US-China Trade Tensions: A Game of Tariffs and Negotiations

Sat Oct 25 2025 09:07:00 GMT+0300 (Eastern European Summer Time)

The latest developments between the U.S. and China reveal intense trade negotiations as both nations leverage tariffs and rare earth material regulations.

Tensions between the U.S. and China have surged following a phone call between their leaders. As the U.S. imposes sanctions on Chinese companies, China retaliates by limiting exports of critical materials. Trump's threats of higher tariffs complicate the situation as both nations maneuver for a strategic advantage ahead of potential summits.

WASHINGTON (AP) — The calm following the Sept. 19 phone call between U.S. President Donald Trump and Chinese President Xi Jinping had barely ended when strong undercurrents surged.

First, the U.S. government widened sanction rules on Chinese companies, leading to Beijing restricting exports of rare earth materials. Trump then threatened to impose a 100% tariff on Chinese goods. “I threaten them with tariffs,” Trump said, suggesting additional action against China.

Beijing, in response, relayed its resolve to resist U.S. pressures, stating, “high tariffs are not the right way to get along.” Both nations are caught in a strategic tug-of-war, each seeking an upper hand in negotiations.

Leverage in Trade

Experts note both sides are deploying a variety of tactics to enhance their negotiating positions. Nick Burns, a former ambassador to China, stated, “Both sides are trying to define what success is.” But the game involves more than mere negotiations; Craig Singleton from the Foundation for Defense of Democracies mentions a ‘equilibrium of vulnerability’ affecting strategy.

China is leveraging its strengths in collecting rare earth resources, while the U.S. holds technology and economic power. Jonathan Czin from Brookings there indicates China is going on the offense with regulations on rare earth, aiming to set the terms of engagement.

Overall tensions reflect both nations gearing for a potential trade summit while attempting to navigate through their complex relationship.