Trump and Xi Dig In as Tariff Fight Grows. Who will Blink First?/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The U.S. and China are entrenched in a rapidly escalating tariff war with no signs of backing down. Trump’s sharp increase in tariffs on Chinese goods to 145% triggered swift retaliation, deepening economic and geopolitical tensions. Experts warn diplomacy is slipping further out of reach.
U.S.-China Trade Tensions Surge: Quick Looks
- Trump raises China tariffs to 145%, citing Beijing’s lack of respect for markets.
- China retaliates, taxing U.S. goods at 84%, with tit-for-tat escalations continuing.
- White House insists this is strategy, not reaction—China “shown as bad actors.”
- Business groups warn tariffs will hurt global and U.S. economies.
- U.S.-China Business Council calls for immediate talks to avoid deeper economic fallout.
- Experts say Xi unlikely to initiate negotiations, heightening risk of prolonged standoff.
- China deploying its full trade retaliation toolkit, from tariffs to blacklists.
- Chinese state media remains defiant, insisting China has “resilience” and “won’t blink.”
- Trump removed tariffs on most nations, isolating China in trade confrontation.
- Economic damage already visible, with volatility in markets and supply chain stress.
Trump and Xi Dig In as Tariff Fight Grows. Who will Blink First?
Deep Look
The U.S.-China trade war entered its most dangerous phase yet this week as President Donald Trump ratcheted up tariffs on Chinese imports to 145%, setting the stage for a direct and escalating economic showdown between the world’s two largest economies.
While Trump backed off from broader “reciprocal” tariffs on dozens of countries, his targeted escalation toward Beijing signals a calculated shift: narrowing the trade conflict into a singular power struggle between Washington and China. And neither side appears willing to blink.
“When you punch the United States of America, President Trump is going to punch back harder,” said Karoline Leavitt, White House press secretary, echoing the president’s combative posture.
The latest tariff tit-for-tat unfolded rapidly. After China responded to Trump’s initial 34% reciprocal tax with an identical rate, Trump hiked tariffs by another 50 percentage points. China countered again, taxing U.S. goods at 84%. Hours later, Trump ordered Chinese imports to be taxed at 125%, which the White House later clarified as 145% once a preexisting 20% fentanyl-related tariff was included.
“China will realize that the days of ripping off the USA are over,” Trump posted on Truth Social.
Treasury Secretary Scott Bessent defended the move as part of a long-planned strategy, describing China as “bad actors” unwilling to negotiate in good faith.
While global stock markets rebounded slightly amid hopes of negotiation, business leaders and economists warned that the hardline approach could have serious, long-term consequences for both economies. The U.S.-China Business Council issued a sharp statement urging both sides to resume talks.
“These sweeping tit-for-tat tariffs are in no one’s interest,” the council wrote. “They will significantly harm the global, U.S., and Chinese economies—as well as American businesses, farmers, and consumers.”
Yet diplomacy appears distant. Trump has left little room for compromise, demanding a retreat from Beijing that analysts say President Xi Jinping would never accept.
“Xi will not be forced into a call,” said Sun Yun, director of the China program at the Stimson Center, a Washington think tank. She noted that China has only reached out unilaterally once in recent history—after the 9/11 attacks.
Craig Singleton, senior China fellow at the Foundation for Defense of Democracies, added, “Each side believes time is on its side, which raises the risk that neither moves to de-escalate until real damage is done.”
China’s Strategic Retaliation
China has not backed down. Instead, Beijing has responded swiftly and strategically. Editorials in state-run People’s Daily and Xinhua News Agency projected resolve, with the former claiming, “The sky will not fall.”
“Facing the impact of U.S. tariff bullying, we possess strong resilience,” the editorial said, pointing to reduced reliance on U.S. markets and expanded domestic demand initiatives.
- Import curbs and export controls
- Blacklisting U.S. companies
- Regulatory crackdowns
- Restrictions on access to critical minerals
“Beijing is now throwing the entire toolkit against the U.S.,” said Melanie Hart of the Atlantic Council. “They’ve been building this bunker. And if I’m Xi Jinping, I’m feeling a lot more comfortable than Donald Trump today.”
But despite its aggressive tone, China hasn’t closed the door to negotiations. People’s Daily emphasized that Beijing remains open to talks, even under “volatility and extreme pressure.”
“There are no winners in a trade war,” Xinhua wrote. “But China is not afraid of a trade war.”
What Comes Next?
As the standoff intensifies, there is widespread concern that the economic fallout could deepen, dragging down global growth, fracturing supply chains, and spooking investors.
Trump’s strategy to isolate China by lifting tariffs on other nations—while politically calculated—raises the stakes, converting a broad trade war into a personalized geopolitical duel.
Meanwhile, businesses and consumers are already feeling the strain. U.S. exporters face plummeting demand in China, and Chinese goods in American markets could soon carry massive price hikes, especially in tech, consumer electronics, and industrial sectors.
Analysts warn that the longer this continues, the more difficult it will be to retreat. With both nations seeing domestic political value in appearing tough, de-escalation becomes increasingly elusive.
As markets remain volatile, and no end in sight, one question looms over both capitals: What happens if neither side blinks?
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