White House Doubles Down: No China Tariff Cuts Without Deal—Trump Plays Hardball on Trade

Trade tensions flare as the White House confirms Trump won’t budge on China tariffs without concessions. A high-stakes game of economic chicken—because nothing says ’diplomacy’ like squeezing markets for leverage.

Meanwhile, Wall Street analysts quietly update their ’worst-case scenario’ spreadsheets—just in case the art of the deal turns into the art of the deadlock.

Talks begin with both sides digging in

Even though both governments are walking into the room, no one expects some big breakthrough. It took weeks just to agree to meet, and right now, the goal seems to be figuring out where to even begin. The vibe isn’t friendly. It’s tactical. No one wants to look like they gave in first.

“Neither side wants to appear to be backing down,” said Stephen Olson, who used to be a trade negotiator for the US and now works as a senior visiting fellow at the ISEAS-Yusof Ishak Institute in Singapore. “The talks are taking place now because both countries have judged that they can MOVE forward without appearing to have caved into the other side.”

Chinese Foreign Ministry spokesperson Lin Jian told reporters on Wednesday that the meeting is only happening because Washington requested it. The Commerce Ministry backed that up, saying the talks are a response to pressure from American companies and buyers.

But Trump isn’t having any of that. At the WHITE House this week, he pushed back hard. “They said we initiated? Well, I think they ought to go back and study their files,” he said. In his view, it’s China that wants a deal because, according to him, “their economy is collapsing.”

Still, the damage from the tariffs is obvious on both sides. Chinese factories have slowed down. Official data shows manufacturing output fell to its lowest level since December 2023, and Caixin’s latest survey says services are at a seven-month low. The BBC reported that Chinese exporters are stuck with stockpiles sitting in warehouses while they scramble to find buyers outside the US.

American industries and voters feel the pain

Trump says the tariffs will make America stronger in the long run, but he’s also admitted they’re going to hurt. He told his cabinet that US kids “may have two dolls instead of 30 dolls,” and those two might cost a few bucks more.

A toy company owner in Los Angeles told the BBC that their business is staring down the “total implosion of the supply chain.” And it’s not just toys. Across multiple industries, companies that rely on parts or goods from China are reporting shortages, rising costs, and delayed deliveries.

Over in Beijing, officials waited until the long May Day holiday ended before agreeing to sit down. Bert Hofman, a professor at the National University of Singapore, said, “I think [China] realises that a deal is better than no deal.” He added, “So they’ve taken a pragmatic view and said, ‘OK, well, we need to get these talks going.’”

Meanwhile, the US economy just shrank for the first time in three years. That’s not something the Trump administration can spin away easily. His approval numbers have slipped, with more than 60% of Americans saying he’s putting too much focus on tariffs. The fear of inflation and another recession is growing, and the White House knows it. Sadly, it doesn’t care very much.

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