Trump Losing the Trade War with China
The US economy has become increasingly vulnerable and dependent on China. A recent one-year truce in the trade war between the two countries, agreed upon by President Donald Trump and China's President Xi Jinping, highlights this reality.
Key Meeting and Outcomes
On October 30, 2025, Trump met with Xi Jinping in Busan, South Korea. They agreed to pause hostilities in the trade war for one year. The US agreed to lift most punitive tariffs imposed on China since April 2025, effectively reverting conditions to those before Trump’s second term began in January.
China’s Strategic Victory
“Unlike nearly 10 years ago, when Trump’s first trade offensive caught Beijing by surprise, this time a better prepared and economically more powerful China has been able to fight its once far mightier opponent to a standstill.” – Financial Times
This statement reflects China’s strengthened position. Despite Trump’s aggressive tariff increases, including a 145% tariff on Chinese goods, Beijing reciprocated with matching duties, forcing the US to retreat.
Implications of Tariff Escalation
- Trump’s strategy to impose high tariffs globally began in April 2025.
- China is the only country that successfully resisted unequal trade demands from the US.
- The escalation to extreme tariffs was intended to force China’s compliance but instead resulted in a stalemate.
Summary
Trump’s trade war with China has not achieved its goals, as China’s preparedness and resilience have led to a de facto victory in this economic conflict.
“This terrified Washington, and Trump backed down.”
Author’s summary: The trade conflict reveals the US’s growing economic reliance on China and shows how China, now economically stronger, has effectively neutralized Trump's aggressive tariff tactics.