China and the USA: No real peace in the trade dispute

The news that the US is lowering its tariffs on goods from China sounds like a sign of easing tensions in the trade dispute between the two countries. In reality, however, the announced measure only affects a small portion of the existing tariffs and does nothing to change the fundamental tensions between Washington and Beijing. Companies like Apple, which are heavily integrated into global supply chains, cannot therefore expect lasting relief. Economic relations between the US and China remain complex, and tariff policy remains a tool of power on both sides.

China plays a central role in the global economy – as a production location, sales market, and geopolitical rival of the US. When new tariff decisions are made in Washington, they almost always have global repercussions. The recent announcement to halve certain Chinese tariffs is therefore attracting attention. But behind this diplomatic gesture lies primarily a tactical maneuver. The reduction only applies to individual measures from the summer of 2025, not to the "reciprocal" tariffs that were already introduced in April and have become a burden for many US companies.

A ceasefire with limited effect

On Thursday, the US government announced it would halve tariffs on some Chinese goods. However, this decision applies only to tariffs imposed in the summer of 2025 as part of the trade disputes at that time. The much broader reciprocal tariffs from April remain in place.

Following a $100 billion investment in the US, Apple has secured a partial exemption from future semiconductor tariffs – but only temporarily. The existing tariffs remain in place, and the new truce between the US and China has no bearing on this.

The agreement between Trump and Xi Jinping

According to the New York Times, Donald Trump and Chinese President Xi Jinping have agreed to halve the tariffs on fentanyl that were announced this summer. In return, China has pledged to suspend its export restrictions on rare earth metals for one year. These raw materials are crucial for many high-tech products, including smartphones, computer chips, and electric cars.

Semiconductors remain a controversial topic.

Following the talks, Donald Trump stated that he and Xi Jinping had discussed possible tariffs on semiconductors. These tariffs have been under discussion for months but have not yet been implemented. Trump repeatedly emphasized that they could be introduced "very soon." However, no concrete details were provided regarding when this would actually happen.

Furthermore, Trump suggested that the US chipmaker Nvidia might be allowed to sell AI processors to China again – but only under US government supervision. The United States intends to act as an arbiter in all agreements between China and US technology companies. However, the official Chinese statement following the talks makes no mention of such points. This indicates that no binding agreement on semiconductors was reached.

Consequences for Apple and other US companies

The halving of tariffs on fentanyl offers no direct benefits for Apple. The current negotiations were primarily aimed at extending a suspension of certain tariffs imposed by Trump until November 10th. During this suspension, Apple and other companies benefited from lower import duties. Without this measure, Apple would have had to pay roughly 50 times higher tariffs than it would have in March 2025.

The financial impact is still significant. Despite the temporary relief, Apple still had to pay high tariffs during the iPhone 17 launch – roughly ten times what it paid before the reciprocal tariffs. CEO Tim Cook estimated the additional costs for the company at up to two billion US dollars by the end of the September quarter. The final quarterly report is scheduled for release on October 30, 2025, which is today.

A look at the overall situation

Current tariff policies demonstrate that the economic decoupling between the US and China is continuing. Both countries are increasingly using trade as a political tool. For companies that rely on international supply chains, this means uncertainty. Even if there are temporary relief measures, the risk remains that new measures will be imposed at short notice.

The decision to lower tariffs on certain Chinese goods therefore does little to change the underlying problem. It acts as a short-term easing of the trade dispute without resolving the structural tensions. As long as the US and China use their economic relationship as a strategic instrument of power, any détente will only be temporary.

No end in sight to the trade conflict between the US and China

Halving some Chinese tariffs is less a sign of genuine de-escalation than a tactical move in the ongoing trade conflict. The impact on large US corporations like Apple remains limited, and the existing reciprocal tariffs continue to impose significant costs. China remains one of the US's most important, yet also most challenging, trading partners.

Recent negotiations demonstrate the close intertwining of economic interests and political power struggles. For the global economy, this means continued uncertainty – and for companies, the need to adapt to rapid changes of course. As long as there is no long-term agreement between Washington and Beijing, the Chinese tariffs will remain a symbol of the fragile balance between cooperation and competition. (Image: Shutterstock / MDV Edwards)