Donald Trump announced tariffs on China, Canada, and Mexico, which led to retaliatory tariffs from Canada and Mexico. China, however, did not specify tariffs and said it would challenge the tariffs at the World Trade Organization. Trump and Chinese leader Xi Jinping are trying to reach a good relationship and avoid imposing tariffs. China's response is seen as strategic, as they historically respond to US tariffs with precision rather than broad retaliation. China's GDP is $19 trillion, making them in a stronger negotiating position than Canada or Mexico. The Peterson Institute for Economic Affairs estimates that tariffs could harm the US economy and China's economy. Chinese policymakers believe the tariffs will harm the US more than China. China may propose reviving a trade deal from 2020, where they agreed to buy $200 billion worth of US goods over two years. This deal was disrupted by the COVID-19 pandemic, and China only fulfilled 58 percent of its obligations. A similar deal could be the end goal for the US and China to improve relations. Overall, the trade situation between the US and China is complex, with both countries trying to negotiate a deal that benefits both economies. China's response to tariffs is strategic, and they aim to follow global trade rules while protecting their interests. The future of US-China trade relations remains uncertain, with both sides looking for a way to improve their economic ties.