section_path: Trade conflicts by country/Asia/China
section_name: China
paragraph_text: China
  
  During Trump's first term, the US and China traded multiple rounds of escalating tariff and non-tariff trade barriers beginning in January 2018. In January 2020, the two countries signed a "phase one" trade deal, under which China committed to purchasing $200 billion of U.S. goods and services over the next two years. China failed to meet this target, ultimately importing even less than it had before the trade war. President Joe Biden largely maintained and expanded Trump's tariffs during his administration, and Trump pledged to impose higher tariffs in his second term.
  
  In February 2025, Trump declared a national emergency over Chinese drug-trafficking which he used to justify a 10% tariff on all Chinese imports. In March, he increased the tariff to 20%.
  
  China retaliated in February with tariffs of 15% on coals and liquefied natural gas and 10% on oil and agricultural machines and in March with 10-15% tariffs on select US agricultural products. Although these measures were modest in comparison to the US tariffs, China also retaliated with a variety of non-tariff trade barriers. Politico reported that from the start of 2025 China implemented "an array of bureaucratic blocks and tricky third-party sales deals" halt or curtail the direct imports of major US commodities including beef, poultry, and liquefied natural gas. Retaliatory measures included blacklisting American companies, adding export controls to metals like tungsten, and revoking export licenses for US firms. China decreased imports of American oil by 90%, turning to Canadian oil instead. On March 30, 2025, China, South Korea, and Japan's trade ministers met for the first time in five years to discuss goals for a trilateral free trade agreement and enhanced supply-chain cooperation in response to Trump tariffs.
  
  On April 2, the US added a 34% "reciprocal tariff" on most Chinese imports. China matched with a tariff of 34% on American goods, effective April 10, 2025, and suspended negotiations regarding the sale of TikTok. China also began requiring special licenses to export six heavy rare-earths, 100% of which were refined in China, and rare-earth magnets, 90% of which are produced in China. The rare earths, difficult to substitute, are critical to a range of high-tech goods, including batteries, weapons, and medical devices. China was slow to develop the export licenses and halted all exports in the meantime.
  
  Trump raised the tariffs by an additional 50%, bringing the baseline tariff on Chinese imports to 104%. China added an additional 50% as well, bringing their baseline tariff on American goods to 84%. The US then raised to 145%, and on April 11, China raised to 125%. The Chinese Finance Ministry said China would ignore any further US tariff increases, stating, "Even if the U.S. continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of world economy."
  
  On April 21, CEOs of major US retailers warned Trump that the escalating trade war would lead to visible price increases and product shortages within two weeks. Trump began to soften his tone. On April 22, Trump stated that tariffs on Chinese imports would "come down substantially, but it won't be zero". Two days later, Chinese Foreign Affairs Ministry spokesman Guo Jiakun said China and the US had "not conducted consultations or negotiations on tariffs." When asked to respond, Trump said the US had been meeting with China as recently as that morning.
  
  By May 2, China had exempted approximately $40 billion worth of American goods from tariffs and the United States had exempted about $102 billion worth of Chinese imports, based on 2024 import volumes. Both countries had expressed a willingness to engage in negotiations aimed at reducing tariffs, but the Chinese government asked the U.S. to eliminate its tariffs first. As previously planned, the U.S. terminated the de minimis exemption for Chinese imports the same day.
  
  On May 6, officials from the US and China planned to start talks over trade conflicts in Switzerland. He Lifeng, the Chinese Vice Premier, Scott Bessent, the US Treasury Secretary, and Jamieson Greer, the US Trade Representative, attended the talks.
  
  On May 12, officials from the US and China agreed to drastically reduce for 90 days the tariff rates, from 145% to 30% and 125% to 10% respectively, while further negotiations are held. The US also cut tariffs on Chinese shipments valued below the de minimis threshold of $800 from 120% to 54%. On June 11, Trump declared the trade deal "done", although China downplayed the deal as a framework representing the "first meeting".