May 30, 2025 — Washington, D.C. and Beijing
US-China trade relations remain in a state of flux as a fragile tariff truce, legal battles, and technological rivalries shape the landscape, according to recent developments.
Earlier this month, negotiators from both nations met in Geneva, achieving a temporary reduction in trade barriers. The United States lowered tariffs on Chinese goods from 145% to 30%, while China cut its levies from 125% to 10%. However, the stability of this agreement was called into question today when U.S. President Donald Trump posted on Truth Social, accusing China of violating the deal and hinting at potential tariff reinstatement.
Adding complexity, the U.S. Court of International Trade ruled late Wednesday, May 28, that the president lacked authority under emergency laws to impose broad global tariffs, halting many of the flat-rate “reciprocal” duties and specific China-focused tariffs. An appeals court, however, permitted certain measures to stand, including tariffs on steel, aluminum, and select Chinese goods under Section 232 of the Trade Expansion Act of 1962, leaving the policy framework uncertain.
Trade discussions appear stalled, with U.S. Treasury Secretary Scott Bessent stating in a May 29 Fox News interview that progress has slowed, suggesting a direct call between President Trump and Chinese President Xi Jinping may be necessary. This follows a May 22 call between senior officials, which had raised hopes for continued dialogue.
Tensions flared further in the technology sector. On May 13, the U.S. Commerce Department warned against the use of Chinese chips, notably Huawei’s Ascend AI chips, citing export control violations. China’s Foreign Ministry responded, labeling the move “unilateral bullying” that undermines the Geneva consensus and pledging to safeguard its interests, potentially through tighter rare earth export restrictions.
China continues to advance its “Made in China 2025” initiative, aiming for self-reliance in advanced technologies like semiconductors, in response to U.S. efforts to reshore production of chips, medicine, and steel. Meanwhile, the U.S. is pursuing a “strategic decoupling,” suspending sales of critical technologies, such as jet engines, and restricting Chinese student visas to limit commercial ties.
Economically, Chinese exports surged 8.1% in April, bolstered by demand from Southeast Asia and Europe, despite uncertainty impacting orders from U.S. importers. Industrial profits in China showed modest growth, though analysts caution that future risks loom.
China’s Foreign Ministry reiterated that “trade wars have no winners,” urging multilateral cooperation and World Trade Organization reform, as stated on May 21, to stabilize global trade.
As both nations navigate these challenges, communication channels from Geneva remain open, but unresolved issues in technology, economic security, and trade policy signal a bumpy road ahead.
Sources: U.S. Commerce Department, China Foreign Ministry, U.S. Court of International Trade, Fox News, Truth Social, WTO statements