economy
January 27, 2026
‘Never interrupt your adversary when he’s making a mistake’: Why Beijing isn't rushing to answer Trump’s tariff broadside
Analysts expect the U.S.-China trade truce to hold as Beijing bets Trump won’t follow through on his threats ahead of a leaders’ meeting in April.
TL;DR
- Trump is using indirect threats and policy moves, affecting China's interests without direct tariff escalation.
- Analysts believe China is betting Trump's threats will not be fully enforced, aiming to preserve the April trade truce.
- Recent U.S. actions include seizing Venezuelan oil and threatening tariffs on countries trading with Iran.
- Trump also threatened to take over Greenland, causing concern in Beijing regarding Arctic routes and rare-earth resources.
- Canada's trade deal with China emerged as a flashpoint, with Trump warning of a 100% tariff if Ottawa proceeded.
- Prime Minister Mark Carney reached a trade deal with China, leading to reciprocal tariff rollbacks.
- Beijing's official stance is that the trade agreement with Canada is not aimed at any third party.
- China aims to project stability in its ties with Washington amidst rising global tensions.
- China's strategy involves maximizing global distrust of the U.S. through commentary and presenting itself as a supporter of multilateralism and free trade.
- Beijing has shown few signs of planning concrete policy responses to counter Trump's recent actions.
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