Winning: China Is Already Negotiating With Trump After New Power Play

Former President Donald Trump shifts gears on China trade policy, emphasizing negotiation over tariffs.

At a Glance

  • Trump expresses preference for negotiation with China despite previous tariff threats
  • Chinese exports to the US rose 4% from November 2023 to November 2024
  • US trade deficit with China has widened amid tariff threats
  • China urges dialogue and consultation to resolve trade differences
  • Experts warn of potential negative impacts on global trade and US consumers

Trump’s Evolving Stance on China Trade

Former President Donald Trump, known for his tough rhetoric on China during his previous term, has signaled a potential shift in his approach to U.S.-China trade relations. Despite considering a 10% tariff on Chinese imports effective February 1, Trump recently expressed a preference for negotiation over imposing tariffs.

In a Fox News interview, Trump emphasized the leverage provided by potential tariffs but stressed his commitment to negotiating with Chinese President Xi Jinping on issues such as trade and Taiwan. This marks a departure from his earlier campaign promises, which strongly advocated for substantial tariffs on Chinese goods to address trade disparities.

In response to Trump’s statements, China has consistently emphasized the need for communication and compromise. The Chinese Foreign Ministry highlighted the shared economic gains derived from resolving trade issues through constructive dialogue and cooperation.

Despite U.S. tariff threats, Chinese exports, including those to the U.S., have increased. From November 2023 to November 2024, Chinese exports to the U.S. rose by 4%, while imports from the U.S. decreased by 11.2%. This has led to a widening U.S. trade deficit with China, contrary to the intended effects of tariff threats.

Experts warn that high tariffs could increase costs for American consumers and potentially raise inflation. Trump knows this, of course, which is why he’d rather not do it – but the threat alone appears to be working. Experts know it, too.

“Trump sees tariffs as important, not just from an economic point of view, but also from a negotiating point of view,” Manoj Kewalramani, Chairperson of the Indo-Pacific Research Programme, said.

While Trump describes tariffs as significant leverage over China, referring to them as a “pot of gold,” the economic realities paint a complex picture. China’s total exports reached record highs in 2024, with a trade surplus of $992 billion, indicating resilience in the face of U.S. trade pressures.

As the U.S.-China trade relationship continues to evolve, both nations face challenges and opportunities. But China knows it needs to please Trump to maintain access to the U.S. economy.