US President Donald Trump indicated on Sunday (October 19, 2025) that his government may reconsider the tariff policy if China takes some positive steps in favor of America. This statement has come at a time when just a few days ago the Trump administration had announced to increase the duty on goods imported from China by 100 percent and implement software export control from November 1.

Trump told the media that relations between him and Chinese President Xi Jinping are better than normal. He said that differences exist between the two countries, but if Beijing does something good for America then reduction in tariffs is possible. According to Trump, this is no longer a one-way street. We will protect our interests but there is scope for agreement if China cooperates.

Tension rising again in trade war

After the peace of the last few months, the US-China trade war seems to be intensifying once again. Washington has recently tightened export controls on technology products and is preparing to impose additional duties on Chinese ships in US ports. In response, China has imposed strict rules on the export of rare earth minerals and other strategic materials.

Preparation for new negotiations and possible agreement

US Treasury Secretary Scott Besant has confirmed that representatives of the two countries will hold new trade talks in Malaysia this week. This meeting is being seen as an attempt to improve relations after Trump’s recent statements and the canceled meeting with Xi Jinping. Beijing has also indicated that it is ready for a new round of talks amid the tariff dispute.

WTO’s warning – threat to the global economy

World Trade Organization (WTO) Director General Ngozi Okonjo-Iweala has warned that the ongoing trade conflict between America and China could cause huge damage to the global economy. He said that if this tension continues, there could be a decline of about 7% in world production. According to him, the US-China trade tension is not only bilateral but will affect the entire world economy.

What is Trump’s strategy?

Experts believe that this policy of Trump is part of his “Deal Diplomacy”. They first take tough steps, then open the way for talks so that political and technical concessions can be achieved. The Trump administration’s tariff policy has also affected the US technology sector, especially the semiconductor and software industries, which consider China a major market.

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US President Donald Trump has once again adopted a tough stance against China and announced the imposition of 100% additional tariff on all Chinese imports from November 1, 2025. Along with this, he has also announced to implement export control on important software made in America.

This move comes at a time when trade and geopolitical tensions are already heightened between the world’s two largest economies. Experts believe that if this policy is implemented, it can seriously affect the global markets.

Trump’s allegation – China is holding the global economy hostage

Trump made a scathing attack on China while posting on his social media platform Truth Social. He wrote that China has adopted an unusually aggressive stance in trade and this will affect all countries. Trump claimed that China is planning to impose export restrictions on most of its products, which is creating imbalance in the global market. In response, Trump said that now America will also take equally strict steps. He announced that from November 1 we will impose 100% additional tariffs on China. This will be in addition to their existing tariff.

What will be the effect of Trump’s tariffs?

Tariff means tax imposed on goods imported by a country. When the tariff on a foreign product is increased, its price also increases. This reduces the demand for foreign goods and gives domestic industries a competitive edge, but Trump’s move can also have negative effects. Consumer goods will be expensive in America. Prices may increase in sectors like electronics, automobile, mobile and electric vehicle (EV). Apart from this, the supply chain between America and China may also be affected.

Declaration of control on software export

Trump also announced that from November 1, the US will impose export controls on critical software. This means that the sale of artificial intelligence (AI), data security, military technology or industrial software to China will be limited. Experts say that this step can have a big impact on China’s tech companies, electric vehicle manufacturers and defense industry. This is also being considered a strategic step towards maintaining American technological edge.

What did experts say on the tariff?

Economic experts say that this policy of Trump is not only an economic but also a political strategy. Ahead of the 2025 elections, he is presenting himself as a staunch supporter of the America First policy. According to Dr. Alexander Mitchell, an expert at a Washington-based think tank, this is a sign of Trump’s new trade war strategy. Their objective is to save domestic industries and reduce dependence on China. However, he also warned that if China retaliates by imposing sanctions on American goods, it will affect the entire global economy.

Diplomatic tension and meeting canceled

This step of Trump has come at a time when he had planned to meet Chinese President Xi Jinping a few days ago, but now he has indicated to cancel this meeting. Trump said that when China increased controls on the export of rare earth elements, it held the entire global economy hostage. These rare metals play an important role in the manufacturing of electronics, EV batteries and defense equipment and China holds about 80% share in this market.

Also read: ‘Now I will not meet Jinping…’, Donald Trump’s anger on China again, threatened to impose heavy tariffs