U.S. President Donald Trump said on Tuesday he is in no hurry to speak to Chinese President Xi Jinping to try to defuse a new trade war between the world's two largest economies sparked by his sweeping 10% tariffs on all Chinese imports.
China imposed targeted tariffs on U.S. imports on Tuesday and put several companies, including Google, on notice for possible sanctions, in a measured response to Trump's tariffs.
"That's fine," Trump said at the White House when asked about China's retaliatory duties.
A conversation between Xi and Trump is seen as key to a potential easing or delay of tariffs, as conversations with Mexican and Canadian leaders did on Monday.
White House spokeswoman Karoline Leavitt told reporters that a Trump-Xi call still needed to be scheduled.
"President Xi did reach out to President Trump to speak about this, maybe to begin a negotiation. So we'll see how that call goes," Leavitt told Fox Business Network earlier on Tuesday.
Beijing's limited reply to Trump's imposition of a 10% tariff on all Chinese imports underscored the attempt by Chinese policymakers to engage Trump in talks to avert an outright trade war between the world's two largest economies.
Capital Economics, a UK-based research firm, estimated that China's additional tariffs would apply to about $20 billion of annual imports, compared with the $450 billion worth of Chinese goods subject to the Trump tariff that took effect at 12:01 a.m. ET on Tuesday.
"The measures are fairly modest, at least relative to U.S. moves, and have been calibrated to send a message to the U.S.," Julian Evans-Pritchard, the firm's head of China Economics, said in a note.
Trump on Monday suspended his threat of 25% tariffs on Mexico and Canada, agreeing to a 30-day pause in return for concessions on border and crime enforcement.
EUROPE NEXT?
Trump suggested on Sunday that the European Union would be his next target for tariffs, but did not say when.
Ursula von der Leyen, head of the EU's executive European Commission, said Brussels would be ready for tough negotiations but underlined the need to lay foundations for a stronger partnership with the EU's largest trade and investment partner.
"We will be open and pragmatic in how to achieve that. But we will make it equally clear that we will always protect our own interests – however and whenever that is needed," she said in a speech.
The European Commission and the new U.S. administration have been in contact at a technical level but von der Leyen and Trump have not spoken directly yet, a Commission spokesperson said.
China's new measures, announced as the Trump tariffs took effect, include a 15% levy on U.S. coal and LNG and 10% for crude oil, farm equipment and a small number of trucks as well as big-engine sedans shipped to China from the United States.
China said it was starting an anti-monopoly investigation into Alphabet's Google. It put PVH Corp, the holding company for brands including Calvin Klein, and U.S. biotechnology company Illumina, on a list for potential sanctions.
PVH said in a statement it was surprised and "deeply disappointed" by China's decision, adding it maintains strict compliance with all relevant laws, regulations and standards.
"Illumina has a long-standing presence in China ... Wherever Illumina operates, we comply with all laws and regulations," an Illumina spokesperson said in an email.
Google declined to comment on the investigation.
EXPORT CONTROLS ON SOME METALS
China said it was imposing export controls on some metals, including tungsten, that are critical for electronics, military equipment and solar panels.
The 10% duty China announced on electric trucks imported from the United States could apply to Elon Musk's Cybertruck, a niche offering Tesla has been promoting in China. Tesla had no immediate comment.
China's new tariffs will not take effect until Monday, giving Washington and Beijing time to try to seek a deal that Chinese policymakers have indicated they hope to reach with Trump as China's domestic demand sputters.
During his first presidential term, Trump initiated a two-year trade war with China over its U.S. trade surplus, with tit-for-tat tariffs upending global supply chains and damaging the world economy.
"The trade war is in the early stages so the likelihood of further tariffs is high," Oxford Economics said in a note as it downgraded its China economic growth forecast.
Trump said he might increase tariffs on China further unless Beijing stemmed the flow of fentanyl, a deadly opioid, into the United States.
China has called fentanyl America's problem and said it would challenge the tariffs at the World Trade Organization and take other countermeasures, while leaving the door open for talks.
The United States is a relatively small source of crude oil for China, accounting for 1.7% of its imports last year, worth about $6 billion. Just over 5% of China's LNG imports come from the United States.
"Even if the two countries (the United States and China) can agree on some issues, it is possible to see tariffs being used as a recurrent tool, which can be a key source of market volatility this year," said Gary Ng, senior economist at Natixis in Hong Kong.
There was relief in Ottawa and Mexico City after Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum said they had agreed to bolster border enforcement, pausing for 30 days 25% U.S. tariffs due to take effect on Tuesday.
EU trade chief Maros Sefcovic said he wanted early talks with the United States to ward off potential tariffs.
"We believe through constructive engagement and discussion we can resolve this problem," he said.
© Thomson Reuters 2025.
25 Comments
Underworld
The trade war, which cost billions and is still affecting farmers to this day.
Expect more pain for the US economy.
Bob Fosse
I've read hundreds of books about China over the decades. I know the Chinese. I've made a lot of money with the Chinese. I understand the Chinese mind.
Xi is a brilliant guy, really smart. I think his wife is terrific.
EvilBuddha
The trade war, which cost billions and is still affecting farmers to this day.
The same folks who have no problems in sending billions to Ukraine are now suddenly worried about tariffs on Chinese imports.
EvilBuddha
By the way the Biden administration kept the tariffs that Trump applied on Chinese imports during his first term.
If tariffs on China were as harmful to the US as the leftists claim they are, why didn't Biden remove them?
One of the few good things done by the Biden administration was to continue Trump’s tariffs on China.
Underworld
EvilBuddha
The trade war, which cost billions and is still affecting farmers to this day.
Stopping dictators from unbridled imperialism and illegal wars in Europe are a worthwhile use of billions.
Trade wars are just a complete waste of money and gain nothing for everyone involved.
EvilBuddha
Trade wars are just a complete waste of money and gain nothing for everyone involved.
Ok. So why didn't Biden reverse the tariffs that Trump slapped on China during his first term.
Underworld
EvilBuddha
Trade wars are just a complete waste of money and gain nothing for everyone involved.
The trade war had already begun. Removing tariffs wouldn’t guarantee China would start buying tofu from the United States. They had already found new suppliers.
fallaffel
The point is to stop depending on China. I think both parties are in favor of this.
JJE
He is sensibly recalculating, like a game of chess, after a first few moves.
China is not Columbia, Panama, Mexico, Canada or Denmark and those Eurocrats in the Brussels - they won't be an easy pushover, who can be checkmated faster than a lawn chair folds.
JJE
Misspelt: Colombia
TaiwanIsNotChina
The war on Ukraine is a national security threat. And it is paid for out of the federal government revenues and not by people on the street. Many people do not pay income tax.
Underworld
JJE
Trump can’t even play checkers… ;-)
TaiwanIsNotChina
China already folded on meeting with Biden's representatives when initially they tried to pull their Middle Kingdom nonsense.
Underworld
fallsffel
Not possible.
TaiwanIsNotChina
Really going to have to decide whether Xi is the chess grandmaster or whether you are going to laughably try to convince us as usual that Trump is the chess grandmaster.
lincolnman
Bogus...the Moron talked to Xi as soon as he won last Nov...he was the SECOND person - after he called his Master Putin...
All three likely discussed how they can destroy democracy in America and implement a criminal kleptocracy similar to what we see in Russia and China...
"Project 2025" - straight from Moscow and Beijing...
quercetum
Thank you Japan for showing us through the Plaza Accord what not to do and how to respond properly to the US: you fight back.
Give them an inch and they’ll take a mile.
Take note Canadiens.
Fos
EvilBuddha
EvilBuddha, the war in Ukraine as we know is an existential threat for the US industrial military complex: $110 billions of dollars of American made weapons make a lot of commission that you can distribute over and over for to manipulate masses, to make sure the conflict continues. Same as what it is going on in Gaza, and the warmongering attempts in Asia. That explains the historical records in Wall Street and the fact the top five manufacturers in the world are all US based.
Don’t go too far with ethical questions and moral values, we are talking about America business first
Ken
A whole country is not supposed to be a social experiment for rich people to toy with, It won't be fun spending 10 years trying to undo what happens the next 4 years
Fos
That exemplifies the moral authority of present's day America to the world.
The power of the US industrial military complex, waging wars to Eastern Europe, Middle East, and desperately trying to turn Asia into a powder keg, with the obnoxious manipulation of the narrative against China, what is really left at Washington, apart from Netanyahu's buddies?
quercetum
And USAID is showing the US sent over $40 million to scientists in the Wuhan lab. You get what you pay for.
Trump is doing well cleaning this up even though the above occurred during his first term.
You all might be grateful you’re on the right side of history on this one.
Tokyo Guy
I think this is actually a good thing. The less he talks (to anyone, about anything), the less chance he has to embarrass us even further on the world stage.
If he has anyone in his administration who actually understands China, he should send that person instead.
quercetum
Trump understands China well enough. It starts with money. No one is going to pay the $200/month subscriptions for AI apps when there are free and open source alternatives.
The U.S. is not going to keep paying for these NGO’s that are like barnacles choking a tortoise or a parasitic maggot fly larvae stuck in the nostrils of a kitten. Extract and remove.
Tariffs on allies make sense, as it redefines "allies": Trump America doesn’t want - or rather can't afford -vassals anymore, but rather relationships that evolve based on current interests.
Japan should be next ally and in the talks with Ishiba, Trump can be expected to tell Japan to pay more. You want the brand name US military or the brand name OpenAI, like Son of SoftBank, Japan should pay more.
This is the post-American world order - brought to you by America itself.
stormcrow
“China doesn’t pay for tariffs! Americans pay for tariffs!”
. . . Al Franken (former U.S. senator)