Cooperation and Contention: The Dynamic Relationship Between the United States and China

By Alyssa Hazen, US Policy

The United States and China have one of the world’s most complex relationships. The two countries have experienced periods of tension and cooperation over a range of issues. Key areas of conflict between the two include trade and economic practices. While the US and China have a critical trade relationship, they are also major competitors. The US has cited China’s economic policies as a point of contention, finding that the country’s practices related to trade and labor pose a threat to the United States’ own economic and security interests (US Government Accountability Office). This has led the US to take action against China, primarily through the imposition of tariffs, and China has shown retaliation in return. Despite tensions, the two countries remain economically connected—intertwined in a relationship that is crucial to the global economy.

US Tariffs

Since the inauguration of President Trump under his second term, the administration has made it a priority to impose tariffs on imports from other countries. The Trump administration’s economic policy is designed to protect domestic industries and American workers, address the trade deficit, and raise government revenue. In the first month of his presidency, Trump imposed tariffs using the International Emergency Economic Powers Act (IEEPA). He declared that the threat posed by the flow of illegal immigrants and drugs from Mexico, Canada, and China constituted a national emergency under the act (White House 2025). The administration imposed a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on China (White House 2025). The tariffs were established as a means of holding the countries accountable to their promises on curbing illegal immigration and stopping the flow of drugs into the US. The administration argued that the tariffs are a way to protect the United States’ national interest and security, as well as the safety of American citizens. Trump imposed further tariffs in April. Once again using the IEEPA, Trump declared that foreign trade practices constituted a national emergency. The administration issued a 10% tariff increase on imports from all countries, arguing that this was necessary due to the threat posed by the trade deficit and lack of reciprocity in trade relationships (White House 2025). The administration highlighted China’s non-market policies, in particular, arguing that these policies gave China global dominance. This had repercussions on the US industry and trade deficit, leading to job losses and a national security threat as a result of an increased reliance on foreign supply chains (White House 2025).

During April, the Trump administration’s tariffs caused increasingly more conflict between the US and China. Under US Section 232, a provision in the Trade Expansion Act of 1962, the president can adjust imports that threaten national security. Under this provision, Trump imposed tariffs on steel, aluminum, and automobiles. These tariffs were an effort to counter the flood of these materials from China in global markets (Peterson Institute For International Economics 2025). Following the implementation of these tariffs and those imposed under the IEEPA, US tariffs grew to 145% on all imports from China as of April 11th. In retaliation, China’s tariffs on US imports rose to 125% (Council on Foreign Relations). 

China’s Response

China responded to the United States’ tariffs by means of retaliation. While China imposed tariffs back at the US, its primary mode of retaliation took the form of depriving the US of investment. China, which is dependent on soybean production from other countries, imports three-fifths of soybeans traded in the global market (Bradsher 2025). Since late May, China had been boycotting purchasing soybeans from the United States, in response to Trump’s tariffs. Last year, China had exported $12.6 billion worth of soybeans, but as of late September, this has entirely dropped (Draper 2025). In retaliatory tariffs, the total duties that China imposed on US grown soybeans reached 34% (Rappeport 2025). This has caused a severe strain on American farmers, who are running out of space to store soybeans as well as facing financial struggles as a result of a declining export rate.

In addition to boycotting the purchase of American soybeans, China also deprived the US from investing in its rare earth metals. China curbed exports on rare earth metals in October, in an attempt to claim more control over the manufacture of technology (Bradsher and Tobin 2025). 

Rare earth metals are essential in the production of computer chips, magnets, and the systems in cars. Many major US-based companies, such as Nvidia and Apple rely on the export of these metals to manufacture their products (Bradsher and Tobin 2025). Limiting exports of these rare earth metals would allow China to exploit the dominance it has over this sector and compete with the United States’ leadership in the global technology market.

Deal Making

Both the United States and China threatened to raise tariffs exponentially in the months immediately following Trump’s inauguration, but extended a truce until November to facilitate deal making. In late October, Trump met with China’s President Xi Jinping. The two leaders reached a trade deal that ensured the protection of the United States’ national security and workers, in addition to lower tariffs imposed upon China (White House 2025). Under the deal, China is to suspend export controls on rare earth metals, reduce the flow of drugs into the US, suspend its retaliatory tariffs, and resume exporting American soybeans. In return, the US is to curb tariffs imposed on China and extend the expiration of investigations into China’s unfair trade practices (White House 2025).

Conclusion

The relationship between the United States and China continues to be defined by a balance between economic interdependence and strategic rivalry. Tariff escalations under the Trump administration showcase how quickly tensions can rise when one country’s trade and economic practices are framed as a threat to another’s national security interests. As both nations imposed increasingly severe measures, economic costs mounted on both sides. Yet, despite these tensions, the willingness of both countries to negotiate a deal underscores the importance of cooperation between major world powers in maintaining global stability. While conflict remains a persistent characteristic of the United States’ and China’s relationship, methods of resolution exist when economic interests are at stake for both sides. The United States and China are bound by an interdependent economic system that requires cooperation despite contention.

References

Bradsher, Keith. 2025. “In Tariff Standoff With Trump, China Boycotts American Soybeans.” New York Times. September 4 https://www.nytimes.com/2025/09/04/business/china-soybeans-trump-tariffs.html?searchResultPosition=2 

Bradsher, Keith and Meaghan Tobin. 2025. “China Clamps Down Even Harder on Rare Earths.” New York Times. October 9                 https://www.nytimes.com/2025/10/09/business/china-rare-earth-exports.html 

Council on Foreign Relations. 2025. “U.S.-China Relations.” https://www.cfr.org/timeline/us-china-relations 

Draper, Kevin. 2025. “China Bought $12.6 Billion in U.S. Soybeans Last Year. Now, It’s $0.” New York Times. September 25 https://www.nytimes.com/2025/09/25/business/china-soybean-sales-farmers.html?searchResultPosition=3 

Peterson Institute For International Economics. 2025. “US-China Trade War Tariffs: An Up-to-Date Chart.” November 10 https://www.piie.com/research/piie-charts/2019/us-china-trade-war-tariffs-date-chart 

Rappeport, Alan. 2025. “China’s Snub of U.S. Soybeans Is a Crisis for American Farmers.” New York Times. September 15 https://www.nytimes.com/2025/09/15/business/china-us-soybeans-farming.html?searchResultPosition=4 

The White House. 2025. “Fact Sheet: President Donald J. Trump Imposes Tariffs on Imports from Canada, Mexico and China.” February 1 https://www.whitehouse.gov/fact-sheets/2025/02/fact-sheet-president-donald-j-trump-imposes-tariffs-on-imports-from-canada-mexico-and-china/ 

The White House. 2025. “Fact Sheet: President Donald J. Trump Declares National Emergency to Increase our Competitive Edge, Protect our Sovereignty, and Strengthen our National and Economic Security.” April 2 https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-declares-national-emergency-to-increase-our-competitive-edge-protect-our-sovereignty-and-strengthen-our-national-and-economic-security/ 

The White House. 2025. “Fact Sheet: President Donald J. Trump Strikes Deal on Economic and Trade Relations with China.” November 1 https://www.whitehouse.gov/fact-sheets/2025/11/fact-sheet-president-donald-j-trump-strikes-deal-on-economic-and-trade-relations-with-china/ U.S. Government Accountability Office. “U.S. – China Relations.” https://www.gao.gov/u.s.-china-relations