03-06-2025

US-China Trade War Escalates Amid Rising Tensions

Date: 03-06-2025
Sources: cbsnews.com: 1 | foxnews.com: 1 | scmp.com: 1
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Source: foxnews.com

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Summary

The US-China trade war is intensifying as both countries exchange accusations and take hardline stances on trade negotiations, with the US imposing tariffs and export controls, and China criticizing US actions as provocative and damaging to its interests.

Key Points

  • The US-China trade war escalates as China accuses the US of violating a May 12 trade truce by imposing export controls on AI chips and stopping sales of chip design software.
  • Tensions rise as China's Foreign Ministry criticizes US Defense Secretary Pete Hegseth for labeling China a threat, saying his comments reflect a 'Cold War mentality'.
  • The US has taken a hardline stance on trade negotiations, imposing tariffs on China and other countries, while restricting China's access to advanced technologies.

Articles in this Cluster

China says U.S. violated tariff truce as trade war heats up - CBS News

China accused the US of violating a May 12 trade truce by imposing AI chip export controls, stopping chip design software sales, and planning to revoke Chinese student visas, escalating tensions in the trade war. The US and China had agreed to a 90-day tariff pause, but China's Commerce Ministry said the US actions "seriously undermine the existing consensus" and damage China's interests. Treasury Secretary Scott Bessent remains "confident" that a trade dispute will be resolved when Trump and Xi Jinping talk. The renewed tensions caused Wall Street to fall, with the S&P 500 slipping 0.2%.

China accuses Hegseth of espousing 'Cold War mentality' for labeling country as a threat: 'Vilified' | Fox News

China's Foreign Ministry criticized US Defense Secretary Pete Hegseth for labeling China a threat, saying his comments were "filled with provocations" and touted a "Cold War mentality." Hegseth had spoken at the Shangri-La Dialogue security conference in Singapore, saying China's military is "rehearsing for the real deal" and the threat it poses is "real" and "could be imminent." China responded by stating that the US is the primary factor undermining peace and stability in the Asia-Pacific and urged the US to abide by the one-China principle and stop supporting "Taiwan independence" separatist forces.

US Economy, Trade & Business: Latest News and Updates | South China Morning Post

The US economy and trade are experiencing significant developments, particularly with regards to the ongoing trade war with China. US Commerce Secretary Howard Lutnick expressed optimism for a potential US-India trade deal, while criticizing efforts by the BRICS bloc to de-dollarize. US President Donald Trump has imposed tariffs on China, which have been met with resistance from the Chinese government. The US Court of International Trade blocked some of Trump's tariffs, citing that he overstepped his authority, but an appeal court later allowed them to stay in effect. Trump's administration has also imposed tariffs on other countries, including the EU, and has taken a hardline stance on trade negotiations. Meanwhile, US businesses are feeling the effects of the trade war, with farmers experiencing a decline in soybean exports to China, while companies like Boeing are seeing potential opportunities in the Chinese market. The US has also taken steps to restrict China's access to advanced technologies, including AI chips.