U.S. President Donald Trump has hinted that the U.S. could reduce its steep tariffs on Chinese goods, a policy that has long defined his administration’s trade war with Beijing. While Trump publicly insists he’s in control, experts suggest the opposite: his tone reveals growing panic and concern over the economic fallout from the prolonged standoff.

🔹 "They won’t be as high as 145%, they’ll drop significantly," Trump said Tuesday in the Oval Office, opening the door to a potential policy shift.

💼 Negotiations? Still Not Restarted

Despite Trump’s talk of progress, behind the scenes no substantial movement has been made. China is waiting—President Xi Jlnping has even refused Trump’s phone calls—while strengthening its trade ties with other global partners.

Economist Chen Zhiwu summarized the situation bluntly:

"The more Trump insists, the clearer it becomes how nervous the U.S. really is."

📉 Tariff War Threatens Global Trade

Trade between the U.S. and China exceeded $688 billion in 2024, but imposed tariffs as high as 145% are stifling bilateral relations. While Trump hopes for "kindness" from Beijing, China feels no urgency. Analysts say the Chinese government holds the stronger hand—including massive U.S. Treasury holdings that could become economic leverage.

⚖️ U.S. Feels the Heat, China Waits

According to analyst Alicia Garcia-Herrero, Trump realizes the economic pain is mounting—rising prices, voter frustration, and fears of recession may force him to ease his demands.

Professor Chen adds:

"China is waiting. The more Trump shows his anxiety, the more it signals to Beijing there’s no need to rush."

🌍 Global Ripple Effect

The International Monetary Fund has revised down its growth forecasts, citing the ongoing U.S.-China standoff. Economists warn that this tug-of-war between two superpowers could drag down global growth.

"Soaring living costs, economic disarray, and growing public discontent will eventually force Trump to shift course," said economist Xu Jianzheng.

💣 And What About China?

Some strategists believe China has already begun moving funds out of U.S. Treasuries and into other currencies. If true, Beijing may be weaponizing its Treasury holdings—a quiet but strategic move that could weaken America's economic standing.

#chinavsusa , #TRUMP , #USPolitics , #china , #TradingCommunity


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