A tariff reprieve from President Donald Trump sent global markets soaring on Wednesday, with the White House saying it’s been in touch with dozens of countries about striking deals, lining up calls and meetings in the coming weeks.
But one country was conspicuously absent from any outreach: China
As the rest of the world received a 90-day respite, Trump escalated tariffs on China, saying the US will now charge an extra 145% on all Chinese goods that arrive in the US. In response, Beijing ratcheted up its own tariffs on American goods Friday to 125%, and the country’s leader — who Trump is urgently working to engage — warned China was “not afraid” of a prolonged trade conflict.
In private discussions hours before China announced new retaliatory tariffs, the Trump administration warned Chinese officials against such a move, according to a source familiar with the discussions. The Chinese were also told – once again – that Chinese President Xi Jinping should request a call with US President Donald Trump.
Instead, US officials woke up to news of increased Chinese tariffs and no request for a leader level call. Xi also made comments that only dug him in further. For over 70 years, China’s development has relied on self-reliance and hard work — never on handouts from others, and it is not afraid of any unjust suppression,” Xi said according to state broadcaster CCTV during his meeting with the Spanish prime minister.
An unprecedented trade war between the world’s two economic superpowers is quickly taking shape, with both countries waiting for the other to blink. But for months, US and Chinese leaders have been talking past each other, allowing relations to sour as each country’s overtures go unanswered. Behind the scenes, official channels at the working level are active, but high-level dialogue has not been happening. Meanwhile, unofficial channels have proven unproductive, according to three sources briefed on the situation, paving the way for a game of economic chicken with a costly and uncertain end.
China’s reliance on strict protocol and desire to prepare Xi for any call of this magnitude is fundamentally at odds with how Trump does business, some current and former officials say, which they point to as the main hangup in trying to get productive talks underway.
China has been trying to set up a back channel, like it had with President Joe Biden’s national security adviser, Jake Sullivan, but so far that effort has been unsuccessful. The US objection, according to officials: The Trump administration has balked at China’s Foreign Minister Wang Yi serving as the interlocutor, suggesting that Wang is not close enough to Xi’s inner circle and cannot be trusted.
Source: Here
