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With tariffs stalled, Trump's China policy drifts

Tariffs reached about 145% before Beijing retaliated, and officials have since softened expectations for a broader overhaul in commercial relations.

  • Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer have shifted emphasis to a new "managed trade" policy, as the United States goods trade deficit with China decreased 32 per cent to $202 billion in 2025.
  • Trump initially hiked tariffs to around 145 per cent, claiming China was "killing" the United States, but Beijing forced a detente after threatening to restrict rare earth mineral supplies.
  • Policy inconsistencies include approving Nvidia H200 chip sales while the Justice Department flagged smuggling threats 30 minutes earlier, as the United States lost 91,000 manufacturing jobs between February and December of 2025.
  • Beyond trade, Trump in December approved $11 billion in weapons sales to Taiwan, while military operations in Iran and Venezuela weakened two countries serving as significant oil suppliers for China.
  • As Trump prepares for his planned May 14 to 15 visit to China to meet Jinping, critics argue his improvisational dealmaking style has undermined the United States in its competition with Beijing.
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Reuters broke the news in United Kingdom on Tuesday, April 21, 2026.
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