One month into his second term, US President Donald Trump has suggested that a new trade deal with China is “possible,” despite escalating economic hostilities between the world’s two largest economies. Speaking aboard Air Force One on Wednesday, Trump referenced the 2020 trade agreement between the two nations and hinted at the potential for fresh negotiations.
However, the renewed trade dispute has already intensified, with Trump imposing sweeping tariffs on multiple trading partners, including China, Canada, Mexico, and the European Union, as part of his broader strategy to reduce the US trade deficit. At the start of February, his administration levied an additional 10% tariff on all Chinese imports, signalling a return to the hardline trade policies that defined his first term.
In response, China’s foreign ministry urged Washington to handle trade tensions with “mutual respect,” reiterating Beijing’s long-standing position that tariff wars harm both sides and disrupt global economic stability. Ministry spokesman Guo Jiakun emphasised that no one benefits from trade conflicts, warning against further economic confrontation. Separately, China’s commerce ministry denounced the US for using tariffs as a tool of coercion, urging Washington to refrain from leveraging economic pressure in diplomatic disputes.
The latest developments mark a continuation of Trump’s combative trade stance toward China, a policy that first gained traction during his initial presidency. The 2020 trade deal, often referred to as “Phase One,” required Beijing to increase its purchases of American goods, particularly agricultural products, in exchange for tariff relief. However, tensions persisted as the US accused China of failing to meet its commitments, while Beijing criticised Washington’s unpredictable trade policies.
Trump’s re-election has reignited these frictions, with his administration doubling down on protectionist measures that could destabilise global markets. As China and the US brace for another round of economic confrontation, the question remains whether Trump’s latest remarks signal genuine interest in a trade deal or are merely a negotiation tactic in a broader geopolitical rivalry.
