Trump's trade war with China in focus ahead of May summit
Why it matters: The May summit will determine if the US and China can de-escalate trade tensions and avoid further economic penalties.
- US President Donald Trump will meet Chinese President Xi Jinping in May, his first visit to China in eight years, following a year of global tariffs.
- The US launched new Section 301 unfair-trade probes into Chinese industries in March, prompting China to respond with reciprocal investigations.
- The US Supreme Court rejected Mr. Trump’s global tariff regime in February, though Mr. Trump indicated he would still use tariffs.
- China ended 2025 with a record trade surplus, likely due to redirecting trade to Southeast Asia, Africa, and Latin America as exports to the US declined.
- China expanded export controls on rare earth elements and increased scrutiny on semiconductor users in October 2025, while the US imposed 100 percent duties on Chinese imports and export controls on critical software.
- Mr. Trump and Mr. Xi agreed to a new trade truce in Busan, South Korea, in October 2025, with Washington trimming tariffs and Beijing targeting fentanyl, resuming soybean purchases, and pausing rare earth export curbs.
- The US pushed for discussions on TikTok divestiture and trade of chemicals, aircraft engines, and parts with China in September 2025.
- Mr. Trump extended a tariff truce for another 90 days in June-August 2025, with Nvidia receiving licenses to export AI chips to China and Mr. Trump urging China to quadruple US soybean purchases.
- Mr. Trump claimed China violated an agreement to mutually roll back tariffs and ease critical mineral export curbs in May 2025, while China accused the US of introducing multiple “discriminatory restrictive” measures.
President Trump is set to meet Chinese President Xi Jinping in May, marking his first visit to China in eight years amidst an ongoing trade war characterized by tit-for-tat tariffs and complex negotiations. This summit follows a period of escalating tensions, including new unfair-trade probes by the US and reciprocal investigations by China, despite previous truces and 'constructive' talks.
