THE TRADE war against the Chinese workers’ state has been the cornerstone of Trump’s second presidential tenure. However, it has completely failed to bring down the United States deficit.
Meanwhile, China has clocked up a mammoth trade surplus despite all the barriers that the US and UK ruling classes have imposed on it.
Currently, Chinese President Xi Jinping is holding talks with United States President Donald Trump at the White House during his state visit – the first by a Chinese leader in more than a decade – as the world’s two largest economies are locked in an ongoing struggle over the US trade war and the impact of Artificial Intelligence (AI).
Trump, however, has ramped up tariffs on Chinese goods after returning to power in 2025, and has since imposed curbs on the sale of AI chips to Beijing as the two nations compete for supremacy in the AI race.
China’s trade with other countries has also seen a sharp rise, with Beijing registering a $1.2 trillion global trade surplus last year.
A Congressional Research Service report noted that as of July 2026, Chinese goods in the US faced a tariff rate of 36.5 per cent, while US goods entering China were taxed at 31 per cent.
The rate varies sharply by product. For example, Chinese copper and its products faced an effective rate of 73.6 per cent in June 2026, while aluminium and its products faced 65.2 per cent, iron and steel items about 50 to 58 per cent and vehicles and auto parts 44.4 per cent. These figures show the variety of tariff layers applicable to specific products.
Soon after resuming office in January 2025, Trump imposed a 10 per cent duty on Chinese goods over fentanyl and immigration concerns, leading to the ongoing trade war. Beijing responded with levies on US coal, LNG, crude oil, and autos, as well as additional curbs on exports of five metals key to defence and clean energy.
By April 2025, the trade war escalated, with Chinese goods attracting 145 per cent tariffs while Beijing imposed a 125 per cent levy on US imports, in addition to curbs on rare-earth exports.
The rivals struck a tariff truce after talks in South Korea, which is due to expire on November 10th.
However, the truce has not prevented Washington and Beijing from engaging in trade curbs. Last month, the US banned imports of humanoid robots produced in China, sanctioned Chinese shipping operators over alleged handling of Iranian fuel, and imposed restrictions on other sectors, including a threat to sanction Chinese AI firms.
Beijing said it was left with ‘no choice but to take necessary countermeasures’, unveiling a package that sanctioned US firms and curbed exports of drones and their tech to the US.
The tariffs however are only one aspect of the broader economic and technology rivalry and conflict between the US and China.
The trade conflict also includes sanctions, entity lists, investment restrictions, and research restrictions, alongside turning supply chains into instruments of economic pressure.
Meanwhile, Washington’s main leverage is advanced technology. The US restricts China’s access to advanced semi-conductors and chip-making equipment, although the policy has become more selective in recent months.
Earlier this month, the US started a trial against Huawei, accusing the Chinese tech giant of stealing technology.
Chinese exports to ASEAN countries rose 14 per cent in 2025, to about $660bn, making it Beijing’s largest export market. Exports to the European Union countries rose 9 per cent, to about $560bn.
Until August this year, China had a goods trade surplus of about $820bn – already approaching the mammoth 2025 full-year surplus of roughly $1.2 trillion.
China’s revolution has led to the country being transformed. The US ruling class is terrified that the US workers will see the advantages of the Chinese nationalised economy and that they will follow suit and carry out the US socialist revolution.
There is no doubt that capitalism has had its day. The working class must take action now to bring down bankrupt and war-mongering capitalism and establish workers governments and socialist planned economies.
