Eagle and Dragon clash again: Trump’s China tariffs.
This development comes after two days of discussions held in London, where both sides aimed to address and resolve lingering disputes that had previously threatened to derail past agreements. The progress made in these talks is seen as a potential breakthrough in stabilizing economic ties between the world’s two largest economies amid ongoing tensions and tariff concerns.
Senior negotiators from the United States and China have reportedly reached a framework agreement aimed at advancing trade discussions, Chinese state media reported on Wednesday. The negotiations were meant to repair diplomatic damage after a series of disputes threatened to unravel a previously fragile truce.
The Geneva agreement, brokered just weeks earlier, had temporarily halted hostilities between the world’s two largest economies. However, that delicate peace began to fray in the face of renewed tensions and tit-for-tat policy shifts. The breakdown in progress prompted a direct phone call between U.S. President Donald Trump and Chinese President Xi Jinping last week, during which both leaders sought to ease the escalating friction and reaffirm a commitment to dialogue.
Measures set to take effect on February 4. The White House cited national security concerns and the ongoing fentanyl crisis as the primary drivers of the decision.
According to U.S. officials, the new tariffs specifically target Chinese imports that are suspected of being linked to the trafficking of fentanyl and its chemical precursors. Trump’s administration has long accused China of failing to adequately regulate the production and export of fentanyl-related substances, which have contributed to the opioid epidemic in the United States.
The executive order did not stop with China. Citing similar concerns over the role of cross-border shipments in the drug crisis, U.S. authorities indicated that the new measures were designed to exert pressure on neighboring countries to implement stricter controls on pharmaceutical exports.
Additionally, the U.S. government moved to eliminate the long-standing de minimis exemption, a rule in place since 1938 that allowed goods valued under \$800 to enter the country without being subject to tariffs or intensive customs inspections. The move introduces stricter rules for both postal services and commercial delivery firms, such as FedEx and UPS, placing the burden on carriers to more rigorously screen incoming low-value packages.
Bipartisan criticism of the de minimis exemption has grown in recent months, with lawmakers from both parties labeling it a “loophole” that allows a flood of untariffed goods—many of them Chinese—to bypass scrutiny. Critics argue that the policy has also been exploited to smuggle illicit drugs and counterfeit items into the U.S. market with relative ease, undermining domestic businesses and public safety.
The move was seen as a direct response to the latest round of American tariff hikes and marked a further escalation in the trade conflict. According to a statement from the ministry, the Chinese government’s imposition of export controls is intended to “better safeguard national security and interests” and comply with international non-proliferation obligations.
Despite the rising tensions, negotiators expressed cautious optimism. Chinese Vice Minister of Commerce Li Chenggang echoed similar sentiments, noting that both sides had “agreed in principle” on a framework to operationalize the consensus reached during the Geneva talks.
The developments signal a renewed, albeit fragile, effort to manage an increasingly complex trade relationship under Trump’s second term, with high political stakes on both sides of the Pacific.