--- title: "Trump Is Learning a Hard Lesson About China" description: "After weeks of trade war escalations, the White House now wants to substantially walk back its threatened tariff rate." date: "2025-04-25" modified: "2025-04-25" authors: - name: "Joe Wilkins" job_title: "Correspondent" link: "https://futurism.com/authors/jwilkins" url: "https://futurism.com/trump-tariffs-china-lesson" categories: - "Future Society" tags: - "china" - "donald trump" - "shipping" --- # Trump Is Learning a Hard Lesson About China ![After weeks of trade war escalations, the White House now wants to substantially walk back its threatened tariff rate.]() *WASHINGTON, DC - APRIL 13: U.S. President Donald Trump walks on the south lawn of the White House on April 13, 2025 in Washington, DC. The president was returning from a weekend in Florida attending a UFC Fight Saturday night. (Photo by Tasos Katopodis/Getty Images) \Image: Tasos Katopodis/Getty Images\* Three weeks out from "liberation day" — when Donald Trump announced [severe tariffs]() on US allies and adversaries alike — the president is reeling from a [hard lesson]() about the global economy in 2025**:** that China, not the United States, is holding the leash on international trade. After a series of [confusing financial escalations]() and [retaliations](), the White House now wants to substantially walk back its threatened tariff rate, which at one point rose as high as [245 percent](). "No one thinks the current status quo is sustainable" with tariff rates that high, Trump's Treasury Secretary Scott Bessent told JP Morgan bigwigs at a [closed door meeting]() in DC earlier this week. But while Trump has insisted that Chinese officials were negotiating to bring that number down, Beijing says it [hasn't been in contact]() with the US at all — evidently content to watch as American businesses agonize in the wake of Trump's hystrionics. Trump has [previously insinuated]() that Xi should "request a call" to discuss trade relations, evidently too proud to make the first move. At one time, officials in Beijing had hoped that Elon Musk, who has substantial business holdings in mainland China, might [act as a go-between]() for Xi and Trump, avoiding the ugly business of tariffs altogether. That's obviously out the window now. Instead, China has reportedly considered whether to "kneecap" US tech companies like Tesla, Apple, Qualcomm, and Intel, according to a [*CNN* analysis](), but has so far backed off for fear of upsetting Chinese consumers. Still, US tech companies are bearing the brunt of the tariff whiplash, as Chinese-made consumer goods like iPhones [skyrocket in price](), and China halts the [export of rare earth metals](), to [Musk's horror](). China, meanwhile, seems well positioned to wait out the storm. It currently dominates the [global electric vehicle market](), has legions of [manufacturing robots]() at its disposal, and boasts a [record-breaking freight rail system]() to keep its supply chain running. Average Americans might not be in such a good spot. In the three weeks since liberation day, [shipping container traffic]() from China to the US seems to be plummeting. Weekly cargo bookings bound for the US from Chinese manufacturers are reportedly down as much as [60 percent]() across all industries, signaling doom for Americans used to cheap consumer goods. As Trump carries on his game of chicken with Xi, it remains to be seen: will the American tycoon fold under the pressure, or will he bide his time while the US plunges into financial ruin? Time will tell. **More on China:** [*China Fires Up World's First Thorium-Powered Nuclear Reactor*]() ## Author At Futurism, I focus on the intersection of technology and power — examining the economics, history, and politics behind today’s dystopian headlines. As a writer, I’m interested in topics ranging from AI’s impact on labor to startups nobody asked for. My prior work includes bylines in Jacobin, Verso, and Blue Labyrinths. My work for Futurism has been cited by publications including Forbes, The Guardian, MIT Technology Review, Time, The Nation, Mother Jones, The Verge, and Wired. I grew up in Michigan, attending Central Michigan University as well as Ball State University, where I earned a master of music. I now live in Brooklyn with my girlfriend and our cat Ziti. On weekends, you can find me hunched over a cold pint arguing geopolitics with the other transplants. ### Author social links [Bluesky]()