Photo :AI-GENERATED. 

May 24, 2025

Anna Murray 

On May 19, China’s Ministry of Commerce accused the United States of“undermining” trade negotiations in Geneva after Washington issued warnings against the use of Huawei-manufactured AI chips. Just two days later, on May 21, Beijing criticized the U.S. for allegedly misusing export controls. Tensions also persist over fentanyl precursor chemicals, which China argues are primarily a domestic issue for the U.S.

These disputes come on the heels of an unexpected breakthrough on May 12, when both countries agreed to temporarily reduce tariffs by 115 percentage points for 90 days. Under the agreement, U.S. tariffs on Chinese goods were lowered to 30%, while China’s duties on American products dropped to 10%. The move provided a brief respite in the ongoing trade conflict.

However, analysts warn that unless a lasting deal is reached before the truce expires, tariffs could snap back to previous levels. If that happens, experts estimate bilateral trade could be cut in half, potentially shrinking China’s GDP by up to 1.6% and putting four to six million jobs at risk.