US-China Trade Tensions Escalate Further Amid Trump's Tariff Shift and Malaysia's Mediation Role

Published on 4.23.25

  The White House's call for Beijing to take the lead in negotiations suggests a shift in strategy, with Karoline Leavitt's statement implying that the US is waiting for China to make the first move. The US has imposed significant tariffs on Chinese goods, including a 145% rate, which has sparked concerns about inflation and recession. In response, Trump paused his tariffs for 90 days, lowering them to 10%, but investors remain hopeful for meaningful negotiations with China to ease global trade tensions and prevent supply chain crises. Neither side has shown willingness to compromise, leading to market volatility, with investors seeking clarity on the future of trade relations between the two nations. The lack of progress in negotiations has led to concerns about inflation and recession, as well as a decline in stock markets, with the Dow and Nasdaq recording their third consecutive losing session. Malaysia's role as a potential mediator is significant, given its chairmanship of Asean this year, but it remains to be seen whether Beijing will accept an invitation from Malaysia or the US to negotiate directly.

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