Global Tensions Rise as US, China Clash on Trade, Security

US Secretary of Defense Pete Hegseth warned that China poses an "imminent" threat to Taiwan and urged Asian countries to boost defense spending and work with the US to deter war. He characterized China as seeking to become a "hegemonic power" that wants to dominate Asia, and accused Beijing of credibly preparing to use military force to alter the balance of power. China responded by accusing the US of being the "biggest troublemaker" for regional peace, citing US deployments of offensive weapons in the South China Sea. Hegseth urged Asian countries to increase their defense spending, saying "deterrence doesn't come cheap," and touted US military hardware and a new Indo-Pacific partnership for defense industrial resilience. The comments came at the Shangri-la Dialogue in Singapore, where the US sent a large delegation, while China's presence was notably diminished.

U.S. Defense Secretary Pete Hegseth reassured Indo-Pacific allies that the U.S. will support them against increasing military and economic pressure from China, particularly regarding Taiwan. Hegseth stated that China is "rehearsing for the real deal" and that the threat is "real and could be imminent." He urged regional countries to increase their defense spending and contribute more to their own defense, while also pledging to bolster U.S. defenses overseas. China's delegation responded by accusing Hegseth of making "groundless accusations" and attempting to "provoke trouble." Hegseth also addressed the need for allies to avoid economic dependence on China, which he said deepens China's influence and complicates defense decisions. The U.S. commitment to the Indo-Pacific region has been questioned due to the frequent diversion of military resources to other regions, but Hegseth emphasized the importance of a strong network of allies and partners in countering China's growing military capabilities.

US Defense Secretary Pete Hegseth told allies in the Indo-Pacific region that the US will bolster its defenses overseas to counter China's growing military and economic pressure, particularly towards Taiwan. Hegseth stated that China's military is "rehearsing for the real deal" and that the threat it poses is real and potentially imminent. He urged countries in the region to increase their defense spending and noted China's ambitions in Latin America, including attempts to increase influence over the Panama Canal.

French President Emmanuel Macron warned that if the US and China force nations to choose sides in their geopolitical rivalry, it would "kill the global order" and destroy institutions created after World War II to preserve peace and cooperation. He emphasized France's desire to cooperate with both countries without being dependent on either, and criticized China for aiding Russia in the Ukraine war and refusing to help stop North Korea from sending troops to fight for Moscow. Macron also linked various global conflicts, including the wars in Ukraine and Gaza, and argued that giving Israel a "free pass" in Gaza could harm global credibility.

South Korea's presidential election is likely to reset the country's ties with China, with front-runner Lee Jae-myung promising to stabilize and manage relations that became strained under former President Yoon Suk Yeol. Lee and his rival, Kim Moon-soo, share similarities in their foreign policy platforms, including deepening the alliance with the US and strengthening defense capabilities. However, they diverge on how to deal with North Korea and China, with Lee advocating for "pragmatic diplomacy" to ease tensions and Kim taking a harder line against China and North Korea. Lee has criticized Kim's approach as "unnecessarily antagonizing" China, North Korea, and Russia, and has pledged to improve ties with these countries within the framework of the US alliance. The election outcome is expected to significantly impact South Korea's relations with its neighbors and the US.

White House National Economic Council director Kevin Hassett said that President Donald Trump and China's President Xi Jinping may discuss trade as soon as this week, although no specific date has been set. Hassett noted that both sides have expressed a willingness to talk, and U.S. Trade Representative Jamieson Greer's team is in daily discussions with Chinese counterparts to move trade negotiations forward, following tensions that escalated after Trump accused China of breaking a preliminary trade agreement.

US Treasury Secretary Scott Bessent said a potential phone call between US President Donald Trump and China's President Xi Jinping "very soon" could help ease the trade row between the two countries, as China is allegedly withholding products, including rare earths, agreed upon in a recent bilateral deal.

US President Donald Trump plans to double tariffs on steel imports from 25% to 50% starting from Wednesday, also affecting aluminium imports. Trump made the announcement at a rally in Pennsylvania, stating that American "industries are coming back like never before". The UK is reportedly exempt from the new tariff rate due to a recently signed US-UK trade agreement. Trump's move deepens his trade war, which has impacted global markets, and follows his claim that China had "totally violated" an agreement to roll back tariffs and trade restrictions.

The EU has expressed strong regret over US President Donald Trump's plan to double tariffs on steel and aluminum imports from 25% to 50%, warning it could undermine ongoing trade talks and lead to countermeasures. The EU's executive arm, the European Commission, stated that the decision adds uncertainty to the global economy and increases costs for consumers and businesses. The move also raises questions about the UK's zero-tariff deal with the US on steel and aluminum, which was agreed but not yet signed. UK steelmakers described the doubling of tariffs as "yet another body blow" to the industry.

German Chancellor Friedrich Merz will meet US President Donald Trump at the White House next Thursday to discuss bilateral relations, the war in Ukraine, the Middle East situation, and trade policy, including tensions between the EU and the US, with Trump having threatened to impose a 50% tariff on EU goods.

President Trump's top economic advisers have stated that the administration's tariffs will remain in place despite a recent court ruling declaring many of them to be illegal. Commerce Secretary Howard Lutnick said "tariffs are not going away" and that there were other authorities the White House could invoke to pressure China and other nations into trade negotiations. The administration is expected to appeal the court decision, which is likely to reach the Supreme Court. Trump's advisers, including Lutnick and Treasury Secretary Scott Bessent, defended the tariffs as a means of protecting American jobs and pressuring China into trade talks, which they said had stalled.