President Donald Trump has again intensified his trade offensive against China, stating that Beijing must take the first step toward resolving tensions, according to the White House. As quoted by Press Secretary Karoline Leavitt on Tuesday, Trump said “the ball is in China’s court” and insisted the U.S. doesn’t need a deal, but China does.
Hours later, Trump signed an executive order launching a national security investigation into U.S. reliance on foreign processed critical minerals, as reported by the White House. The order warns of “serious, sustained, and long-term supply chain shocks” and directs Commerce Secretary Howard Lutnick to assess risks under Section 232 of the Trade Expansion Act.
While the order didn’t name China, it is the top producer of 30 of the 50 critical minerals identified by the U.S. Geological Survey.
Newsweek reported that in a fact-sheet accompanying the executive order, the White House indicated tariffs on Chinese imports could reach 245%, while China has hit U.S. goods with 125% tariffs.
Trump also accused China of backing out of a major Boeing deal, following a Bloomberg report that Beijing instructed airlines to halt deliveries. Boeing shares fell 2.36%. Neither Boeing nor Chinese authorities have commented.
Chinese President Xi Jinping, writing in Vietnam’s Nhan Dan newspaper, warned that “trade wars yield no winners” and urged protection of the multilateral trading system.
As reported by the Associated Press, on Wednesday China appointed a new trade negotiator, Li Chenggang, amid rising tensions. Meanwhile, China announced stronger-than-expected 5.4% GDP growth in Q1, supported by exports. However, officials warned that tariffs could slow momentum.
According to the Financial Times, China held a $300 billion trade surplus with the U.S. last year. Economists cited in the paper suggest that while Trump’s tariffs could hit Beijing, China may find it easier to replace U.S. trade than the reverse.
