China prepares for full-scale trade war after abandoning deal with US

China has given up on the prospect of reaching a comprehensive trade agreement with the United States and is instead preparing for an extended period of economic confrontation.

Recent tariff actions by the Trump administration have led to a shift in Beijing’s approach, with hopes for dialogue replaced by frustration and strategic recalibration, Caliber.Az reports, citing The Wall Street Journal.

The developments signal a significant setback for Chinese officials who had previously pushed for engagement and compromise with Washington. With their position weakened, Chinese policymakers are now believed to be adopting a more hardline stance, anticipating a prolonged phase of retaliatory measures between the two countries.

​On April 2, 2025, President Donald Trump announced the implementation of extensive tariffs affecting numerous countries, including China. These tariffs impose a baseline rate of 10% on imports from 185 nations, with specific higher rates targeting certain countries and products. ​

China, in particular, faces a 34% tariff on its exports to the United States. In retaliation, China has imposed a similar tax on all U.S. goods. This escalation threatens the burgeoning petrochemical trade between the two nations, which has seen U.S. exports of liquefied petroleum gas (LPG) and ethane to China grow tenfold since 2018. The imposition of these tariffs jeopardizes this interdependent relationship, as China may seek alternative suppliers, potentially leaving U.S. exporters struggling to find new markets. ​

By Khagan Isayev