Tariff War and Escalation of Tension in China-US Relations

2025/04/13 | Economy, interview, top news

Strategic Council Online – Interview: The Secretary-General of the Iran-China Strategic Studies Institute believes that following the tariff war between China and the US, relations between Washington and Beijing face a turbulent outlook during the Trump era.

In an interview with the Strategic Council on Foreign Relations website, Farshad Adel stated: In this turbulent period of relations between the two countries, China’s final approach is to try to get through this situation with minimal risk and to be prepared to find solutions to return to the US market.

Stating that Trump’s preferred view is in politics and that the Chinese economy also relies on exports, he said: The increasing tendency to use Chinese goods in the US market has led to a trade deficit of about $300 billion in US trade with China, which means an unprecedented increase in US imports from China and a decrease in US exports to China.

This strategic affairs expert pointed out that the trade volume between the United States and China in 2024 is estimated at $583 billion. According to statistics, $438.9 billion of this trade volume was related to exports of Chinese goods to the United States adding: “These numbers indicate the importance of the American market for the Chinese economy, and it is evident that making it more difficult for Chinese goods to enter the American market will have short-term effects such as a decrease in China’s economic growth rate and a weakening of the yuan.

He believes that in the long run, this could have broader effects on the Chinese economy and change the country’s economic strategies in relying on exports. This will also lead China to pay more attention to domestic market demand and accelerate its plans to invest in advanced technologies.

Adel pointed out that in the international dimension and considering that other markets are also struggling with the US tariff war, Trump’s declaration of the trade war on the world can be viewed as an opportunity for China because if European countries take retaliatory measures against the US tariffs, this will provide China with an opportunity to expand its economic influence in the world by giving motivating incentives.

The Secretary-General of the Iran-China Strategic Studies Institute reminded about the tariff war between the US and China: Trump’s tariffs include many US allies in addition to China, and if the US does not reach a win-win understanding with countries such as Japan, Australia, Canada, and the European Union, it will face challenges for the US economy, and we will witness the collapse of the economic order formed after World War II.

According to this economic expert, this issue could create an opportunity for China, which has presented initiatives such as the “Belt and Road” and the “two-speed economy” in 2013 and 2020, to lead the disintegrated networks of the world economy with strategic foresight and economic flexibility.

According to the expert, from such a perspective, China’s position on economic confrontation with the United States does not seem weak. Beijing imposed a 34% tariff on all goods imported from the United States in the first step, and this action is targeted pressure that will significantly affect Trump’s voter base.

In reviewing other Chinese countermeasures to confront the US economic and trade war, he added: In another action, the People’s Republic of China announced that it would impose controls on the export of seven rare earth minerals and their derivatives, which also directly targets the weak links in the US technology and defense supply chains. China accounts for approximately 90 percent of the world’s rare earth minerals, and this will affect the advanced US aerospace industry and companies like Lockheed Martin because the United States reserves of rare earth minerals are not enough to meet the ongoing needs of companies active in the country’s defense and aerospace sectors.

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