In recent decades, the trade between the US and China has grown enormously. Currently, China is one of the largest export destinations for US goods and services and vice versa. The development came after China joined the World Trade Organisation (WTO) in 2001. However, this trade development has brought the loss of American jobs due to import competition, automation, and multinational companies moving manufacturing overseas.&nbsp;Meanwhile, economic tensions between Washington and Beijing have significantly risen over the past 20 years after the US policymakers formulated a progressively assertive course toward China. The development has gone against some of its WTO commitments and taken advantage of gaps in the rules. When China joined the World Trade Organisation, many believed it would gradually become more open, evolve into a freer society, and scale back state control over its economy. However, those anticipated reforms never came to fruition.&nbsp;Trade tensions between the United States and China sharply worsened during President Donald Trump’s first term in 2018, when tariffs triggered a major trade war. Although both sides later signed the Phase One trade deal, many tariffs remained. President Joe Biden retained and expanded several restrictions, particularly on semiconductor exports. In Trump’s second term, tensions escalated further as China imposed export controls on rare-earth minerals. Despite a February 2026 Supreme Court ruling limiting some tariffs, most remain active. A planned meeting between Trump and Chinese President Xi Jinping was postponed to May.<h3>Trade war timeline between the United States and China:</h3><h3>Pre-Trade War: Integration and Growth (1979–2016)</h3>1979: The US and China normalise relations as China seeks to boost international trade and investment under Deng Xiaoping.&nbsp;1986: Beijing formally applies to rejoin the General Agreement on Tariffs and Trade (the predecessor to the WTO).&nbsp;2000–2007: Increased trade with China boosts the annual purchasing power of the average US household by $1,500.&nbsp;December 2001: China officially joins the WTO, committing to economic reforms, tariff cuts, and IP protection. US imports from China sit at approximately $100 billion.&nbsp;The George W. Bush Administration has responded to "dumping" and subsidies the US imposes tariffs on specific Chinese goods and launching high-level trade dialogues. In addition, the Barack Obama Administration has also continued dialogues and uses safeguards to impose tariffs on Chinese tyres. Obama blocks two Chinese acquisitions on national security grounds and negotiates the Trans-Pacific Partnership (TPP) to contain China's trade influence.<h3>The Trump Era: Outbreak of the Trade War (2017–2020)</h3>2017: President Trump withdrew the U.S. from the TPP shortly after taking office.&nbsp;2018: The Trade War begins reaching at the highest point. With the trade deficit hitting a record $377 billion, Trump imposed tariffs on hundreds of billions of dollars worth of solar panels/washing machines and 25 per cent on steel. China retaliates with duties on 128 products, including pork and aluminium.&nbsp;2018 (July–Sept): The trade war goes "all-in." The US imposes 25 per cent tariffs on $50 billion of goods, followed by 10 per cent on $200 billion more. China responds by targeting US soybeans and automobiles.&nbsp;2019: Tariffs on the $200 billion list are raised to 25 per cent. Global markets face extreme volatility.<h3>The "Phase One" Truce (2020–2021)</h3>January 2020: The Phase One Deal was signed. China agrees to buy an additional $200 billion in US goods and services over two years.&nbsp;2020–2021: Due to COVID-19 and logistics disruptions, China only purchased about 58 per cent of the committed amount. The US maintains most tariffs.<h3>The Tech-War &amp; "De-risking" (2022–2024)</h3>The Biden administration shifts the focus from simple trade volumes to national security and high-tech dominance after passing the CHIPS and Science Act in 2022, restricting advanced semiconductor exports to China.&nbsp;2023: The US deficit with China begins to shrink as trade is rerouted through Mexico and Vietnam (often called "near-shoring" or "friend-shoring").&nbsp;2024 (May): Biden significantly escalates specific tariffs on Electric Vehicles (EVs) to 100 per cent, &nbsp;Solar Cells to 50 per cent, Semiconductors to 50 per cent and Steel/Aluminum to 25 per cent.<h3>Radical Escalation &amp; The "Busan Truce" (2025–2026)</h3>The second Trump administration (beginning Jan 2025) launched a massive new wave of protectionism.&nbsp;January 2025: Trump imposes a blanket 145 per cent tariff on nearly all Chinese imports. China retaliates with a 125% tariff on American goods, essentially halting US agricultural exports.&nbsp;October 2025: Following a market crash and global supply chain panic, the two leaders meet in Busan, South Korea. They negotiate a one-year "Busan Truce," lowering US tariffs on Chinese imports from 57 per cent to 47 per cent to stabilise the global economy.&nbsp;Early 2026: Despite the truce, US-China trade continues to decline. Bilateral trade fell by 11% year-on-year in early 2026.&nbsp;Also read: <a href="https://www.wionews.com/world/iran-backs-xi-jinping-s-four-point-proposal-ahead-of-trump-s-china-visit-1778581011682">Iran backs Xi Jinping’s four-point proposal ahead of Trump’s China visit</a>

After China joined the WTO, it was believed that trade would gradually become more open, evolve into a freer society, and scale back state control over its economy. However, those anticipated reforms never came to fruition.

In recent decades, the trade between the US and China has grown enormously. Currently, China is one of the largest export destinations for US goods and services and vice versa. The development came after China joined the World Trade Organisation (WTO) in 2001. However, this trade development has brought the loss of American jobs due to import competition, automation, and multinational companies moving manufacturing overseas. Meanwhile, economic tensions between Washington and Beijing have significantly risen over the past 20 years after the US policymakers formulated a progressively assertive course toward China. The development has gone against some of its WTO commitments and taken advantage of gaps in the rules. When China joined the World Trade Organisation, many believed it would gradually become more open, evolve into a freer society, and scale back state control over its economy. However, those anticipated reforms never came to fruition. Trade tensions between the United States and China sharply worsened during President Donald Trump’s first term in 2018, when tariffs triggered a major trade war. Although both sides later signed the Phase One trade deal, many tariffs remained. President Joe Biden retained and expanded several restrictions, particularly on semiconductor exports. In Trump’s second term, tensions escalated further as China imposed export controls on rare-earth minerals. Despite a February 2026 Supreme Court ruling limiting some tariffs, most remain active. A planned meeting between Trump and Chinese President Xi Jinping was postponed to May. Trade war timeline between the United States and China: Pre-Trade War: Integration and Growth (1979–2016) 1979: The US and China normalise relations as China seeks to boost international trade and investment under Deng Xiaoping. 1986: Beijing formally applies to rejoin the General Agreement on Tariffs and Trade (the predecessor to the WTO). 2000–2007: Increased trade with China boosts the annual purchasing power of the average US household by $1,500. December 2001: China officially joins the WTO, committing to economic reforms, tariff cuts, and IP protection. US imports from China sit at approximately $100 billion. The George W. Bush Administration has responded to "dumping" and subsidies the US imposes tariffs on specific Chinese goods and launching high-level trade dialogues. In addition, the Barack Obama Administration has also continued dialogues and uses safeguards to impose tariffs on Chinese tyres. Obama blocks two Chinese acquisitions on national security grounds and negotiates the Trans-Pacific Partnership (TPP) to contain China's trade influence. The Trump Era: Outbreak of the Trade War (2017–2020) 2017: President Trump withdrew the U.S. from the TPP shortly after taking office. 2018: The Trade War begins reaching at the highest point. With the trade deficit hitting a record $377 billion, Trump imposed tariffs on hundreds of billions of dollars worth of solar panels/washing machines and 25 per cent on steel. China retaliates with duties on 128 products, including pork and aluminium. 2018 (July–Sept): The trade war goes "all-in." The US imposes 25 per cent tariffs on $50 billion of goods, followed by 10 per cent on $200 billion more. China responds by targeting US soybeans and automobiles. 2019: Tariffs on the $200 billion list are raised to 25 per cent. Global markets face extreme volatility. The "Phase One" Truce (2020–2021) January 2020: The Phase One Deal was signed. China agrees to buy an additional $200 billion in US goods and services over two years. 2020–2021: Due to COVID-19 and logistics disruptions, China only purchased about 58 per cent of the committed amount. The US maintains most tariffs. The Tech-War & "De-risking" (2022–2024) The Biden administration shifts the focus from simple trade volumes to national security and high-tech dominance after passing the CHIPS and Science Act in 2022, restricting advanced semiconductor exports to China. 2023: The US deficit with China begins to shrink as trade is rerouted through Mexico and Vietnam (often called "near-shoring" or "friend-shoring"). 2024 (May): Biden significantly escalates specific tariffs on Electric Vehicles (EVs) to 100 per cent, Solar Cells to 50 per cent, Semiconductors to 50 per cent and Steel/Aluminum to 25 per cent. Radical Escalation & The "Busan Truce" (2025–2026) The second Trump administration (beginning Jan 2025) launched a massive new wave of protectionism. January 2025: Trump imposes a blanket 145 per cent tariff on nearly all Chinese imports. China retaliates with a 125% tariff on American goods, essentially halting US agricultural exports. October 2025: Following a market crash and global supply chain panic, the two leaders meet in Busan, South Korea. They negotiate a one-year "Busan Truce," lowering US tariffs on Chinese imports from 57 per cent to 47 per cent to stabilise the global economy. Early 2026: Despite the truce, US-China trade continues to decline. Bilateral trade fell by 11% year-on-year in early 2026. Also read: Iran backs Xi Jinping’s four-point proposal ahead of Trump’s China visit

After China joined the WTO, it was believed that trade would gradually become more open, evolve into a freer society, and scale back state control over its economy. However, those anticipated reforms never came to fruition.

Years of tensions: The complete timeline of the US-China trade conflict

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Years of tensions: The complete timeline of the US-China trade conflict