Name: WSJ Explains the Latest Developments in the U.S.-China Trade War
Uploaded: 2025-04-24T08:17:00Z
Duration: 1 min 47 s
Description: President Trump appears to have softened his tone on China, but Beijing’s message remains that it will not negotiate under duress and is prepared to fight to the end. WSJ's Jason Douglas reports.

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President Trump appears to have softened his tone on China, but Beijing’s message remains that it will not negotiate under duress and is prepared to fight to the end. WSJ's Jason Douglas reports. Photo: Mandel Ngan and Pedro Pardo/AFP/Getty Images

https://m.wsj.net/video/20250424/f8826043-7cce-43ea-9768-7f5b028ca562/1/hls/manifest-hd-wifi.m3u8

President Trump appears to have softened his tone on China, but Beijing’s message remains that it will not negotiate under duress and is prepared to fight to the end. WSJ's Jason Douglas reports.

WSJ Explains the Latest Developments in the U.S.-China Trade War

Trump has blinked, and the way this will be interpreted in Beijing is that China has a much greater tolerance for pain than the US does.

I get along very well with President Xi, and I hope we can make a deal. Otherwise, we'll set a price and...

What the White House is considering is a plan to bring down tariffs from their current level of well over 100% to something more like 60%. You would still have high tariffs on what are considers strategic goods, so things like cars and semiconductors and aircraft. Those would still be well in excess of 100%, but they are thinking about a tiered system where you would have much lower tariffs on ordinary imports, consumer goods, that kind of thing. So it would be a very different approach to what we have right now, which is tariffs of well in excess of 100% on everything from China.

Part of Beijing's strategy is certainly to suggest to Trump that they're not rattled by what he's doing at all, and they seem very keen not to take the first step in ratcheting down tensions either. It seems clear that they think that strategy is working now that Trump is the one to signal that he is prepared to deescalate and reduce tensions. The real risk here is that trade war spills over into arenas that are removed from tariffs, that it isn't just tariffs that get affected, but the US for instance has talked about delisting Chinese stocks. Could it stop, you know, investors putting money into China? Could it put further restrictions on investment flows? Trump says that he wants China to give him a call. It doesn't seem like China will do that until they see some real movement on tariffs.

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