Donald Trump is due to meet Xi Jinping in May during his first visit to China in eight years, a closely watched trip that follows a year of sweeping and at times erratic global tariffs imposed by Washington.
The confrontation between the world’s two largest economies has evolved from tit-for-tat tariffs to managing tensions through multiple rounds of trade talks, phone calls and a leaders’ meeting last year.
Developments This Year
March – The United States launches new Section 301 probes into Chinese industries, with China responding with reciprocal investigations. Plans for a summit are delayed to mid-May as the Iran war continues.
US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer meet Chinese Vice Premier He Lifeng and trade negotiator Li Chenggang in Paris for a sixth round of talks described by both sides as “constructive”.
February – The US Supreme Court rejects Trump’s global tariff regime, though Trump signals he will continue using tariffs.
January – China ends 2025 with a record trade surplus, supported by redirected trade flows to Southeast Asia, Africa and Latin America amid declining exports to the US.
Key Developments in 2025
October – China expands export controls on critical minerals, including rare earth elements, and increases scrutiny on semiconductor users.
The US imposes an additional 100% duty on Chinese imports and introduces export controls on critical software. Both sides also target each other’s shipping industries.
Trump and Xi meet in Busan, agreeing to a new trade truce. Washington commits to trimming tariffs, while Beijing agrees to target illicit fentanyl trade, resume US soybean purchases and pause rare earth export curbs.
September – The two sides discuss the divestiture of TikTok, alongside broader trade issues including chemicals and aircraft components.
June–August – Trump says the trade truce is back on track after some Chinese rare earth magnet producers receive export licences.
The US begins issuing licences to Nvidia to export advanced artificial intelligence chips to China, while Trump urges Beijing to increase US soybean purchases. The tariff truce is extended by 90 days.
May – In Geneva, both sides agree to a 90-day truce reducing tariffs. Weeks later, Trump accuses China of violating the agreement, while Beijing says the US introduced “discriminatory restrictive” measures.
April – After returning to office with a 10% tariff on Chinese goods, Trump announces sweeping “Liberation Day” tariffs on all imports.
China retaliates, and both countries escalate levies to over 100%, while Beijing also restricts some rare earth exports.
(with inputs from Reuters)
