US-China Tariff War Forces Nations to Pick Trade Sides/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ As President Donald Trump’s aggressive tariffs escalate economic tensions with China, countries around the world are being forced to choose sides. Allies are hedging by strengthening ties with Beijing, complicating U.S. diplomatic efforts. Global trade and geopolitical alliances are entering a new, volatile era.
Global Trade Shifts as U.S.-China Conflict Deepens: Quick Looks
- Trump’s tariffs reach 145% on Chinese imports, rattling markets.
- Countries like Switzerland balance diplomacy between Washington and Beijing.
- China strengthens ties with Vietnam, Malaysia, Cambodia, and Japan.
- Global trade partners struggle to maintain ties with both powers.
- Beijing warns against deals with U.S. at China’s expense.
- Consumer prices and U.S. supply chains already feeling tariff impacts.
- China poised for decoupling, citing historical resilience.
- Global confidence in U.S. leadership wanes amid trade war.
US-China Tariff War Forces Nations to Pick Trade Sides
Deep Look
Trump’s Trade War Forces Global Realignment as Nations Hedge Between U.S. and China
WASHINGTON — The deepening U.S.-China trade conflict under President Donald Trump is not just rattling markets — it’s forcing the world to pick sides.
Last week, a telling scene unfolded: the Swiss president visited Washington to plead against Trump’s threatened 31% tariffs on Swiss goods, while simultaneously, Switzerland’s foreign minister traveled to Beijing to deepen economic ties with China.
This diplomatic dance reflects a broader global reality: nations, squeezed by Trump’s escalating tariffs and economic nationalism, are increasingly hedging their bets between Washington and Beijing. In doing so, they risk upending decades of American-led international order and granting China new leverage.
“America and China are now locked in a fierce contest for global supremacy,” Singaporean Prime Minister Lawrence Wong warned in a recent speech.
Tariffs Spark Global Urgency
Trump’s aggressive tariffs have triggered urgent maneuvering among global economies. After markets melted down, the White House paused some tariffs on allies for 90 days — but Chinese imports are now subject to punishing rates as high as 145%.
The fallout is already visible. Shipping containers bound for the U.S. via the Port of Los Angeles have plunged 36% in two weeks, according to Port Optimizer. American businesses warn of higher prices and potential shortages, while Beijing vows to “fight to the end.”
Trump insists that China wants to make a deal but says the U.S. has gone “cold turkey” on Chinese trade, refusing to budge without major concessions.
China Strengthens Regional and Global Ties
While Washington flexes its tariffs, Beijing is quietly building alliances. Chinese President Xi Jinping’s recent visits to Vietnam, Malaysia, and Cambodia resulted in promises for tighter industrial cooperation — even among nations hit by steep U.S. tariffs.
Vietnam faces a 46% U.S. tariff, Malaysia 24%, and Cambodia 49%. Yet China continues to expand trade ties with all three, portraying itself as a more stable and reliable economic partner.
China has also reached out to Japan, despite historic animosities, urging coordinated economic responses to U.S. policies. Meanwhile, Beijing is warning countries not to sign trade deals with the U.S. at China’s expense, promising “resolute and reciprocal” countermeasures.
Tough Choices for Global Partners
Caught between two giants, many countries face a grim reality: they need economic relationships with both.
“They cannot choose one or the other, because they need both,” said Matthew Goodman of the Council on Foreign Relations.
China remains the world’s top exporter and largest trading partner for the EU, Japan, South Korea, and ASEAN. Meanwhile, the U.S. is the world’s largest importer and a crucial market for countless economies.
The stakes are enormous. U.S.-ASEAN trade reached $477 billion in 2024 — but China’s trade with ASEAN countries is even larger.
In Europe, China is signaling it may lift sanctions to revive a stalled trade deal. Beijing is urging European leaders to join forces in defending multilateralism against rising U.S. protectionism.
Eroding Global Confidence in the U.S.
Trump’s combative trade strategy is having diplomatic costs. In a recent Ipsos poll, more people worldwide now view China as a more positive force than the U.S. — the first time the U.S. has trailed China in such surveys.
“People lost the confidence, or even trust, for the United States, particularly for Donald Trump,” said Li Cheng, political science professor at the University of Hong Kong.
Analysts like Hal Brands at the American Enterprise Institute believe China is already capitalizing, using Trump’s tariffs to lure disillusioned U.S. allies into its orbit.
China’s “Prepared for the Worst” Strategy
China is also signaling it is ready for a full economic decoupling if necessary.
“China is prepared for the worst, and it is no longer living in the fantasy of globalization,” said Wang Yiwei of Beijing’s Center for China and Globalization.
Victor Gao, another senior figure at the center, added bluntly:
“What will be the end? It’s a complete halt — no more U.S. exports to China, no more China exports to the United States.”
China, Gao emphasized, has survived centuries of invasions, upheavals, and foreign challenges. “Whatever invaders, robbers, and barbarians,” he said, “at the end, they all leave. They all disappear.”
The Future of Global Trade Uncertain
As Trump’s tariffs reshape global commerce, the world faces a difficult recalibration. Countries are seeking ways to balance economic security with political allegiance. Meanwhile, Beijing, positioning itself as a stable alternative, steadily builds influence.
With tensions still rising, the ultimate outcome of this economic power struggle remains uncertain — but the global landscape is already being redrawn.
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