Islamabad, Feb 21: One month into his second term, US President Donald Trump has suggested the possibility of a new trade deal with China, despite escalating economic tensions between the two global superpowers. Speaking aboard Air Force One on Wednesday, Trump referenced the 2020 Phase One trade agreement and hinted at potential fresh negotiations.
However, his hardline trade policies remain firmly in place. At the start of February, Trump’s administration imposed an additional 10% tariff on all Chinese imports, marking a return to his aggressive stance on trade deficits. Alongside China, the new wave of tariffs also targets Canada, Mexico, and the European Union, reinforcing his protectionist economic strategy.
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In response, China’s foreign ministry urged Washington to approach trade disputes with “mutual respect”, warning that tariff wars harm both sides and destabilize the global economy. Ministry spokesman Guo Jiakun emphasized that economic coercion is counterproductive, while China’s commerce ministry criticized the US for using tariffs as a diplomatic pressure tool.
The renewed trade confrontation echoes Trump’s first-term policies, particularly the 2020 Phase One trade deal, which required China to purchase more US goods in exchange for tariff relief. However, disputes lingered, with Washington accusing Beijing of failing to meet its commitments, and China criticizing the US’s unpredictable trade policies.
With Trump’s re-election, these tensions have resurfaced, raising concerns about global market instability. While his latest comments suggest a possible deal, analysts question whether this is a genuine outreach or a negotiation tactic in an ongoing geopolitical standoff.
