Trump Is Losing the Trade War with China He Initiated
The US economy has become more vulnerable and reliant on China. This was highlighted by the one-year trade war truce between President Donald Trump and China’s President Xi Jinping. The truce, agreed during their meeting in Busan, South Korea on October 30, 2025, eased tensions but clearly showed China's advantage.
Details of the Agreement
The United States agreed to lift most punitive tariffs imposed on China since April 2025, effectively restoring the situation to January 2025, when Trump began his second term. While this does not end the trade war, it marks a significant step in China’s favor.
China's Strategic Advantage
"Unlike nearly 10 years ago, when Trump’s first trade offensive caught Beijing by surprise, this time a better prepared and economically more powerful China has been able to fight its once far mightier opponent to a standstill." – Financial Times
- Starting in April 2025, Trump threatened extremely high tariffs worldwide.
- China was the only country able to defend effectively against US measures.
- When Trump increased tariffs on China to 145%, expecting Beijing to surrender, China responded with equivalent reciprocal duties.
- This response caused Washington to back down from further escalation.
Conclusion
China's resilience and strategic countermeasures have forced the US to retreat, signaling a clear disadvantage for Trump in the ongoing trade conflict.
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