China’s trade gambit: Beijing plays hardball in Trump tariff talks to try to save its economy

By Tom Howell Jr. - The Washington Times - Wednesday, June 4, 2025
China enters high-stakes trade talks with the U.S. with a laser focus on reducing President Trump’s tariffs and semiconductor restrictions to protect its economy, which is hobbled by an aging population, a weak housing sector and other domestic problems.
Given the pressure on Beijing, Trump administration officials say they have the upper hand in negotiations. Still, China’s intent on playing hardball is a shift from its more collaborative approach during Mr. Trump’s first term, which resulted in a “phase-one” trade deal.
“The Chinese economy continues to experience serious challenges, including a weak property sector, growing debt in local governments, and high youth unemployment. U.S. tariff hikes are also taking a toll on Chinese exporters, particularly those focused on making products destined for the U.S. market,” said Wendy Cutler, a vice president at the Asia Society Policy Institute, a think tank in Washington.
“China is looking to achieve a deal which would spare it from U.S. tariff increases,” she said, but “Beijing has its limits in terms of what it would pay to receive such assurances.”
Unlike other countries that came to the negotiating table, China retaliated against Mr. Trump’s “Liberation Day” tariffs by imposing hefty levies on U.S. goods, an early sign that Chinese President Xi Jinping had no plans to cater to Mr. Trump’s will. After all, the U.S. has its own pressures, particularly from price-sensitive consumers who will chafe at higher, tariff-driven costs in the checkout aisle.
Tit-for-tat tariffs exceeded 100%, prompting de-escalation talks in Geneva that reduced U.S. tariffs on Chinese imports to 30% and Chinese tariffs on U.S. goods to 10%.
Reaching a deeper understanding of trade is proving difficult. On Wednesday, Mr. Trump acknowledged in a Truth Social post that Mr. Xi was a tough cookie.
“I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!” he wrote.
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READ MORE: https://www.washingtontimes.com/news/2025/jun/4/chinas-trade-gambit-beijing-plays-hardball-trump-tariff-talks-try/
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