KEY POINTS
- White House says Trump is open to trade deal with China
- Trump says China needs to make a deal with the US
- The US has imposed 145% tariffs on Chinese goods
- China retaliated with 125% tariffs on US imports
- Beijing tells Trump to stop threatening and blackmailing
- China says does not want a fight, but it is not afraid of the trade war
- US allies and trade partners are adjusting their strategies
WASHINGTON: United States President Donald Trump is open to striking a trade deal with China but believes Beijing must take the first step, the White House said on Tuesday, amid the escalating trade war between the world’s two largest economies.
Speaking at a press briefing, White House Press Secretary Karoline Leavitt quoted Trump as saying, “The ball is in China’s court. China needs to make a deal with us. We don’t have to make a deal with them.”
The remarks, she said, came directly from Trump during an Oval Office meeting.
Leavitt added that China “wants what we have – the American consumer – or to put it another way, they need our money,” reaffirming Trump’s position that Washington holds the upper hand in the trade war.
Trump has raised US tariffs on Chinese goods to as high as 145 percent, while pausing planned levies on goods from other countries. In response, China increased its own tariffs on US imports to 125 percent, escalating the confrontation.
Responding to the US comment on Wednesday, Chinese Foreign Ministry spokesperson Lin Jian said Washington should “stop exerting extreme pressure, stop threatening and blackmailing, and talk to China on the basis of equality, respect and mutual benefit.”
“China does not want to fight, but it is not afraid to fight,” Lin said at a regular press conference, reiterating that “there is no winner in a tariff war or a trade war.”
“This tariff war was initiated by the US side… China does not want a fight, but it is not afraid of one either,” the spokesperson said.
Trump has described Chinese President Xi Jinping in admiring terms, but neither man has backed down in an escalating trade war between their two countries.
“The president, again, has made it quite clear that he’s open to a deal with China. But China needs to make a deal with the United States of America,” Leavitt said.
China’s Ministry of Commerce later said the United States had “weaponised tariffs to a completely irrational level,” with cumulative duties on certain Chinese products reaching 245 percent.
Beijing dismissed what it termed Washington’s “meaningless tariff numbers game.”
The trade war, which intensified following Trump’s return to the White House, has seen heavy tariffs placed on Chinese goods. Trump initially imposed a 20 percent tariff, later adding a 125 percent levy.
While tech products such as smartphones and laptops have been temporarily exempted, the broader tariffs remain in force.
On Tuesday, Trump also ordered a national security review of critical mineral imports, potentially paving the way for new duties on rare earths and related products, including smartphones.
Chip stocks across Asia slumped in response, after US chipmaker Nvidia projected a $5.5 billion loss due to tightened export licensing requirements for its top chip in China.
The trade war’s economic ripple effects are already being felt. China reported a stronger-than-expected 5.4 percent GDP growth in the first quarter, partly attributed to exporters rushing shipments ahead of the new tariffs.
Analysts, however, warn that the real impact of the escalations will surface in the second quarter, particularly in reduced investment and declining exports.
Meanwhile, US allies and trade partners are adjusting their strategies. Japan’s trade envoy Ryosei Akazawa, ahead of talks in Washington, expressed hope for a “win-win” outcome.
South Korea’s Finance Minister Choi Sang-mok said efforts were underway to delay reciprocal tariffs and minimise uncertainty for Korean firms.
In a further sign of deterioration in trade ties, Trump on Tuesday accused China of reneging on a major deal with aircraft manufacturer Boeing.
In a post on Truth Social, Trump said Beijing had decided not to take possession of fully committed aircraft. Boeing shares dropped over two percent following the report.
As a retaliatory measure, Hongkong Post announced it would suspend the acceptance of postal items containing goods destined for the US, citing America’s “unreasonable” and “abusive” imposition of tariffs.
In a more conciliatory note, Chinese President Xi Jinping, in an op-ed published in Vietnam’s Nhan Dan newspaper on Monday, reiterated that “trade wars yield no winners” and that protectionism offers no solutions.
Xi called for support of the multilateral trading system and the maintenance of stable global supply chains.
