US President Donald Trump suggested on Wednesday that a trade deal with China is “possible,” a remark that comes amid his aggressive tariff policy targeting both allies and adversaries. In 2020, the United States had already secured “a great trade deal with China,” and Trump reiterated that another agreement was “possible,” as he told reporters. When asked about his comments, Beijing’s foreign ministry stated on Thursday that the two countries should resolve their trade tensions through “mutual respect.”
One month into his second term, Trump has ramped up his use of tariffs as a tool to lower the massive US trade deficit. His administration recently imposed an additional 10 percent duty on all products imported from China. In response, the Chinese foreign ministry emphasized that the US and China “should resolve their concerns through dialogue and consultation based on equality and mutual respect.” Ministry spokesman Guo Jiakun warned that “trade and tariff wars have no winners and only serve to damage the interests of people all over the world,” while China’s commerce ministry urged the US not to “wield the big stick of tariffs at every turn, using tariffs as a tool to engage in coercion all around.”
Trump also threatened to impose 25 percent tariffs on all imported cars, along with similar or higher duties on pharmaceuticals and semiconductors. He mentioned to reporters aboard Air Force One that his administration was considering lumber tariffs of “maybe 25 percent” in the coming months. Earlier, Trump had announced 25 percent tariffs on Canadian and Mexican imports but later reversed the decision, granting a one-month reprieve until March 1. Moreover, he signed executive orders last week imposing 25 percent tariffs on steel and aluminum imports, set to take effect on March 12.
Experts have cautioned that tariffs often end up being paid by American consumers rather than foreign exporters. In retaliation, Beijing has responded by imposing customs duties of 15 percent on coal and liquefied natural gas and 10 percent on oil and other goods, including agricultural machinery and vehicles. According to the Bureau of Economic Analysis, China recorded the largest trade surplus with the United States in goods, amounting to $295.4 billion in 2024.
Amid these developments, Japan has requested an exemption from Trump’s tariffs on steel and aluminum exports, underscoring the importance of its auto industry. Tokyo’s trade minister, Yoji Muto, is arranging a visit to the United States in the coming weeks to further push for such exemptions, with expectations to meet US officials including the new Commerce Secretary Howard Lutnick before March 12, as reported by Kyodo News.
Trump’s remarks on tariffs also coincided with a statement from the European Union’s trade chief, Maros Sefcovic, who vowed on Wednesday that the bloc would respond “firmly and swiftly” to protect its interests if Washington imposes tariffs on EU goods. Sefcovic rejected Trump’s claim that US-EU trade ties are unfair, describing them as the “very definition of a win-win partnership,” but signaled the EU’s willingness to discuss reducing or eliminating tariffs on industrial products, including autos.
With these developments, Trump’s administration continues to use tariffs as a primary policy tool to reshape global trade relations, while the responses from China, Japan, and the European Union underscore the complex dynamics at play in international trade today.
