Trump turns tariff war into high-stakes showdown with China

By pausing global tariffs against dozens of countries and raising them on China, President Trump has set up a high-stakes showdown in hopes he can pressure Beijing into a face-saving deal after weeks of global turmoil.

- Lingling Wei, Alex Leary & Jared Malsin

There is little sign so far, though, that Chinese leader Xi Jinping is ready to buckle.

Trump announced Wednesday on social media that tariffs on Chinese goods would jump to 125%, saying "hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other countries, is no longer sustainable or acceptable." So far, Beijing has hit back at each round of tariff increases from the U.S. by raising duties on American products and targeting U.S. companies.

The clash likely means higher costs for U.S. consumers and locks the world's two largest economies in an extraordinary conflict with no immediately clear offramps.

For Trump, the decision to pause the bulk of his reciprocal-tariff program underscored his growing concern about the economy. But by escalating against China, he has avoided a full retreat from his tariff policies, making it even harder to back down against the last remaining target, analysts said.

"I think the Chinese appreciate that and they are more and more suspicious that negotiating will help them. Trump has to have a win on China," said Derek Scissors, a senior fellow at the American Enterprise Institute.

For Xi, caving to the U.S. under such pressure is a nonstarter, say people who consult with senior Chinese officials.

The Chinese leader will continue to respond to Trump's escalations with a bare-knuckle approach that makes a prolonged fight even more likely.