Trump's trade war with China in focus ahead of May summit

Trump to Visit China in May Amid Trade Tensions

BEIJING – U.S. President Donald Trump is set to meet Chinese President Xi Jinping in May during his first visit to China in eight years. The trip is closely watched, coming just a year after Washington imposed sweeping—and at times unpredictable—global tariffs.

The economic standoff between the world's two largest economies has evolved from tit-for-tat tariffs to managing tensions through trade talks, phone calls, and a presidential meeting last year.

Key Developments in 2026

March – The U.S. launches new Section 301 unfair-trade probes into Chinese industries. China responds with reciprocal investigations. Plans for a summit between Trump and Xi were underway, but the visit was delayed to mid-May as tensions rose over the Iran war.

U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met Chinese Vice Premier He Lifeng and top trade negotiator Li Chenggang in Paris for a sixth round of talks, which both sides described as "constructive."

February – The U.S. Supreme Court rejects Trump’s global tariff regime. Trump indicates he will continue using tariffs.

January – China ends 2025 with a record trade surplus, benefiting from redirected trade to Southeast Asia, Africa, and Latin America, as exports to the U.S. declined.

Key Developments in 2025

October – China strengthens control over critical minerals, expanding export restrictions on rare earth elements and increasing scrutiny on semiconductor users.

The U.S. imposes another 100% duty on Chinese imports and introduces export controls on critical software. Both countries also target each other’s shipping industries.

Trump and Xi met in Busan, South Korea, agreeing to a trade truce: Washington would reduce tariffs, while Beijing would address the illicit fentanyl trade, resume U.S. soybean purchases, and pause rare earth export curbs.

September – The U.S. and China discuss TikTok divestiture. The U.S. also pushes talks on trade in chemicals, aircraft engines, and parts.

June–August – Trump says the trade truce is back on track after some Chinese rare earth magnet producers begin receiving export licenses. The U.S. starts issuing licenses to Nvidia to export advanced AI chips to China, while Trump urges China to quadruple U.S. soybean purchases. The tariff truce is extended by another 90 days.

May – In the first round of trade talks in Geneva, both sides agree to a 90-day truce, allowing high tariffs to be reduced. Three weeks later, Trump accuses China of violating the agreement to roll back tariffs and ease curbs on critical minerals. China responds that the U.S. introduced multiple "discriminatory restrictive" measures.

April – After returning to office with a 10% punitive tariff on Chinese goods, Trump announces sweeping "Liberation Day" tariffs on all imports, worsening relations. China retaliates, and both countries raise levies against each other to over 100%. China also begins restricting some rare earth exports.

-Reporting by Liz Lee; Editing by Thomas Derpinghaus/Reuters