Trump China Relations Exposed: Is Trump Now Playing Soft — and Why?

In recent months, Trump China relations have taken a surprising turn. After launching foldership of tariff storms with China, President Trump’s tone has softened noticeably.
Is he genuinely recalibrating — or is this strategic fear?

From Tariff Storms to Trade Truce

Since reclaiming office in January 2025, Trump reintroduced sweeping tariffs on Chinese imports –10% in February, rising to 125 -145% by April — a move partly justified via national emergencies over fentanyl and trade imbalances.

However, in April, he hinted that tariffs “will come down substantially… but not to zero”, signaling a potential u-turn. By mid-May, a 90-day tariff pause was agreed upon, collapsing rates to ~30% on Chinese products while China cut its retaliatory tariffs to ~10%

Is China Quietly Becoming the Next Superpower?

As U.S. trade policy shifts and tariffs ease, China’s silent ascent as a global superpower becomes harder to ignore and reopens trade channels with China, the question looms — is China now emerging as the next global superpower? Its dominance in manufacturing, rapid strides in artificial intelligence, global infrastructure projects under the Belt and Road Initiative, and growing influence in Asia, Africa, and even Europe, point toward a reshaping of global order.

China has steadily reduced its dependency on Western technology while the West remains deeply integrated with Chinese supply chains — especially in semiconductors, rare earths, and consumer electronics. This asymmetric dependency may explain why even Trump, who once promised to decouple, is now realigning his strategy. The geopolitical chessboard seems to be shifting — and China is playing the long game with quiet confidence.

Industry Levers: Semiconductor Giants and the China Nexus

The pause in tariffs triggered rejoicing across U.S. semiconductor-heavy firms — Nvidia, Broadcom, AMD — which soared ~4–5% on trade optimism as access to China’s massive AI market reopened temporarily. These companies have long depended on sales to Chinese firms for advanced chips and AI infrastructure.

Despite broader restrictions on chip exports, the U.S. is allowing Nvidia’s H20 GPUs and EDA software tools from Cadence, Synopsys, and Siemens to resume exports to China — after months of bans under national-security policies.

Tone Shift: “Mr. Nice Guy” No More — or Not?

In late May, Trump took to Truth Social declaring, “So much for being Mr Nice Guy”, accusing China of violating the deal after the tariff rollback stabilization. Yet, just weeks earlier, he had praised Xi Jinping as “very smart” and gracious, stating “something positive will come from the trade war” despite heavy tariffs on China.

The mixed messaging suggests a calculated tightening of trade, rather than outright aggression.

Xi Jinping & Political Calculation at Work

Trump’s recent interviews show admiration for Xi’s leadership style — which contrasts sharply with earlier hostility. He emphasized “respecting strength” and hinted at resuming bilateral talks similar to the Phase One trade era.

Treasury Secretary Scott Bessent even warned businesses to not panic about August tariff deadlines, asserting U.S. leverage remains strong — and talks are “constructive”.

Global Stakes: Is Trump Scared of China?

If a tough-talking Trump is moderating his approach, it signals a recognition that China is no longer bully fodder — it is a strategic and economic superpower.
He must balance domestic support for manufacturers and high-tech growth with the reality that U.S. companies (from Nvidia to Apple) rely on Chinese demand and manufacturing chains.

Why a Truce Matters: Who Benefits?

China: Gains breathing space to stabilize economy and resume export growth amid tariff reductions.

U.S. Tech Firms: Get access to foundational markets. That’s why companies like Nvidia are bidding relief when chips flow again.

Trump Administration: Gains political capital from appearing tough yet pragmatic, especially heading into 2026 elections.

Global Markets: Eased trade tension offers short-term relief as IMF warns of ripple effects from tariff shockwaves.

👉 Explore how Trump’s diplomatic strategies contrast with his stance on India in our deep dive on Trump–India Relations.

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