Instead of battling over tariffs, Washington and Beijing have turned to a potentially far more harmful strategy: flexing their control over global supply chains.
Big deals to sell chips to the U.A.E. and Saudi Arabia have divided the U.S. government over whether they could be remembered for shipping cutting-edge A.I. overseas.
The president said reducing tariffs to 80 percent from the current 145 percent “sounds right,” as U.S. and Chinese negotiators prepare to meet in Switzerland.
Scott Bessent, the Treasury secretary, and Jamieson Greer, the United States trade representative, will discuss trade and economic matters with the officials this week.
While imports can swing with seasonal shifts, President Trump’s ratcheting up of U.S. tariffs on China has begun to cascade through supply chains, government data shows.
President Trump said that “we’re meeting with China” on tariffs, comments aimed at soothing jittery financial markets. But Chinese officials say no talks have taken place.
The president’s threats of tariffs have brought countries like Japan, South Korea and India rushing to negotiate, but they have sown chaos with bigger trading partners like China.