“Well, you’re in one now,” Trump said, officially confirming that the US and China are locked in a new trade war — even as Treasury Secretary Scott Bessent left the door open for a temporary tariff truce.
Trade Tensions Flare Again
President Donald Trump on Wednesday bluntly confirmed that trade tensions with China have reignited, telling reporters that a prolonged trade war is already underway. His remark came just hours after Treasury Secretary Scott Bessent suggested that an extension of the current tariff pause was still possible, adding that Trump plans to meet with President Xi Jinping later this month.
The conflicting messages reflect an increasingly volatile and uncertain tone in US-China relations. While Trump continues to threaten new tariffs, Bessent and others in his administration appear to be pushing for short-term stabilization.
From 100% Tariff Threats to Mixed Messages
Last Friday, Trump announced plans to impose an additional 100% tariff on Chinese goods beginning November 1, citing Beijing’s new export controls on rare earth minerals. The move reignited market fears of another round of inflationary shocks and supply chain disruptions.
By Monday, however, Trump struck a more conciliatory tone, writing on Truth Social:
“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment.”
But optimism quickly faded as China retaliated, sanctioning US units of a South Korean shipping firm and halting US soybean imports. Trump fired back by threatening to further restrict trade if Beijing didn’t “play fair.”
Tariffs Timeline & Current Status
The US currently maintains tariffs of up to 145% on some Chinese goods, though those duties are paused until November 10 while negotiations continue. China, in turn, has imposed tariffs as high as 125% on US exports before agreeing to the temporary pause.
New duties have also gone into effect this month:
- Oct. 1: Tariffs on kitchen cabinets and vanities
- Oct. 14: Tariffs on timber, wood products, and furniture
Meanwhile, the Supreme Court is preparing to hear a case challenging Trump’s “reciprocal” country-by-country tariff policy early next month. A ruling against the administration could have sweeping implications for Trump’s broader trade agenda.
Corporate Reactions
- Apple (AAPL) CEO Tim Cook met with China’s industry minister this week and pledged to boost investment and cooperation in China, despite Trump’s threats to tariff iPhones made abroad.
- Stellantis (STLA) announced a $13 billion investment in US manufacturing over the next four years, creating 5,000 new jobs — a move seen as both a hedge and a patriotic gesture amid tariff uncertainty.
- Goldman Sachs estimates that American consumers and companies will shoulder more than half of Trump’s new tariffs, as businesses raise prices to offset higher import costs.
Despite mixed messages from Washington, the US-China trade war has officially resumed, with new tariffs already rolling out and more threats looming. Markets are bracing for renewed volatility, while both nations attempt to balance economic nationalism with diplomatic necessity ahead of Trump’s expected meeting with Xi.
The world’s two largest economies are once again in a high-stakes standoff — and this time, neither side seems eager to blink.
Related:
US Treasury chief: Beijing’s rare earths move is ‘China vs world’
Trump Escalates Trade War With China: 100% Tariffs, Software Export Bans
