Dear Focus Reader,

This week, the Trump administration intensified its trade offensive against China, implementing tariffs that cumulatively reach up to 245% on certain Chinese imports. This escalation comprises a 125% reciprocal tariff, a 20% levy addressing the fentanyl crisis, and Section 301 tariffs ranging from 7.5% to 100% on specific goods. The administration also released an updated list of over 1,000 product exemptions to mitigate domestic economic impacts.

China has maintained its tariffs on U.S. goods at 125% and dismissed the U.S. tariff strategy as a "numbers game," indicating a reluctance to engage further on this front.

Chinese President Xi Jinping also concluded a diplomatic tour of Southeast Asia, visiting Vietnam, Malaysia and Cambodia from April 14 to 18, as part of efforts to strengthen economic ties amid U.S. tariff tensions. During these visits, Xi emphasized China's reliability as an economic partner and criticized protectionist policies. In Cambodia, the two countries signed 37 agreements covering various sectors, including finance, health, and infrastructure. Notably, China pledged investment in the $1.156 billion Funan Techo Canal project.

China is actively lobbying other nations as well, especially in the Global South and Southeast Asia, to resist U.S. tariff policies. Additionally, the Chinese government plans to convene an informal United Nations Security Council meeting on April 23 to directly address U.S. economic measures, stating Trump is "casting a shadow over the global efforts for peace and development" by weaponizing tariffs.

Simultaneously, the European Union and China are continuing to work to recalibrate their relationship. European Commission President Ursula von der Leyen and Chinese Premier Li Qiang recently met to discuss tariffs and announced a forthcoming EU-China Summit in July, marking the 50th anniversary of diplomatic ties.

Learn more by catching up on our latest Focus content, including articles on the state of the U.S. dollar, how tariffs are impacting the Chinese economy, and lessons from past wars.