Reuters World News Trump’s tariff war with China
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Apr 18, 2025 Antonis Slodkovsky, Reuters' chief politics correspondent in Beijing, and Don Durfee, the U.S. foreign policy editor in Washington, delve into the high-stakes tariff war between the U.S. and China. They explore China's wartime posture in response to the tariffs and the historical pride influencing its resistance. The discussion covers the economic pressures facing both nations, including potential recessions and high unemployment. They also examine the fragile U.S.-China relationship and the implications of these tensions for international trade and regional stability.
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U.S. Views China as Top Rival
- China is now viewed as the main U.S. rival economically and strategically by both political parties in the U.S.
- This view drives the Trump administration's heightened tariff policies targeting China to reverse manufacturing decline and address international trade concerns.
China's Wartime Footing Response
- China has adopted a wartime footing internally, with bureaucrats ordered to be always available and cancel holidays.
- Their trade war response is driven more by pride and politics than calculated strategic deliberation.
Economic Pressure on Leaders
- Both Xi Jinping and Trump face political pressure if the trade war harms their economies.
- The risk of U.S. recession grows, causing some Republicans to question tariff strategies, highlighting Trump's political risk tolerance.