Trump piles pressure on Xi with latest threat to raise tariffs

US President Donald Trump

President Donald Trump unveiled additional tariffs on Chinese imports, raising the risk of Beijing ramping up its retaliation and a spiraling of tensions between the world’s two largest economies.

Trump said Thursday in a social media post that China will be charged an additional 10% tariff on March 4, citing continued drug flows from North American neighbors at what he called “very high and unacceptable levels” and China’s alleged role in its supply.

The new tariffs on China come on top of a previous 10% duty implemented earlier this month and represent part of Trump’s broad salvos against Beijing on issues spanning trade, technology and investment.

Beijing’s response to the first round of tariffs has been measured but strategic, imposing levies on select US products to minimize damage on its own economy while signaling options for more significant countermeasures if needed.

As tensions rise, Chinese President Xi Jinping has called on his top officials to stay composed. Notably, China’s major state media outlets including Xinhua News Agency and People’s Daily didn’t report on the US leader’s remarks as of Friday morning.

Bloomberg economist Maeva Cousin said the shock of the existing and expected tariffs on the Chinese economy “should be manageable,” citing the small share of its value added — just over 2% — tied to US exports.

“In the medium term, it is also likely that China will find new markets for its exports — although this may be met with resistance from partners in the rest of the world, already concerned about Chinese overcapacity in some sectors,” Cousin wrote in a note on Friday.

Such pushback is already becoming apparent. Over the past week, both South Korea and Vietnam followed in Washington’s footsteps and slapped tariffs on Chinese steel products to halt surging supplies from the world’s biggest producer of the metal.

Despite the escalation, both Beijing and Washington appear keen to prevent a breakdown in their relationship. Chinese Vice Premier He Lifeng spoke with Treasury Secretary Scott Bessent last Friday — the second high-level contact since Trump took office — indicating continued communication. China’s Defense Ministry said Thursday talks with the US military are in the works.

Trump has also highlighted his personal ties with Xi, saying last week that a new trade deal with China was possible. While he signaled in early February that he’d be speaking with Xi “very soon,” that conversation has yet to take place.