- Trump said he’s confident a new trade deal with China is coming despite rising tensions.
- Tariffs on Chinese imports could hit 245%, escalating the ongoing trade dispute.
- JPMorgan’s CEO warned that a trade war with China could seriously harm the U.S. economy.
With geopolitical tensions ramping up and talk of a full-blown trade war buzzing in the background, President Donald Trump on Thursday shared his belief that a fresh trade deal with China is not just possible—but likely. Speaking to the press, Trump made it clear he expects a renegotiated agreement to come together, even amid the back-and-forth tariff chaos.
It all started when the Trump administration rolled out its Liberation Day tariff plan in early April, stirring the pot with new levies. The initial rollout came with a 90-day pause (kind of a cooling-off period), but then—boom—things escalated. Tariffs aimed at China were hiked, and now they might climb as high as 245%, according to the latest info from the White House.
Tariffs Rising, Tensions Too
Naturally, this hasn’t gone over smoothly with Beijing. Chinese officials have made no secret of their frustration, taking aim at what they call an “America-first” economic strategy. They even went so far as to call Trump’s actions “extremely shameless,” which, well… says a lot about how talks are going.
Still, despite the fiery rhetoric and headline-grabbing tariffs, Trump remains upbeat. While hosting Italian Prime Minister Giorgia Meloni, he didn’t shy away from expressing confidence: “We’re going to make a deal. I think we’re going to make a very good deal with China,” he said. Not just once, either. He doubled down on that statement a few times, making it clear he’s betting big on diplomacy.
Oh, and he also said he’s “very confident” that a similar trade deal could be hammered out with the European Union, too. So, clearly, there’s a lot on the trade front right now.
High Stakes and Big Warnings
The White House is holding firm that the tariff hikes are just a reaction to China’s “retaliatory actions.” But not everyone’s convinced this path is the best one. JPMorgan CEO Jamie Dimon has already urged the administration to take a more measured approach, warning that letting this turn into a full-on trade war could end up doing serious damage to the U.S. economy.
Whether this ends with handshakes or more tariffs remains to be seen—but one thing’s clear: both sides are playing hardball, and the stakes just keep rising.
