On Trade Confrontation Between China and USA

Representatives of the USA and China agreed on a plan to implement the commitments on partial easing of restrictions in bilateral trade during negotiations in London. The approved plan will now be presented for approval to Chinese President Xi Jinping and US President Donald Trump.

The trade confrontation is always a risky venture. It leads to missed benefits, high costs, and signals the end of the era of globalization. Who is calculating the losses, and should we expect tariffs to be lifted? Let’s examine all the political elements and set the record straight in "Mendeleva’s Table."

The big picture is seen from afar, but it’s already clear that the damage from the trade war initiated by Washington will be substantial. CNN published a list of companies planning to raise prices due to tariffs imposed by US President Donald Trump, including Walmart and electronics retailer Best Buy. Some categories of household goods from Procter & Gamble, products from Adidas, and Mattel toys, including Barbie, are expected to become more expensive.

The automotive industry deserves special attention. Ford forecasts a 1.5% increase in car prices in the second half of 2025. Subaru explained that price hikes are necessary to "offset increased costs." There are also unforeseen circumstances. By increasing tariffs, the White House aimed to bring manufacturing back to the United States.

Donald Trump, President of the USA:

"We had the American Dream, which is spoken of less and less. We talked about it four years ago, we talk about it now. For decades, no one reminded you of it. Our country and its taxpayers have been robbed for over 50 years. But that will no longer happen."

Conversely, the American motor industry has begun discussing moving some of its plants out of the United States to China. According to The Wall Street Journal, the reason lies in the shortage of rare earth metals. China accounts for 90% of global supplies of these materials. Rare earth magnets are widely used in the production of everything from smartphones to F-35 fighters. However, in April, amid the trade war, Chinese authorities decided to suspend exports. That month, the trade between Beijing and Washington plummeted by 20 %.

Lín Jiāng, Spokesperson of the Chinese Ministry of Foreign Affairs:

"The American side should adhere to the principle of fair competition in the market. It must stop politicizing economic and trade issues and ensure a fair, just, and non-discriminatory business environment for enterprises of all countries, including Chinese companies. China will take necessary measures to firmly protect the lawful rights and interests of Chinese enterprises."

Even a temporary easing of tariffs may have only a limited effect, and such easing is not currently foreseen. The US has additionally imposed some discriminatory restrictive measures against China, seriously undermining the consensus reached during bilateral trade and economic negotiations in Geneva. In China, satirical videos on this topic have flooded social media.

Trump claims that tariffs have caused an "economic boom" in the US, and that there is no chance for Washington to survive if they are lifted. But is there a chance for survival under such conditions, for example, for Germany? Recently, Trump signed an order increasing tariffs on imported steel and aluminum up to 50 %. German media are already sounding the alarm. This has become a serious blow to the steel industry, which is already struggling due to high energy prices. Germany’s largest steel company is preparing for large-scale restructuring, with expected layoffs of over 10,000 workers. The European economy, still recovering from the impact of sanctions, is drowning in American tariffs.