China Remains Silent as U.S. Imposes New Tariffs

China has shown little reaction to the United States' latest move to impose an additional 10% tariff on all Chinese imports, maintaining a measured stance even as other affected countries push back.

Both Canada and Mexico swiftly responded with retaliatory measures. Canadian Prime Minister Justin Trudeau announced a 25% tariff on more than $100 billion (£81 billion) worth of American goods, vowing that Canada “will not back down.” In response, U.S. President Donald Trump agreed to temporarily suspend tariffs on imports from both countries after reaching separate agreements. However, the new tariffs on China are still set to take effect on Tuesday.

Despite the looming tariffs, Beijing has yet to retaliate. In 2018, when Trump initiated his first wave of tariffs against Chinese imports, China responded defiantly, stating it was "not afraid of a trade war." This time, Beijing has opted for a more cautious approach, calling for dialogue and urging Washington to “meet China halfway.” Reports suggest that a call between Trump and Chinese President Xi Jinping could take place later this week.

While the new tariffs are expected to have an economic impact, the Chinese government appears keen to avoid stirring domestic concerns, especially amid growing anxieties over the country’s slowing economy.

China is also less reliant on the U.S. than it was in previous years. Beijing has significantly expanded its trade partnerships across Africa, South America, and Southeast Asia, now serving as the primary trading partner for more than 120 countries.

Chong Ja Ian, a scholar at Carnegie China, suggests that Beijing is downplaying the significance of the new tariffs.

“China will likely feel it can withstand a 10% tariff—so Beijing is playing it cool. If the impact is not significant, there is little reason to escalate tensions with the Trump administration unless doing so offers a clear strategic advantage,” he said.

For now, China appears to be watching and waiting. Whether it will take further action remains to be seen.

Xi’s ‘Win-Win’ as America Retreats

Chinese President Xi Jinping may see a strategic opportunity amid growing global uncertainty.

As U.S. President Donald Trump pushes his "America First" agenda, he has not only imposed tariffs on China but has also threatened to target the European Union (EU)—all within his first month in office. His approach has raised concerns among U.S. allies, who may now question their economic ties with Washington.

In contrast, Beijing is positioning itself as a calm, stable, and reliable trade partner.

“Trump’s America-first policy will bring challenges and threats to almost all countries in the world,” says Yun Sun, director of the China program at the Stimson Center. “From the perspective of U.S.-China strategic competition, a deterioration of U.S. leadership and credibility will benefit China. It is unlikely to turn out well for China on a bilateral level, but Beijing surely will try to make lemonade...”

Xi has long been vocal about his vision for China to lead an alternative world order. Since the end of the Covid-19 pandemic, he has increased diplomatic outreach, reinforcing China’s support for global institutions like the World Bank and the Paris climate accords. Chinese state media has framed this as a commitment to strengthening international ties.

This approach is not new. In 2020, when Trump halted U.S. funding to the World Health Organization (WHO), China stepped in with additional financial support. Now, as Washington withdraws aid from various global initiatives, China may once again seek to fill the void—despite facing its own economic slowdown.

As the U.S. pulls back, Beijing appears poised to expand its influence, offering an alternative to countries looking for stability in a shifting global landscape.

Trump’s Foreign Aid Freeze Fuels Global Uncertainty

On his first day back in office, U.S. President Donald Trump froze all foreign assistance provided by the United States, the world’s largest aid donor. As a result, hundreds of USAID-funded programs came to a standstill, creating widespread disruption. While some initiatives have since resumed, aid contractors describe ongoing chaos, with the future of the agency uncertain.

Trump’s approach could further diminish Washington’s influence on the world stage, says John Delury, a historian of modern China and professor at Yonsei University in Seoul.

“The combination of tariffs on major trade partners and freezing of foreign assistance sends a message to the Global South and OECD alike that the U.S. is not interested in international partnership or collaboration,” Delury told the BBC.

Against this backdrop, Chinese President Xi Jinping’s consistent message of “win-win” globalization takes on renewed significance. For years, Beijing has sought to challenge the U.S.-led world order, and the uncertainty of Trump’s second term could present an opening.

New Alliances Forming

Still, some analysts question whether this shift will give China a decisive advantage.

“Whether it really confers Beijing a key advantage—of that, I’m a little less sure,” says Chong Ja Ian, a scholar at Carnegie China. “Many U.S. allies and partners, especially in the Pacific, have a reason to work with Beijing, but they also have reasons to be wary.”

This wariness has led to closer cooperation among U.S. allies in the region. The Australian Institute of International Affairs notes "gathering momentum" for a trilateral alliance among Australia, Japan, and South Korea, largely driven by the uncertainty of a second Trump administration.

Concerns over China’s assertiveness in the South China Sea and fears of a potential conflict over Taiwan have pushed these nations—along with the Philippines—toward stronger security cooperation. Beijing considers Taiwan a breakaway province and has not ruled out the use of force to bring it under Chinese control. The issue remains one of the most contentious points in U.S.-China relations, with Beijing consistently condemning any American support for Taipei.

However, with Trump making unpredictable geopolitical moves—including threats to annex Canada or buy Greenland—some nations in the Indo-Pacific may seek alternative security arrangements. Traditionally, many countries in the region have relied on military ties with Washington to counterbalance their economic dependence on China. But as distrust of both major powers grows, new alliances could emerge—ones that exclude both the U.S. and China.

Calm Before the Storm: China Weighs Its Response to Trump’s Tariffs

U.S. President Donald Trump’s latest tariff announcement came just as Chinese families were celebrating the Lunar New Year, a time of joy and tradition when households invite the God of Fortune into their homes. Across China, bright red lanterns sway over quiet streets, as most workers have traveled back to their hometowns for the country’s biggest holiday of the year.

While Canada and Mexico reacted swiftly and defiantly, China’s response has been noticeably restrained. The country’s commerce ministry has announced plans to challenge the tariffs through the World Trade Organization (WTO). However, this move carries little weight—Trump effectively crippled the WTO’s dispute resolution system in 2019 by blocking the appointment of judges to handle appeals.

As the holiday period draws to a close and party officials return to Beijing, critical decisions loom.

Recent developments suggest some optimism within China’s leadership. Officials have been encouraged by indications that the Trump administration may seek to maintain stability in U.S.-China relations, particularly after the two leaders had what Trump described as “a great phone call” last month.

For now, Beijing is maintaining a measured approach, likely in hopes of negotiating a deal that could prevent further tariffs and keep relations between the world’s two largest economies from deteriorating further.

However, many analysts believe this period of calm cannot last. Both Republicans and Democrats in Washington increasingly view China as the United States' primary foreign policy and economic rival.

“Mr. Trump’s unpredictability, his impulsiveness, and recklessness will inevitably lead to significant shocks in the bilateral relationship,” warns Wu Xinbo, professor and director at the Centre for American Studies at Fudan University.

“Additionally, his team includes quite a few hawks—some even extreme hawks—on China. It is unavoidable that the bilateral relationship will face serious disruption over the next four years.”

China remains deeply concerned about the impact of a prolonged trade war on its slowing economy. At the same time, Beijing is likely to seize the moment, leveraging the political turbulence in Washington to strengthen its global influence and rally international partners to its side.

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