What's happened
On May 20, 2025, the US and China agreed to a 90-day pause on tariffs, allowing both nations to prepare for future negotiations. While this truce offers temporary relief, underlying tensions remain, particularly regarding fentanyl trafficking and broader economic strategies. Analysts caution that long-term confrontations are likely as both sides navigate their complex relationship.
What's behind the headline?
Key Insights
- Temporary Relief: The 90-day tariff pause is a strategic move for both nations to reassess their positions and prepare for future negotiations.
- Fentanyl Crisis: The US has pressured China to curb the flow of fentanyl precursors, framing it as a critical issue for bilateral cooperation. However, China views this as a US domestic problem, complicating negotiations.
- Long-term Rivalry: Experts warn that while the tariff truce may ease immediate tensions, it does not resolve deeper economic and strategic rivalries. The potential for future confrontations remains high as both nations pursue divergent goals.
- China's Positioning: China is likely to leverage its economic and diplomatic strategies to counter US pressures, presenting itself as a stable alternative in the region while maintaining its territorial claims.
- Future Engagements: The possibility of a summit between President Trump and Xi Jinping could emerge from this truce, but analysts remain skeptical about the potential for meaningful progress given the historical context of their interactions.
What the papers say
According to the South China Morning Post, the recent agreement to roll back tariffs by 115% is seen as a success for Beijing, which has adopted a defiant stance against what it perceives as US economic bullying. Wu Xinbo, a Chinese expert, emphasized that this outcome reflects China's resilience in negotiations. Conversely, the New York Times highlights that while the tariff truce may open avenues for dialogue, it does not address the broader grievances China has with US military and technological policies. Chris Buckley notes that Beijing's cautious optimism is tempered by a recognition of the ongoing strategic competition. The Guardian adds that Xi Jinping's approach may be perceived as a tactical retreat by the US, but it also underscores China's commitment to its regional ambitions, suggesting that the truce may not lead to lasting peace. This divergence in perspectives illustrates the complexity of US-China relations and the challenges ahead.
How we got here
The US-China trade relationship has been fraught with tension, particularly since the onset of the tariff war initiated by former President Trump. Recent negotiations have led to a temporary tariff pause, but significant issues, including fentanyl trafficking and technology access, continue to strain relations.
Go deeper
- What are the main issues still dividing the US and China?
- How might this tariff pause affect global trade?
- What are the implications for the fentanyl crisis?
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More on these topics
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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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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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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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Xi Jinping is a Chinese politician serving as the general secretary of the Communist Party of China, president of the People's Republic of China, and chairman of the Central Military Commission.