US-CHINA TRADE WAR
The US has deepened its trade war with China. The 145% tariff on Chinese imports is paused, but ships have stopped crossing the Pacific. Restrictions have been placed on export of semiconductors (computer chips) and aerospace equipment needed for Chinese commercial aircraft. The Chinese have retaliated with restrictions on export of rare-earth magnets, used in automobiles and aircraft, of which China controls 90% of the world’s supply. The US is cancelling visas of Chinese students of which there are currently 277,000 in the US, many of whom are engaged in valuable research and paying full tuition.
Lack of Chinese imports will cause prices to rise in the US and loss of Chinese scientific talent will hurt. “Decoupling” the US from China will limit whatever understanding of China exists in the US and vice versa. It could eventually lead to a war of weapons. Consider the case of US-Japan relations in 1940-41: first there was a trade war, and then a shooting war.
Source: The New York Times, 5/30/25