Daijiworld Media Network – Washington (DD)
Washington, Jun 3: In a renewed round of trade turbulence that is stirring global economic anxiety, US President Donald Trump’s tough-talking diplomacy has once again placed America’s trade ties with China and the European Union on edge.
Despite months of deliberation and temporary tariff pauses, breakthroughs remain distant. Beijing and Brussels have both expressed increasing frustration over what they term as America’s “uncompromising approach” to international trade engagements.
China has accused the US of "seriously undermining" recent tariff truce efforts and warned of potential retaliatory measures. Beijing’s main grievance stems from Washington's reluctance to ease export restrictions—particularly around rare earth materials that are vital to advanced technological production in both countries.
The Trump administration, however, has pushed back, claiming that Beijing is the one stalling progress. Meanwhile, anticipation is mounting over a proposed high-level call between Trump and Chinese President Xi Jinping—yet, there has been no confirmation from Beijing, deepening the uncertainty.
Meanwhile, the European Union has reacted sharply to Trump’s proposed 50% tariff hike on steel and aluminum imports. EU leaders, already uneasy over past trade frictions, have warned that such aggressive moves could derail efforts to resolve long-pending issues.
EU Commission President Ursula von der Leyen, who held a telephonic discussion with Trump recently, managed to secure a temporary postponement of the tariffs—now scheduled for July 9. However, officials in Brussels remain wary, describing the situation as “precarious and escalating.”
Trump’s team maintains that the tariff threats are a necessary negotiating tactic. White House Press Secretary Karoline Leavitt remarked on Monday that the administration remains “hopeful and optimistic” that ongoing negotiations will yield results.
Yet, legal clouds loom large. A recent US Court of International Trade ruling deemed a majority of Trump-era tariffs to be illegal—a decision currently under appeal. If upheld, it could severely restrict the former president’s ability to wield tariffs as a diplomatic tool.
The global economic response has been swift. European stock markets dipped sharply on Monday, while US factory output showed signs of slowing. Supply chains continue to reel under pressure, with small manufacturers and exporters expressing alarm over shifting policies.
Despite the tension, diplomatic channels remain open. US Trade Representative Jamieson Greer is expected to meet his EU counterpart in Paris this week. Meanwhile, Treasury Secretary Scott Bessent voiced optimism in a television interview, saying that a direct Trump-Xi conversation could “iron out persistent issues.”
Beyond boardrooms and balance sheets, the ripple effect of these trade tensions is being felt by ordinary citizens. Students, especially from China, are increasingly uncertain about their future in the US amid rising visa restrictions.
“I’ve built a life here, and my research depends on international collaboration,” said a Chinese graduate student, speaking on condition of anonymity. “Now, I don’t know if I’ll even be able to finish my degree.”
As the globe teeters on the edge of a potential trade freeze, eyes are locked on whether dialogue between world leaders can thaw the ice—or whether diplomatic deadlock will cast a longer shadow on the global economy.