What's happened
As of May 6, 2025, US-China trade negotiations remain stalled, with both sides hesitant to engage. The Trump administration's internal divisions complicate the situation, while China signals it will wait for the US to make substantive moves. Meanwhile, the US and Ukraine have signed a minerals deal aimed at bolstering Ukraine's defense against Russia.
What's behind the headline?
Current Dynamics
- The Trump administration is experiencing significant internal divisions regarding trade policy, with key advisers holding conflicting views. Peter Navarro and Robert Lighthizer advocate for a protectionist stance, while Treasury Secretary Scott Bessent supports negotiations for a trade deal.
China's Position
- China is adopting a cautious approach, waiting to see how the US navigates its internal conflicts before engaging in talks. A source noted, "There is no clear sign which clique will win," indicating uncertainty in US policy direction.
Implications for Trade
- The ongoing tariff deadlock is expected to persist, with China focusing on strengthening ties with non-US markets. This strategy reflects a broader shift towards self-reliance and domestic consumption, which has been in motion since 2020.
Future Outlook
- As the US approaches the end of its 90-day grace period for tariff negotiations, the potential for increased tensions looms. Observers suggest that the US market's performance will be critical in determining the next steps in trade relations.
What the papers say
According to Bloomberg, Peter Navarro criticized the UK's compliance with China, suggesting that the UK should resist becoming a dumping ground for Chinese products. Meanwhile, The Independent reported on the recent US-Ukraine minerals deal, which aims to secure long-term support for Ukraine's defense against Russia. South China Morning Post highlighted the internal divisions within the Trump administration, noting that these conflicts are causing hesitation in trade negotiations with China. Additionally, a Weibo account affiliated with China Central Television indicated that China is waiting for the US to make substantial moves before engaging in talks, emphasizing the cautious stance Beijing is taking in the current climate.
How we got here
The US-China trade relationship has been fraught with tension, particularly since the Trump administration initiated tariffs. Recent developments include a minerals deal between the US and Ukraine, which is seen as a strategic move to support Ukraine amid ongoing conflict with Russia.
Go deeper
- What are the implications of the US-Ukraine minerals deal?
- How are internal divisions affecting US trade policy?
- What is China's strategy in response to US tariffs?
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What are the key points of the UK-India trade deal and US-China tensions?
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More on these topics
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
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China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.4 billion in 2019.
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Peter Kent Navarro is an American economist and author. He serves in the Trump administration as the Assistant to the President, Director of Trade and Manufacturing Policy, and the national Defense Production Act policy coordinator.