tariffs on ship-to-shore cranes and other cargo handling equipment. The USTR is currently soliciting public comments on these proposals.

In response to the April 17 announcement by the USTR, China’s Ministry of Commerce (MOFCOM) stated that China is “strongly dissatisfied and firmly opposed” to the decision. Speaking to the media, a MOFCOM spokesperson said the move is unilateralist and protectionist, calling it a discriminatory, non-market approach that violates WTO rules, harms Chinese companies, disrupts supply chains, and undermines the rules-based international trade system. The spokesperson also noted that during the hearings, most industry representatives, including international voices, opposed the measure, but that the US still “insisted on taking unilateral action and released the relevant restrictive measures.”

The spokesperson also warned that China will closely monitor developments and “take necessary measures to safeguard its own rights and interests”, suggesting possible countermeasures.

April 11, 2025: US grants tariff exemption for smartphones, computers, and other electronics arriving from China

In an executive order signed on Friday, Trump exempted a range of electronic products and components from the reciprocal tariffs, including computers (including parts and accessories for their assembly), smartphones, flat panel displays, SSDs, computer monitors, various types of semiconductors, and integrated circuits. The exemptions are effective retroactively from April 5.

Currently, the only US reciprocal tariff still in effect is the 125 percent tariff on Chinese goods, meaning the exemption is intended for these products arriving from China.

While these goods are exempted from the 125 percent reciprocal tariff, the 20 percent tariff that Trump imposed on China in February will remain in place on these goods. Moreover, the US, under the Biden administration, placed a 50 percent tariff on Chinese semiconductors, taking effect in 2025.

Trump has also warned that the exemption will not be permanent, stating that semiconductors and the electronics supply chain will be looked at in the upcoming National Security Tariff Investigations.

April 11, 2025: China raises tariff on US goods to 125%, says it will no longer respond to US tariff hikes

The State Council Tariff Commission announced on Friday that it will further raise the tariff on US imports from 84 percent to 125 percent, matching the reciprocal tariff rate Trump imposed on China on April 9. The new tariff rate will take effect on April 12.

The announcement also once again stated that the US’s imposition of abnormally high tariffs on China “seriously violates international trade rules” and is an act of “unilateral bullying and coercion”.

Notably, the announcement also stated that, given that importing goods from the US to China will not be viable at the current tariff rate, China will no longer respond to any further tariff hikes from the US side.

However, speaking at a regular press conference on Friday, Foreign Spokesperson Li Jian repeated the line that “China will fight to the end” if the US continues its escalations and that “China does not wish to fight, but it is not afraid to fight.” He also called for resolving the issue through dialogue and negotiation “based on equality, mutual respect, and reciprocity”.

April 10, 2025: White House clarifies China tariff rate now 145%

A White House spokesperson clarified to CNBC on Thursday that the 125 percent reciprocal tariff rate imposed on China would be in addition to the 20 percent tariff imposed on China prior to April 2, bringing the final tariff rate to 145 percent.

Moreover, the CNBC reporter found that the 145 percent tariff is the minimum tariff, meaning it will be levied on top of any other existing tariffs. This would include the Section 301 tariffs imposed during Trump’s first term, as well as the tariffs imposed by Biden on electric vehicles, solar panels, semiconductors, and other products.

Trump’s initial executive order imposing reciprocal tariffs on global trade partners, including China, exempts certain items from the reciprocal tariffs, such as the 25 percent levy on steel and aluminum implemented in February. However, in practice, this would not apply to China as the Biden administration already imposed a 25 percent duty on these products coming from China in 2024.

April 9, 2025: China promises policy support to help weather impacts of trade war

At a symposium with economic experts and entrepreneurs on April 9, Chinese Premier Li Qiang emphasized the importance of strengthening economic efforts in the second quarter and beyond amid the challenges posed by the escalating trade war with the US.

Li pledged more proactive and impactful macroeconomic policies, calling for the swift implementation of existing measures and the timely introduction of new, targeted stimulus policies to counter external uncertainties. He stressed the need to reinforce the domestic economic cycle, viewing the expansion of domestic demand as a long-term strategy.

Key priorities include stabilizing employment, increasing household incomes, and boosting service consumption alongside efforts to modernize consumer goods. Li also highlighted the importance of integrating technological and industrial innovation to enhance the quality and responsiveness of supply.

To support businesses, Li called for the full implementation of supportive policies, improved law enforcement practices related to enterprises, and concrete solutions to persistent issues such as delayed payments and expensive or difficult financing. The goal, he said, is to create a better environment and policy support system to help companies overcome development challenges.

April 9, 2025: US further raises de minimis duty to 120%

In the executive order signed on Wednesday raising the reciprocal tariff on China to 125 percent, the Trump administration again raised the duties and fees for de minimis parcels arriving from the Chinese mainland and Hong Kong. The new duties are as follows:

• An ad valorem tariff of 120 percent on the declared value of the parcel (up from 90 percent); or
• A per-item rate of US$100 (up from US$75) from May 1, rising to S$200 (up from US$150) from June 1.

April 9, 2025: US further raises tariff on China to 125%, pauses reicprocal tariffs on other countries

In a post on Truth Social on Wednesday, President Trump announced that the tariff rate on China will raise further to 125 percent, effective immediately. The action comes on the same day as China raised the tariff on US goods to 84 percent, matching the US’s previous tariff rate that also came into effect on April 9.

In the same post, Trump announced a 90-day pause in the reciprocal tariffs placed on all other countries, with the 10 percent minimum base tariff to remain in place for all countries and regions.

While China has yet to announce a countermeasure to the latest escalation, speaking at a regular press conference on April 10, Foreign Ministry spokesperson Lin Jian said that “there are no winners in tariff wars and trade wars” and added that “China does not want to fight, but is not afraid of fighting”. He also reiterated that China will “fight to the end” should the US continues its escalations.

April 9, 2025: China retaliates with 84% tariff on US goods

China’s Ministry of Finance (MOF) has retaliated against the US’s imposition of a 104 percent tariff by raising the duty rate on US goods from 34 percent to 84 percent. The tariff hike comes on the same day as the US’s 104 percent tariff rate on Chinese goods took effect and matches the 84 percent “reciprocal” tariff announced by the Trump administration on April 8.

In its announcement, the MOF called Trump’s escalating tariffs “a mistake on top of a mistake” that “seriously infringes on China’s legitimate rights and interests and seriously damages the rules-based multilateral trading system”.

The new tariff rate will take effect on April 10. As of the time of writing, the US has yet to respond to China’s latest countermeasure.

April 9, 2025: Chinese Commerce Ministry places 12 US companies on export control list and 6 on unreliable entities list

On the same day Trump’s 104 percent tariff on Chinese goods took effect, the Chinese Ministry of Commerce (MOFCOM) placed an additional 12 American companies on the export control list and six on the unreliable entities list.

On April 4, MOFCOM placed 16 American companies on the export control list and 11 on the unreliable entities list (see April 4 entry).

The companies placed on the export control list include American Photonics, Novotech, Inc., Echodyne, and Firestorm Labs, Inc., all of which produce advanced technologies with potential (or explicit) military applications. According to MOFCOM, these companies were placed on the list “in order to safeguard national security and interests and fulfill international obligations such as non-proliferation”.

Meanwhile, the six companies on the unreliable entities list include Shield AI, Inc., Sierra Nevada Corporation, Cyberlux Corporation, and Hudson Technologies Co. Four of the six companies were already placed on the export control list on April 4.

Companies on the export control list will not be able to buy dual-use items from China, while the companies on the unreliable entities list will be prohibited from engaging in import and export activities related to China and from making new investments in China.

April 9, 2025: Trump raises tariff on China to 104%, raises de minimis duty to 90%

In an executive order signed on Tuesday, President Trump raised the reciprocal tariff rate on China from 34 percent to 84 percent, bringing the final rate to 104 percent. The additional 50 percent rate was implemented after China did not repeal the 34 percent duty it placed on US goods by April 8, as Trump had demanded. The 104 percent tariff, along with the reciprocal tariff rates placed on other countries, came into effect on Wednesday, April 9.

In addition to the higher flat tariff rate, the executive order also raised the duty rate and fees on de minimis shipments (small parcels for individual consumption under US$800 in value). The duty on these parcels had originally been raised to 30 percent of their value or a flat rate of US$25 (rising to US$50 from June 1) when Trump removed the de minimis exemption on parcels arriving from the Chinese mainland and Hong Kong on April 2. The rates, effective May 2, will now be as follows:

• A 90 percent ad valorem duty (up from 30 percent); or
• A flat duty of US$75 per postal item from May 2 (up from US$25), rising to US$150 per item from June 1 (up from US$50).

Speaking at a regular press briefing on Tuesday, Foreign Ministry Spokesperson Lin Jian stated that “China deplores and rejects” the suggestion of an additional 50 percent tariff and said that the US was engaging in “economic bullying”. He also stated that if the US is “determined to fight a tariff and trade war, China’s response will continue to the end”.

April 8, 2025: War of words escalates as Trump threatens additional 50% tariff on China

The Chinese government has pushed back against a threat from Donald Trump to further increase the tariff rate on Chinese goods.

In a post on Truth Social on Monday, Trump threatened an additional 50 percent tariff on Chinese goods if China does not withdraw the 34 percent tariff announced in retaliation for Trump’s reciprocal tariffs on China. The additional 50 percent tariff would be implemented from April 9 and would bring the final tariff rate on China to 104 percent.

In a message posted on its official website on Tuesday morning, a spokesperson for China’s Ministry of Commerce said that China “firmly opposes” the US’s threat of an additional 50 percent tariff, and that if it goes ahead with this escalation, “China will resolutely take countermeasures to safeguard its own rights and interests”. The spokesperson also called the threat “a mistake on top of a mistake” and an attempt by the US to “blackmail” China, and stated that China will “fight to the end”. However, the spokesperson also called on the US to “properly resolve differences with China through equal dialogue on the basis of mutual respect”.

April 4, 2025: Trump signs executive order delaying implementation of TikTok ban

Trump signed a second executive order on Friday delaying the ban on TikTok for another 75 days, one day before the ban was set to go into effect. This is the second executive order signed by Trump to delay the ban-or-sell deadline that was imposed by the TikTok divestment bill, which was signed into law by former President Joe Biden in April 2024.

According to reports, TikTok’s owner ByteDance was close to reaching a deal with the Trump administration to sell the US portion of TikTok, as required by the bill. However, this deal had been scuppered by the announcement of an additional 34 percent reciprocal tariff on Chinese goods on April 2.

It now appears likely that the Chinese government will seek to use the selling of TikTok as leverage in any potential trade negotiations with the US.

April 4, 2024: China’s market regulator launches antitrust probe into DuPont

In a brief statement on its website, China’s State Administration for Market Regulation (SAMR) announced it has initiated an investigation into DuPont China Group Co., Ltd., the Chinese subsidiary of the American chemicals giant DuPont, for suspected violations of China’s Anti-Monopoly Law. While SAMR did not provide any information on the basis for the investigation into DuPont, according to a notice posted on US Securities and Exchange Commission (SEC) website, the probe is in relation to DuPont’s Tyvek business. Tyvek is a trademarked synthetic polyethylene material that is used widely in a variety of civilian and military settings.

According to reporting by Chinese media, DuPont has held a monopoly over this material and sought to use litigation to suppress smaller companies in China that have developed new technologies with similar performance.

The announcement of this probe is likely timed to act as a response to the 34 percent additional reciprocal tariff that Trump imposed on China on April 2. After Trump’s initial 10 percent tariff placed on China in early February, SAMR launched an investigation into Google for suspected violations of the Anti-Monopoly Law.

April 4, 2025: China retaliates with 34% duty on all US goods, export curbs, and sanctions on US companies

China’s State Council Tariff Commission in an announcement on Friday placed an additional 34 percent tariff on all goods entering the country from the US. Any current bonded and tax reduction and exemption policies will remain in place.

The new tariff will take effect from April 10, 2025. However, goods that have been shipped prior to April 10 and arrive in China between April 10 and May 13, the new rate will not apply.

This rate exactly matches the 34 percent tariff imposed on China by the Trump administration on April 2. However, the rate applied to China is in addition to the preexisting 20 percent rate imposed by Trump, meaning the final tariff rate on China will be 54 percent when the reciprocal tariff goes into effect on April 9.

The 34 percent rate that China has applied on US goods will also be on top of any other existing tariffs for the applicable goods.

On the same day, China’s Ministry of Commerce (MOFCOM) and Customs Administrations placed export restrictions on seven different types of rare earths, namely various derivations of samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. A MOFCOM spokesperson stated that these items have “dual-use attributes”, and that the export controls are aimed at “better safeguarding national security and interests and fulfilling international obligations such as non-proliferation”.

MOFCOM also placed 16 American companies on the “export control list” and 11 American companies on the “unreliable entities list”.

The stated motive for this move is “to safeguard national security and interests and fulfill international obligations such as non-proliferation”. The companies placed on the export controls list, which are mostly defense companies, include High Point Aerotechnologies, Sierra Nevada Corporation, Hudson Technologies Co., and Cyberlux Corporation. The companies placed on the unreliable entities list include Skydio Inc., BRINC Drones, Inc., and Red Six Solutions. According to a statement from the MOFCOM spokesperson, these companies have “carried out so-called military and technical cooperation with Taiwan despite China’s strong opposition, seriously undermining China’s national sovereignty, security and development interests”.

Companies included on the export control list will be barred from purchasing certain goods and products from China. Meanwhile, the companies included on the unreliable entities list are prohibited from engaging in import and export activities related to China and may not make any new investments in China.

April 2, 2025: Trump reinstates end to de minimis exemption on Chinese parcels, effective May 2

On Wednesday, the same day the US tariff rate on Chinese imports was raised to 54 percent, President Donald Trump signed an executive order (EO) to once again end the de minimis exemption for parcels originating from the Chinese mainland and Hong Kong.

The de minimis exemption allows low-value packages – those worth under US$800 – to enter the US without customs duties or inspections. According to analysts, roughly four million packages per day entered the US under this exemption in 2024, many of them from Chinese e-commerce companies.

Trump had previously attempted to revoke the exemption as part of his February 1 tariff package but reversed the move within a week. On February 7, the White House issued an amendment delaying the change, following chaos at US logistics centers and customs warehouses. The US Postal Service had also temporarily suspended the acceptance of international parcels from the Chinese mainland and Hong Kong, but quickly reversed course.

The latest executive order claims that “adequate systems” are now in place to assess and collect duties on incoming parcels. As a result, the US will begin imposing duties on small-value packages from the Chinese mainland and Hong Kong starting May 2, 2025.

The Trump administration has justified the move by alleging that Chinese-based shippers use the de minimis channel to engage in deceptive shipping practices. The EO states that some Chinese exporters “hide illicit substances and conceal the true contents” of parcels, avoiding detection due to the limited screening associated with de minimis treatment. The White House has linked this to broader concerns about fentanyl trafficking, which it claims is facilitated in part through these small parcels.

Under the new rules, packages from mainland China and Hong Kong will be subject to the following duties:

• Ad valorem duty of 30 percent of the declared value of the postal item
• Specific duty:
  • US$25 per item between May 2 and May 31, 2025
  • US$50 per item beginning June 1, 2025

The EO directs the Secretary of Commerce to make an assessment of the potential impact of the order on American consumers and businesses, and provide a recommendation on whether the end of the exemption should also be extended to Macau “to prevent circumvention of this order”.

The end of the exemption is expected to have widespread implications for online retailers such as Shein, Temu, and Amazon, as well as for smaller US businesses that rely on low-cost Chinese imports. Analysts warn that the decision will also affect millions of American consumers by raising prices and causing delays at customs due to backlogs and new inspection protocols.

April 2, 2025 – Trump imposes sweeping tariffs, raising Chinese import duties to 54% 

​On April 2, 2025, President Donald Trump announced a comprehensive overhaul of US trade policy, introducing significant tariffs on imports from various countries. This “Liberation Day” initiative aims to address perceived trade imbalances and bolster domestic industries.​

Key highlights inlcude:

• Universal tariff: A baseline 10 percent tariff will be applied to all imports entering the United States. ​

• China-specific tariffs: Chinese imports will face an additional 34 percent tariff on top of the existing 20 percent, culminating in a total tariff rate of 54 percent.

• Tariffs on other nations: Vietnam, Thailand, Cambodia, the European Union, and Japan will be subject to new tariffs of 46 percent, 36 percent, 49 percent, 20 percent, and 24 percent, respectively.

• Sector-specific tariffs: Additional duties of 25 percent will be imposed on foreign automobiles, car parts, steel, and aluminum. ​

The universal 10 percent import tariff is set to take effect on April 5, 2025.​ The additional “reciprocal” tariffs targeting specific countries will commence on April 9, 2025. ​The additional 25 percent tariff on foreign automobiles, car parts, steel, and aluminum would go into effect at midnight, April 3, 2025.

The announcement has led to significant volatility in global financial markets. Analysts express concerns about potential inflationary pressures and disruptions to international trade. While supporters argue that these measures will revitalize American manufacturing and reduce reliance on foreign goods, critics warn of escalating trade tensions and possible retaliatory actions from affected nations. ​As the situation develops, stakeholders across various sectors are advised to monitor policy changes closely and assess their potential impact on international trade and economic stability.​

March 26, 2025 – US Trade Representative Jamieson Greer holds video call with Chinese Vice Premier He Lifeng

US Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng held a video call on March 26 to discuss the US-China economic and trade relationship. According to the US Trade Representative (USTR) readout, Greer emphasized President Trump’s commitment to a reinvigorated trade policy that strengthens domestic industry, safeguards national security, and ensures fair competition for American workers. He also raised concerns about China’s trade practices, which the US views as unfair and anticompetitive.

Meanwhile, according to the China State Council readout, Vice Premier He conveyed China’s concerns over additional US tariffs, particularly those tied to fentanyl-related issues and the Section 301 investigation. He urged the US to engage in equal consultations to address trade disputes. Both sides agreed that maintaining a stable economic relationship is in their mutual interest.

The meeting took place against the backdrop of Trump’s 20 percent tariffs on Chinese goods, which remain a key issue in bilateral trade talks. According to reports, Trump has suggested he may consider lowering tariffs on China in exchange for a deal over TikTok, which is coming up against an April 5 deadline to be sold or face a potential US ban.

March 25, 2025 – US Commerce Department adds over 50 Chinese Entities to Entity List

The Bureau of Industry and Security (BIS) under the US Department of Commerce added 80 entities from a range of countries, over 50 of which are from China. According to the press release, the purpose of including these companies to the list is to restrict China from acquiring and developing high-performance and exascale computing capabilities and quantum technologies for military applications, as well as impeding China’s development of hypersonic weapons.

The entities notably include six subsidiaries of the Chinese cloud computing and big data services provider Inspur Group, including Inspur’s subsidiary in Taiwan (Inspur Taiwan). These entities were added “for their contributions to Inspur’s development of supercomputers for military end use, particularly by acquiring or attempting to acquire U.S.-origin items in support of supercomputer projects for the Chinese government and/or military”.

Inspur Group was placed on the Entity List in 2023.

Other entities added to the list include the Beijing Academy of Artificial Intelligence, a non-profit AI research lab; Nettrix Information Industry, a server manufacturer and IT system provider; and Suma Technology.

Companies included on the Entity List will be subject to export restrictions, and US companies will be unable to do business with the entities without a license.

In a regular press briefing on Tuesday, Foreign Ministry Spokesperson Guo Jiakun called the latest action “an abuse of [the US’s] entity list and other export controls” and that they were in violation of international law. He also repeated the line that “China will take necessary steps to firmly safeguard the lawful rights and interests of Chinese companies”, suggesting possible retaliation.

March 23, 2025: Premier Li Qiang meets with US Senator Steve Daines

Chinese Premier Li Qiang met with Republican Senator Steve Daines, along with a group of American business executives in Beijing as a part of the annual China Development Forum.

According to the readout of the meeting, Li urged communication between China and the US, stating that “Both sides should choose dialogue rather than confrontation, and choose win-win cooperation instead of a zero-sum game.”

He also emphasized the importance of trade in bilateral relations, warning that “the more difficulties bilateral relations face, the more important it is to safeguard and develop China-US economic and trade cooperation.”

This was the first meeting between Chinese and US officials since Trump took office in January and comes amid an escalating trade war that has seen the US place 20 percent tariffs on goods coming from China.

During the last Trump administration, Daines played an important role in the negotiations for the Phase One US-China Trade Agreement, particularly in advocating for agricultural interests.

When asked in a regular press conference whether Daines’ trip signaled a possible meeting between Trump and Xi Jinping, Foreign Ministry spokesperson Mao Ning stated that “we […] welcome Americans from all walks of life, including members of the Congress, to visit China.”

March 20, 2025: US Department of State and US Treasury Secretary sanction a Chinese oil terminal and refinery

The US Department of State on Thursday sanctioned the Huaying Huizhou Daya Bay Petrochemical Terminal Storage in Guangdong for allegedly “buying and storing Iranian crude oil from a sanctioned vessel.” Meanwhile, the Department of the Treasury (the Treasury) concurrently sanctioned the Shouguang Luqing Petrochemical Co., Ltd oil refinery in Shandong “for purchasing and refining hundreds of millions of dollars’ worth of Iranian crude oil.”

In addition, the Treasury sanctioned 12 entities and one individual and identified eight vessels as blocked property (property owned by sanctioned entities) for purportedly being part of Iran’s so-called “shadow fleet” of tankers, which ship “millions of barrels of Iranian oil to China”.

These sanctions are designed to end Iran’s oil exports. The US alleges that income derived from Iran’s oil exports is funding Iran’s attacks on US allies and helping to fund US-designated terrorist groups.

In a regular press meeting on Friday, Foreign Ministry Spokesperson Mao Ning called the action an “abuse of illicit unilateral sanctions and long-arm jurisdiction” and called for the US to stop “disrupting the normal business cooperation between China and Iran”. She also cautioned that China will “take all measures necessary to firmly safeguard the lawful rights and interests of our companies”.

March 4, 2025: China counters Trump’s tariffs with duties on US agricultural products

China’s Ministry of Finance (MOF) has announced a series of counter-tariffs on crucial US agricultural goods one day after Trump increased tariffs on Chinese goods to 20 percent.

The tariffs on US goods are as follows:

1. A 15 percent tariff on chicken, wheat, corn, and cotton.
2. A 10 percent tariff on sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products.

The MOF announcement stated that “the unilateral tariff increase by the US side undermines the multilateral trading system, increases the burden on US companies and consumers, and undermines the basis for economic and trade cooperation between China and the US.”

The tariffs will come into effect on March 10.

In a separate announcement, China’s Ministry of Commerce stated that China has sued the US under the WTO’s dispute settlement mechanism for the latest tariff hike, stating that it violates the WTO’s rules and “undermines the basis for economic and trade cooperation between China and the United States”.

The targeting of US agricultural products is calculated. China is one of the world’s largest importers of agricultural products and a major buyer of US soybeans, corn, and sorghum. Agricultural products were a core component of the trade deal struck between China and the Trump administration in 2019, which saw China commit to purchasing around US$200 billion in agricultural goods from the US over a two-year period.

The US’s agricultural producers are also mainly located in the US’s red states, meaning the tariffs will hit Trump’s core voter base the hardest.

March 3, 2025: Trump raises tariffs on Chinese goods to 20%, effective March 4

The Trump administration has officially raised the tariff rate on Chinese imports from 10 to 20 percent through an executive order (EO) signed on Monday. The EO states that the increase to the 10 percent tariff initially implemented on February 4 is necessary as China “has not taken adequate steps to alleviate the illicit drug crisis through cooperative enforcement actions”.

The new tariff rate takes effect on March 4, the same day the postponed 25 percent tariffs on Canada and Mexico come into force.

The Global Times, a sister publication of the state news organization The People’s Daily, reported on Monday that China was considering responding with counter-tariffs on US agricultural goods.

February 27, 2025: Trump threatens an additional 10% tariff on Chinese goods

President Trump announced in a post on his social media platform Truth Social that he will impose an additional 10 percent tariff on Chinese imports starting March 4, the date on which the 25 percent tariffs on goods from Mexico and Canada will come into effect. In the post, Trump alleged that fentanyl coming into the US from Mexico and Canada is made and supplied by China, implying this is the reason for the tariff hike.

Trump already imposed a 10 percent tariff on all Chinese goods at the beginning of February, meaning the effective tariff rate would increase to 20 percent.

He also stated that the reciprocal tariffs on goods from all countries, announced on February 13, are scheduled to go into effect on April 2.

In a regular press conference on February 28, Chinese Foreign Ministry Spokesperson Lin Jian said that the “fentanyl issue is just an excuse the U.S. uses to impose tariffs on, pressure and blackmail China” and that “the fentanyl issue is the U.S.’s own problem”.

Meanwhile, a spokesperson from the Ministry of Commerce stated that “China will take all necessary countermeasures to defend its legitimate rights and interests”.

February 21, 2025 – Trump signs a memorandum restricting Chinese investment in the US on national security grounds

On Friday, Trump signed a National Security Presidential Memorandum (NSPM) directing the Committee on Foreign Investment in the United States (CFIUS) to restrict China-affiliated investors from investing in technology, critical infrastructure, healthcare, agriculture, energy, raw materials, and other strategic sectors in the US.

The memorandum claims that foreign adversaries, including China, “systematically direct and facilitate investment in United States companies and assets to obtain cutting-edge technologies, intellectual property, and leverage in strategic industries”.

The memorandum also calls for establishing new rules to curb US investment in Chinese industries “that advance the PRC’s national Military-Civil Fusion strategy and stop PRC-affiliated persons from buying up critical American businesses and assets”.

In addition to restrictions on investment in strategic industries, the memorandum also calls for restricting the purchase of farmland and real estate near sensitive facilities. According to a White House Fact Sheet, around 2 percent of all US agricultural land is owned by foreign entities and individuals, and China owns more than 350,000 acres of farmland.

In a statement posted to its website, the Chinese Ministry of Commerce called on the US to “stop politicizing and weaponizing economic and trade issues”, and warned that stricter investment rules would undermine Chinese companies’ confidence in the US market and cause US companies to cede ground to key competitors in China.

February 13, 2025 – Trump signs plan to impose reciprocal tariffs on all trade partners

Trump signed a memorandum on Thursday directing key ministers to implement a plan to impose reciprocal tariffs on all trade partners.

The “Fair and Reciprocal Plan” will examine non-reciprocal trade relationships with all trade partners, including tariffs on US products, unfair, discriminatory, or extraterritorial taxes on US businesses, workers, and consumers (including VAT), nontariff barriers or measures, including subsidies and regulatory requirements, and policies and practices that cause exchange rates to deviate from their market value.

Examples where the US’s trade partners do not provide reciprocal tariffs on American goods cited in a Fact Sheet include a 10 percent tariff imposed by the EU on American imported cars, while the US imposes a 2.5 percent tariff on European imported cars. Should the plan be implemented as intended, tariffs on car imports from the EU will rise to 10 percent.

The tariffs that Trump has imposed on products such as steel and aluminum, as well as the 10 percent tariff placed on Chinese goods, would be in addition to the reciprocal tariffs.

The broad scope of the types of duties and trade barriers targeted by the reciprocal action means further tariffs on Chinese goods could be very extensive. The US has in the past accused China of unfairly subsidizing the production of various goods to the detriment of its domestic industries, and China also imposes VAT on most goods and services ranging from six to 13 percent.

In January of this year, the US Trade Representative released the results of an investigation into China’s shipbuilding subsidies, which concluded that China’s “targeting for dominance burdens or restricts U.S. commerce by undercutting business opportunities for and investments in the U.S. maritime, logistics, and shipbuilding sectors”. The report further stated that “responsive action is appropriate”.

It is also likely that the US’s major trading partners, such as the EU, will impose countermeasures on US goods in response to Trump’s actions.

February 10, 2025 – Trump states he has spoken to Xi Jinping

In an interview with Fox News on Monday, Trump stated that he has spoken to Chinese President Xi Jinping “and his people” since the inauguration on January 20, without saying when the talk took place or what was discussed.

Trump added that he “loved talking to him” and that they have “a very good personal relationship”.

The Chinese side has not confirmed when or whether the call took place, and the last confirmed communication between the two leaders was a phone call on January 17.

A White House spokesperson said last week that Trump would speak to Xi Jinping within a few days, but no update has been given on the status of the talks.

February 10, 2025 – Trump announces 25% tariff on steel and aluminum imports

On Monday, President Trump signed a proclamation announcing a 25 percent ad valorem tariff on all steel imports into the US and raising tariffs on aluminum imports from 10 to 25 percent. The tariffs will be applicable to imports from all countries and regions “without exception”, and will take effect on March 12.

According to the proclamation, the 25 percent tariff imposed on steel by Trump in 2018 effectively reduced the US’s reliance on imports and increasedthe  consumption of domestic supply. However, the proclamation asserts that various exemptions and alternative agreements negotiated with multiple countries and entities during the Trump and Biden administrations have led to imported steel comprising a proportion of US consumption comparable to levels prior to the initial tariff imposition. Additionally, the proclamation states that there is a “global excess capacity crisis” and that increasing Chinese steel exports in recent years is “displacing production in other countries and forcing them to export greater volumes of steel articles and derivative steel articles to the United States.”

As a result, the US will terminate all agreements and exemptions made with different trade partners and entities, and the 25 percent tariff will be reinstated for all steel imports.

Chinese direct exports of steel to the US are very small, accounting for just 0.8 percent of China’s total steel exports in 2024. However, Chinese steel exports to countries that are major sources for steel imports for the US, such as Vietnam and Canada, accounted for 25.22 percent of China’s total steel exports in 2024, according to Investor.org.cn. As the tariff is effective worldwide, it will indirectly affect Chinese steel re-exports to the US via these third countries, thereby significantly impacting China’s global steel exports.

February 9, 2025 – Trump announces plan to impose 25% steel and aluminum tariff on all trading partners

Speaking to reporters on Air Force One on Sunday, Trump announced he would impose an additional 25 percent tariff on US steel and aluminum imports. The new tariff, which will reportedly be officially announced and take effect on Monday, will be added to all existing duties.

In September 2024, the Biden administration raised the tariff on imports of Chinese steel and aluminum products to 25 percent.

China’s steel and aluminum exports to the US have fallen in recent years and make up a small percentage of China’s overall exports. 

In addition to the steel and aluminum tariff, Trump said he would announce global reciprocal tariffs on Tuesday or Wednesday, which would go into effect immediately.

February 7, 2025 – Trump pauses executive action ending de minimis exception

The Trump administration on Friday released an amendment to an Executive Order deferring the end to the de minimis exception after its sudden implementation on February 4 caused chaos at US logistics centers and customs warehouses. An estimated four million packages entered the US per day in 2024 under the de minimis exception, which allows packages under US$800 in value to forego customs inspections and duties.

The amendment states that duty-free de minimis treatment will be available on eligible packages until “adequate systems are in place to fully and expediently process and collect tariff revenue”.

On February 4, the US Postal Service also announced a temporary suspension to international packages from the Chinese mainland and Hong Kong but reversed this decision the next day.

February 4, 2024 – US Postal Service suspends all parcels arriving from Mainland China and Hong Kong

In a notice posted to its website on Tuesday, the USPS announced that it will temporarily suspend international packages from the Chinese mainland and Hong Kong “until further notice”, effective the same day. Letters and “flats” (large envelopes, newsletters, and magazines) are unaffected.

On February 1, Trump signed an Executive Order which, among other actions, halted the de minimis exemption allowing parcels below US$800 in value to bypass customs inspections and duties when entering the US. The stated reason for halting the exemption is to prevent the import of fentanyl and chemical precursors, which arrive in the US via these types of small packages.

The halting of packages from China will severely affect online retailers such as Shein, Temu, and Amazon, as well as countless smaller retail businesses, whose business models are substantially based on exploiting this loophole. It will also have an immediate impact on American consumers, as millions of parcels that have already been shipped will be stuck in customs for an indeterminate amount of time. An analyst told Reuters that four million de minimis packages arrived in the US per day in 2024.

February 4, 2024 – China imposes tariffs on US imports, implements export controls on rare earths in retaliation to Trump’s tariff hike

Shortly after the Trump administration’s 10 percent additional tariff on Chinese imports took effect, China’s Customs Tariff Commission announced a series of retaliatory tariffs on goods originating from the United States.

These are:

• A 15 percent tariff on coal and liquefied natural gas, and
• A 10 percent tariff on crude oil, agricultural machinery, large-displacement cars, and pickup trucks.

Additionally, corresponding tariffs will be imposed based on current applicable tariff rates. Existing bonded and tax reduction and exemption policies will remain unchanged, and the additional tariffs will not be reduced or exempted. These tariffs are set to take effect on February 10.

In addition to the tariff increase, China’s Ministry of Commerce and Customs Administration announced export controls on 25 rare earth metal items, citing the need to “safeguard national security and interests and fulfill international obligations such as non-proliferation.”

The items subject to export controls include various derivations of tungsten, tellurium, bismuth, and molybdenum, critical materials for industries such as electronics, aerospace, and renewable energy.

While the announcement did not explicitly link the export controls to US tariffs, China’s role as one of the largest producers of rare earth metals makes these products a significant bargaining chip in the context of a potential trade war. In an executive order signed on his first day in office, Trump called for “Restoring America’s Mineral Dominance,” which included expanding access to land for mining in the US. He has also pursued efforts to expand access to critical minerals overseas, including threatening to annex Greenland and recently demanding Ukraine provide access to rare earths in exchange for military aid.

Separately, the Trump administration imposed 25 percent tariffs on Canada and Mexico but postponed their implementation by 30 days in both cases following negotiations. However, no such deal has been reached between China and the United States. According to White House Press Secretary Karoline Leavitt, Trump is expected to speak with President Xi Jinping “in the next couple of days,” according to Reuters.

February 4, 2024 – China announces an antitrust probe into Google, adds two US companies to the Unreliable Entities List

On Tuesday, China’s State Administration for Market Regulation (SAMR) announced that it has launched an investigation into Google for suspected violations of China’s Anti-Monopoly Law. The statement, published on SAMR’s website, did not provide specific details of the alleged violations. This news was released just one minute after the US’s 10 percent tariffs on Chinese imports took effect.

While Google’s search engine has not operated in China since 2011 and its Gmail service ended in 2014, some Google services and products, such as the Google Chrome browser, are still available in the country.

At the same time as the Google antitrust probe announcement, China’s Ministry of Commerce declared that it is adding two major US companies to its Unreliable Entities List: biotech giant Illumina, Inc. and fashion conglomerate PVH Group, the parent company of Calvin Klein and Tommy Hilfiger.

According to the Ministry, the two companies “violated normal market trading principles, interrupted normal transactions with Chinese companies, adopted discriminatory measures against Chinese companies, and seriously damaged the legitimate rights and interests of Chinese companies.”

Placement on the Unreliable Entities List subjects these companies to a range of potential penalties, including import and export restrictions, investment limitations, restrictions or prohibitions on company personnel entering China, revocation of work, stay, or residence permits for foreign staff, and fines.

Illumina has expanded its presence in China in recent years, establishing its first manufacturing site in Shanghai in 2022. Meanwhile, PVH Group has seen strong growth in the Chinese market, citing a 20 percent year-on-year increase in revenue in RMB terms in its 2023 Year in Review.

February 1, 2025 – Trump signs executive order slapping 10% tariff on Chinese imports

President Trump signed an executive order (EO) imposing an additional 10 percent tariff on Chinese goods entering the country, ostensibly to curb the import of fentanyl and other illicit substances. Canada and Mexico were separately hit with 25 percent additional tariffs under the same rationale. The additional tariffs will be levied “until the [illicit drug] crisis is alleviated”, according to a White House Fact Sheet.

The Fact Sheet also accused China of failing “to take the actions necessary to stem the flow of precursor chemicals to known criminal cartels and shut down money laundering by transnational criminal organizations”.

Under the Biden administration, the US and China increased collaboration to tackle the export of fentanyl and precursor chemicals from China to the US, launching the US-China Counternarcotics Working Group in January 2024. The initiative was a key part of the efforts to resume US-China cooperation on a variety of issues following years of diplomatic gridlock and, at the time, was viewed as an easy win for the Biden administration. In April 2024, then US Treasury Secretary Janet Yellen announced the launch of the Joint Treasury-People’s Bank of China Cooperation and Exchange on Anti-Money Laundering. It is unclear whether these efforts will continue under Trump.

In addition to the tariffs, the EOs also announced a halt to the De Minimis exemption, which exempts parcels valued below US$800 from customs inspections and tariffs. The Trump administration has blamed small packages that fall under this threshold for the illegal import of fentanyl and precursor chemicals.

The suspension of the De Minimis exemption could significantly impact Chinese e-commerce giants like Shein and Temu, which have established vast customer bases in the US. Their business models heavily rely on exploiting this loophole by shipping low-value parcels directly from manufacturers in China to American consumers.

The tariffs will go into effect at 00:01 Eastern Time (13:01 China Standard Time) on Tuesday, February 4.

In response to the tariffs, a Chinese Foreign Ministry spokesperson said that China would “take necessary countermeasures to defend its legitimate rights and interests” and that the move violated WTO rules. China’s Ministry of Commerce also stated that it would file a lawsuit with the WTO and threatened to use countermeasures to “safeguard its own rights and interests”.

January 22, 2025 – Trump threatens 10% tariff on China over Fentanyl from Feb 1

On January 22, 2025, during a White House event, President Donald Trump announced plans to impose a 10 percent tariff on Chinese imports as soon as February 1, citing concerns over fentanyl shipments. He accused China of sending fentanyl to Mexico and Canada, which he claimed was then trafficked into the United States. In response, Chinese Foreign Ministry spokesperson Mao Ning stated during a routine press briefing that China firmly opposes trade wars and tariff measures, emphasizing that “there are no winners in trade wars, and China will resolutely safeguard its national interests.”

January 20, 2025 – Trump’s second term begins with a focus on US-China trade relations

President Donald Trump marked the start of his second term with a broad trade policy directive, prioritizing a methodical review of the United States’ trade relationships, including a sharp focus on China. While no immediate tariffs were announced, the administration signaled its intention to evaluate Beijing’s adherence to the 2020 trade agreement and address trade imbalances.

Key developments include:

• Trade memo announcement: The memo, issued shortly after Trump’s inauguration, directs federal agencies to scrutinize trade deficits and unfair practices by major trading partners, with China being a key focus.
• 2020 trade deal under review: Trump’s directive includes assessing China’s compliance with the 2020 deal, which required Beijing to increase purchases of US goods by US$200 billion annually—a commitment largely unmet due to the pandemic.
• Avoiding immediate tariffs: Contrary to campaign rhetoric promising steep tariffs on Chinese imports, the administration appears to be taking a more strategic approach. Analysts suggest this could calm financial markets in the short term.
• Universal tariff expected: Trade experts believe Trump remains committed to imposing a global tariff as part of his economic agenda. The administration is expected to invoke statutes like Section 232 or Section 301 for future trade actions. Trump’s measured approach to tariffs suggests a possible window for negotiations, but the administration’s broader goals—such as pushing China to fulfill its trade commitments—may lead to renewed tensions. The directive reinforces the administration’s intent to hold China accountable for practices perceived as unfair, maintaining pressure in line with Trump’s first-term trade strategy.

This measured start to Trump’s second term reflects his administration’s continued focus on reshaping US-China trade ties, signaling challenges ahead for the bilateral relationship.

January 20, 2025 – Trump signs executive action to delay the TikTok ban for 75 days

On January 20, 2025, former President Donald Trump signed an executive order to delay the enforcement of a TikTok ban for an additional 75 days.

Under the terms of the executive order, the U.S. Department of Justice will refrain from enforcing the Foreign Adversary Controlled Applications Act, which was passed with broad bipartisan support in Congress and signed into law by former President Joe Biden in April 2024. The Act required TikTok to either sell its U.S. operations to an American or allied buyer or face a ban, effective January 19, 2025.

Prior to his inauguration, Trump had pledged on social media to take executive action to prevent the law from taking effect. Following this announcement, TikTok restored access for existing users after the app had been offline for more than 12 hours from Saturday night to Sunday afternoon.

It remains unclear whether TikTok will be able to continue operating in the U.S. after the 75-day delay. However, the extension provides TikTok’s China-based parent, ByteDance, with additional time to secure a potential buyer for the platform at least.

January 20, 2025 – Trump comments on reclaiming the Panama Canal, references manifest destiny for space exploration

On January 20, 2025, newly inaugurated President Donald Trump stated that the United States would take back control of the Panama Canal. During his inauguration speech, Trump reiterated his accusation that Panama had broken promises made during the 1999 transfer of the canal and had allegedly allowed China to gain influence over its operation. He remarked, “We didn’t give it to China. We gave it to Panama, and we’re taking it back.” Although he did not specify when or how the US would pursue this goal, he previously suggested that military action could be a possibility, a comment that has drawn attention from both supporters and critics.

Trump’s statement on the Panama Canal was part of a wider discussion of his views on US territorial expansion. He invoked the concept of “Manifest Destiny,” historically associated with 19th-century US territorial expansion, and linked it to future goals for space exploration, specifically stating that the US would eventually aim to land astronauts on Mars. Some critics have expressed concerns that such rhetoric might encourage other countries, like Russia and China, to pursue more assertive actions in their respective geopolitical situations. Others have speculated that Trump’s statements may be a strategic move to set a strong negotiating position.

In his speech, Trump also reiterated plans to rename the Gulf of Mexico to the Gulf of America and expressed dissatisfaction with the transfer of the Panama Canal, calling it a “foolish gift.” His administration’s criticisms are based on claims of unfair treatment, particularly regarding shipping costs, though Panama has denied any unfair practices and emphasized that all vessels are treated equally, including those from China. While China does not control the canal itself, a subsidiary of Hong Kong-based CK Hutchison Holdings manages two ports near the canal’s Caribbean and Pacific entrances, which has been a point of contention in US-China relations.

The Panama Canal is a crucial waterway for both global trade and the US, playing a key role in the transportation of goods from Asia and in the export of US energy resources. Following Trump’s remarks, Panama’s maritime authority announced an audit of the Panama Ports Company, which manages the ports near the canal.

January 20, 2025 – Elon Musk and China’s Vice President meet ahead of Trump’s second term

Tesla CEO Elon Musk’s meeting with China’s Vice President Han Zheng in Washington, D.C., ahead of Donald Trump’s second-term inauguration, has sparked fresh speculation about Musk’s role in shaping US-China relations. According to Chinese state media, Han invited US firms, including Tesla, to deepen investments in China and strengthen economic ties. Musk reportedly reaffirmed Tesla’s commitment to expanding cooperation with China, a vital market that accounts for nearly a quarter of the company’s revenue and hosts its most productive manufacturing hub in Shanghai.

The timing of the meeting, alongside broader discussions with US business leaders, suggests China’s intent to stabilize relations with the US while maintaining economic partnerships. Musk, whose business interests are deeply tied to China, has been described as a potential intermediary between the Trump administration and the Chinese government. This comes amid unresolved tensions over trade and technology, including speculation around Musk’s involvement in a possible TikTok joint venture.

As Trump prepares to recalibrate trade policies, the meeting underscores the critical intersection of business diplomacy and geopolitics in US-China relations.

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