Donald Trump has reduced tariffs and eased his approach toward China, while raising steep duties on India and Brazil. What unique leverage does Beijing possess that these other nations lack?
After months of strained relations, China has moved to the center of U.S. President Donald Trump’s efforts to reset ties and prevent another damaging tariff war. Back in April, Trump labeled China as “America’s greatest threat,” accusing it of decades-long trade exploitation, and imposed sweeping tariffs of 145% on Chinese imports.
Fast forward a few months, and the tone has shifted dramatically. Trump has extended a tariff pause for China, praised President Xi Jinping as “a strong leader,” and hinted at a possible U.S.-China summit this fall. In contrast, countries like India and Brazil are now facing the steepest penalties — up to 50% tariffs — while China’s rate is capped at a comparatively lower 30%.
Why China is getting a softer approach
Several factors explain Trump’s more measured stance toward Beijing. First, the U.S. is heading into its crucial holiday shopping season, and avoiding a tariff hike ensures retailers can stock up on Chinese goods without a surge in costs. Second, Trump is buying time for negotiations on a broader trade deal covering key areas such as technology, energy, and rare earth minerals.
China also holds a strategic advantage: its dominance in rare earth production and refining. These minerals are essential for manufacturing electric vehicles, advanced electronics, and military equipment. Controlling around 60% of global production and nearly 90% of refining capacity, China has the power to disrupt U.S. supply chains. After Trump’s initial tariff hikes, Beijing tightened export controls on several rare earth elements and permanent magnets, hitting critical U.S. industries, including automotive manufacturing.
On top of that, Washington is pushing for limits on China’s access to advanced AI chips and urging Beijing to reduce imports of Russian oil, threatening additional sanctions and tariffs if volumes remain high. At the same time, Trump wants China to dramatically increase U.S. soybean purchases, which would support American farmers and help narrow last year’s $295.5 billion trade deficit between the two nations.
China’s negotiation goals
Beijing is seeking long-term tariff reductions, particularly on technology and manufacturing sectors, along with protection for Chinese companies from U.S. sanctions and guaranteed access to high-end U.S. chips. Meanwhile, China is signaling reduced reliance on American technology by discouraging the use of Nvidia’s most advanced export-approved processors.
Shifting attention and strategic timing
Trump’s focus isn’t solely on China. With multiple domestic and international challenges, including upcoming talks with Russian President Vladimir Putin, the U.S. administration is keen to avoid an economic standoff that could derail other priorities. The current tariff truce, extended until early November, allows both sides to address the most contentious issues without triggering a return to triple-digit tariffs.
India feels the heat
While China enjoys more leniency, India’s trade relationship with the U.S. has soured. Once considered a favored partner, India now faces tariffs of up to 50%, partly due to its purchases of Russian oil. Unlike China, India lacks the economic scale, critical exports, and retaliatory leverage that could force Washington to reconsider.
Behind-the-scenes pressure continues
Despite a softer public stance, the U.S. is tightening enforcement against Chinese exporters rerouting goods through Southeast Asia to bypass tariffs. A new 40% transshipment tariff has been applied to countries suspected of facilitating this practice, including Vietnam, Malaysia, and Thailand.
With negotiations set to continue, a partial trade thaw seems likely — one that could see reduced tariffs on certain Chinese goods and improved U.S. access to China’s market, while potentially sidelining other trade partners such as the European Union, South Korea, and Japan.
