Tariffs, diplomacy, mistrust

Beijing is trying to lock in a steadier relationship with Washington before a Trump-Xi summit set for May 14-15 in Beijing, even as a new Iran dispute has deepened mistrust. (cnbc.com) The trade pressure has not eased. A White House fact sheet in January said the administration was taking Section 232 action on semiconductors, chipmaking equipment and related products, after a Commerce Department investigation found imports threatened U.S. national security. (whitehouse.gov) The Federal Register notice published on January 20 said the president could impose “significant tariffs” on semiconductors and derivative products, while a separate U.S. Trade Representative filing set a 25% duty from January on certain semiconductor-related re-exports to China. (federalregister.gov) (ustr.gov) Beijing has spent weeks signaling that it wants predictability more than a reset. Reuters reported on April 6 that Chinese officials were preparing for Trump’s first trip to China in eight years with trade tensions still high after a year of broad U.S. tariffs. (usnews.com) Then the Iran crisis cut across the diplomacy. Trump said this week that U.S. forces intercepted an Iranian-flagged vessel and suggested it carried a “gift from China,” while Beijing called the accusation fabricated and said it had complied with its international obligations. (thehindubusinessline.com) (channelnewsasia.com) China’s public line on Iran has been to press for de-escalation. Foreign Minister Wang Yi said in March that sovereignty should be respected and force should not be abused in dealing with Iran and the Gulf. (fmprc.gov.cn) The tariff fight is also reaching beyond the two capitals. An Observer Research Foundation analysis published April 23 said new U.S. tariffs on Southeast Asian countries, followed by a U.S.-China trade truce, were adding economic pressure and strategic uncertainty across the region. (orfonline.org) That matters for chips because Southeast Asia sits inside the supply chain for assembly, testing and transshipment. The same analysis said the tariff swings could disrupt production networks as countries in the region try to balance trade ties with China against security ties with the United States. (orfonline.org) Washington and Beijing did strike a trade and economic deal in November 2025, according to the Office of the United States Trade Representative, but the January semiconductor actions showed tariffs were still central to U.S. leverage. (ustr.gov) (whitehouse.gov) So the May meeting is arriving with two tracks running at once: a scheduled summit in Beijing and an active dispute over Iran, chips and trust. The dates are fixed; the terms of the relationship are not. (cnbc.com) (thehindubusinessline.com)