China’s response to the latest round of tariffs announced by the United States was subdued, signaling a potential easing in tensions after a period of escalating trade disputes. On Friday, the U.S. administration imposed tariffs averaging 12.5 percent on Chinese goods, significantly lower than the previous threats of tariffs reaching as high as 145 percent. This marked a de-escalation compared to the earlier phases of the trade war that began under the Trump administration.

Overall, the weighted average tariff on Chinese imports from the U.S. currently stands at approximately 23.1 percent. This rate remains lower than the tariff levels imposed by some other countries, such as Brazil and Canada. The recent tariffs replaced an expiring global 10 percent tariff and were part of broader U.S. efforts to address alleged unfair trade practices and labor rights concerns, targeting over 80 trading partners.

Trade negotiators from the two countries had previously agreed to limit further tariff increases to around 20 percent during discussions held last year in Kuala Lumpur, Malaysia. This agreement was later formalized in a handshake deal between China’s President Xi Jinping and U.S. President Donald Trump in South Korea. Chinese officials, as well as analysts at Guojin Securities in Chengdu, have indicated that the new tariffs will have a limited immediate economic impact.

China’s official response remained measured. A spokesperson for the Chinese foreign ministry reiterated opposition to unilateral tariffs but did not explicitly address whether China would impose retaliatory measures. Meanwhile, Chinese state media criticized the U.S. approach, describing it as “America’s never-ending tariffs” and accusing Washington of abusing tariff powers.

Tensions around trade have included other measures beyond tariffs. The U.S. administration has cited Section 301 of the Trade Act of 1974 to justify duties on foreign goods due to unfair trade practices or forced labor concerns. More tariffs targeting manufacturing sectors in several countries, including China, are reportedly under consideration.

Despite the ongoing friction, recent interactions between the two leaders suggest a degree of caution. During talks in Beijing in May, President Trump stated that tariffs were not a topic of discussion, though China’s commerce ministry disputed that claim, insisting that in-depth conversations on tariffs had occurred and urging the U.S. to honor previously agreed limits.

Experts suggest that China is seeking to establish a boundary on tariff escalation after a year of tit-for-tat measures, including controls on rare earth exports—a critical resource in global manufacturing and defense industries where China holds a dominant position.

“My personal understanding is that during the remainder of Trump’s term, there probably won’t be sharp, comprehensive tariff increases again,” said Tu Xinquan, dean of the China WTO Institute at the University of International Business and Economics in Beijing. The trade relationship between the world’s two largest economies remains complex but appears to be stabilizing for the near term.