Politics
Here’s how China agreed to come to the table on Trump’s tariffs – National TenX News
Since U.S. President Donald Trump imposed steep tariffs on China last month, Beijing has responded in kind. On state and social media, it posted images of Mao Zedong, lambasted “imperialists,” and sent a message: capitulation to bullies is dangerous, and it wouldn’t back down.
But behind closed doors, Chinese officials have grown increasingly alarmed about tariffs’ impact on the economy and the risk of isolation as China’s trading partners have started negotiating deals with Washington, according to three officials familiar with Beijing’s thinking.
These factors, along with outreach by the U.S. and an easing of Trump’s rhetoric, persuaded Beijing to send its economic tsar He Lifeng for meetings with U.S. counterparts in Switzerland this weekend, the officials told Reuters.
Re-engagement was complicated by the fractious nature of U.S.-China diplomacy. In particular, Beijing considered a letter the U.S. side sent to Chinese ministries in late April about fentanyl “arrogant,” two officials said. Efforts to arrange talks were further impaired by disagreements over which officials should be involved, said one of these people and another official.
China’s reasons for deciding to negotiate, Washington’s letter on fentanyl, U.S. diplomatic challenges in Beijing, and the early outreach between the two sides are reported by Reuters for the first time, based on interviews with nearly a dozen government officials and experts on both sides. Most of the people were granted anonymity to discuss non-public information.
China’s foreign ministry said in a statement to Reuters that it reiterated that “China’s firm opposition to the U.S. abuse of tariffs is consistent and clear, and there is no change.”
“The U.S. has ignored China’s goodwill and unreasonably imposed tariffs on China under the pretext of fentanyl. This is a typical act of bullying, which seriously undermines dialog and cooperation between the two sides in the field of drug control.”
China’s State Council and ministry of commerce didn’t immediately respond to faxed requests for comment. The White House and State Department also didn’t respond to Reuters questions about the lead-up to the Geneva talks.
China’s Vice Foreign Minister Hua Chunying said on Friday that China has full confidence in its ability to manage U.S. trade issues, adding that the Trump administration’s approach cannot be sustained.
The trade war between the world’s two largest economies, combined with Trump’s decision last month to impose duties on dozens of other countries, has disrupted supply chains, unsettled financial markets and stoked fears of a sharp downturn in global growth.
Chinese export restrictions, meanwhile, have squeezed the supply of critical minerals the U.S. needs for weapons, electronics and consumer goods. Trump’s approval ratings are falling due to his handling of tariffs and the economy.
The volatile run-up to the Geneva talks underscores the deep mistrust and divergent negotiating styles between the Trump team and China, which could make for protracted and fraught discussions.
“Both sides I think are balancing trying to look tough with not wanting to be responsible for sinking the global economy,” said Scott Kennedy, an expert in Chinese business affairs at the Center for Strategic and International Studies in Washington.
“The Chinese set a high bar for these talks, but it became increasingly clear that the Trump administration wanted to talk, and they couldn’t say no forever. So, they’ve accepted what are probably best seen as pre-negotiations in Geneva.”
After Trump’s tariff salvo last month, China took a hard line in its public messaging. Beijing posted footage on its official social media feeds of a Chinese MiG-15 fighter shooting down a U.S. jet in the Korean War, with commentary: “China won’t kneel down, because we know standing up for ourselves keeps the possibility of cooperation alive, while compromise snuffs it out.”
The tone began to shift on April 30, when a state media-affiliated blog said the U.S. had “proactively reached out to China through multiple channels, hoping to discuss tariffs.”
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CSIS’s Kennedy said contacts between Chinese agencies, Beijing’s embassy in Washington and the Trump administration had been increasing in frequency in recent weeks. Some in-person interactions took place at the International Monetary Fund and World Bank meetings in late April, including with Treasury Secretary Scott Bessent, which paved the way for the Swiss meeting, said Kennedy.
After Trump’s “Liberation Day” tariffs, Chinese Commerce Minister Wang Wentao quietly reached out to his U.S. counterpart, Howard Lutnick, but was rebuffed as not senior enough, according to one official familiar with the exchanges.
Trump has been pushing for direct talks with Chinese President Xi Jinping. But China has rejected that idea as not in keeping with its traditional approach of working out the details first before the leaders sign any deal, according to public statements by both sides.
Another significant factor for China was Trump’s public berating of Ukrainian President Volodymyr Zelenskiy in February, said one of the sources, adding that any unscripted hostile interaction between the U.S. and Chinese leaders would represent an unacceptable loss of face for Xi.
As messaging on both sides grew more conciliatory, China decided to put forward its vice premier and Xi confidant He Lifeng, whose direct predecessor struck the “Phase One” trade deal with the U.S. in 2019.
The move satisfied Washington’s demands for substantive talks with a senior official with direct access to Xi, but avoided exposing the Chinese leader to potential embarrassment, said one of the sources.
As for the choice of venue, the Swiss foreign ministry said that “during its recent contacts in Washington and Beijing, Switzerland expressed to the U.S. and Chinese authorities its willingness to organize a meeting between the two parties in Geneva.”
Among the main drivers of Beijing’s climb-down were internal signals that Chinese companies were struggling to avoid bankruptcies and to replace the U.S. market, three people familiar with the Chinese government’s thinking said.
Some areas feeling immediate impact were furniture and toy makers, as well as textiles, said one of the officials.
U.S. diplomats in China have also been closely monitoring factory closures, strikes, and job losses in the industrial heartland in southern China.
Many analysts have downgraded their 2025 economic growth forecasts for China, and investment bank Nomura has warned the trade war could cost it up to 16 million jobs. China’s central bank this week announced fresh monetary stimulus.
One of the officials said Chinese companies were struggling to replace the U.S. market because developing nations cannot buy as many items, and that for many firms this was an existential threat that needed to be resolved in days or weeks.
In addition, Beijing was worried it was left without a place at the negotiating table while its major trading partners, such as Vietnam, India and Japan, began talks with Washington, said two officials familiar with Beijing’s thinking.
In a warning to the countries negotiating with the U.S., China’s commerce ministry said in a statement this week that “appeasement cannot bring peace, compromise cannot be respected, and adhering to principled positions and upholding fairness and justice is the right way to safeguard one’s own interests.”
As part of the push to counter the U.S., China is sending its Premier Li Qiang to Malaysia in late May for a summit with a newly established group of Southeast Asian and Arab nations, two sources told Reuters.
A regional diplomat based in Beijing told Reuters China’s message to Southeast Asia was “We will buy stuff from you.”
In Geneva, Beijing appears to have modest expectations.
Internally, China has downgraded the talks from a higher level to merely a meeting, reflecting its view that the discussions will be mostly about finding out Washington’s demands and red lines after weeks of contradictory messages by Trump and other senior U.S. officials, according to a person familiar with the matter.
Still, one official said China could draw on its extensive toolbox and follow Asian neighbors in offering to buy more American liquefied natural gas.
On the table may also be purchases of agricultural goods, similar to the 2019 “Phase One” deal during Trump’s first term. At the time, Beijing said it would increase purchases of U.S. agricultural products by US$32 billion over two years.
While other matters like the U.S.’s axing of the “de minimis” exemption for packages under US$800 from China and the sale of TikTok are also likely to play a part in the broader talks, Chinese officials said they do not expect them to play a central role this weekend.
Even before triggering the broader trade war, Trump imposed a 20 per cent tariff on Chinese goods, saying Beijing wasn’t doing enough to counter the flow of chemicals used to produce the deadly drug fentanyl.
One of the moves that complicated the rapprochement, according to two officials, was a letter sent by the U.S. to China in late April that outlined the steps Trump wanted Beijing to take on fentanyl.
The document, reviewed by Reuters, caused friction with Beijing because it referenced a congressional report that asserted China, through value-added tax rebates for exporters, directly subsidizes production of fentanyl precursors for sale abroad. China denies it does so.
The letter, sent to the ministries of foreign affairs, commerce, and public security, called on Beijing to publicize the crackdown on fentanyl precursors on the front page of the Communist Party mouthpiece People’s Daily; send a similar message through “internal party channels” to party members; tighten regulation of some specified chemicals; and deepen law-enforcement cooperation.
Two officials familiar with China’s reaction said it found especially the first two points “arrogant” because Beijing saw it as the U.S. dictating what China should do within its ruling apparatus.
One said fentanyl would feature in the Geneva talks and that the U.S. government’s opening position would be to present the four points to China.
A U.S. official familiar with the letter said the Trump administration simply wanted China to curb the flow of fentanyl precursors to drug cartels.
Complicating the negotiations, Trump’s Washington team has frozen out many U.S. embassy officials responsible for earlier contacts with Chinese counterparts, two people familiar with the matter said.
Trump’s new ambassador to China, David Perdue, is slated to arrive in Beijing next week, but Deputy Chief of Mission Sarah Beran, who served as a senior official on China in the Biden administration’s National Security Council, was removed from her post this week, the two officials said.
The turmoil has resulted in lack of internal consultations on demands put forward by the American side, the officials said. An official familiar with Chinese thinking said there had been minimal contact with the U.S. embassy ahead of the Geneva talks.
World leaders are raising alarm after U.S. President Donald Trump threatened to impose sweeping tariffs on European allies in an effort to pressure Denmark into negotiations over Greenland.
The move is sparking protests across the Arctic and sharp rebukes from Europe and Canada.
On Saturday, thousands of people marched through snow and ice in Greenland’s capital, Nuuk, chanting “Greenland is not for sale,” waving national flags.
Police described the demonstration as the largest they have ever seen in the city.
About 825 kilometres away, dozens of people rallied in Iqaluit, Nunavut, in a show of solidarity with Greenlanders.
“Greenland is owned by the Greenlandic people,” protesters chanted in Inuktut as they marched for an hour in freezing, windy conditions.
The protests came as Trump announced he would impose a 10 per cent import tax starting next month on goods from eight European countries.
These nations include Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland, because of their opposition to U.S. control of Greenland.
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The tariff would rise to 25 per cent on June 1 if no deal was reached for what Trump called the “Complete and Total purchase of Greenland.”
The president suggested the tariffs were leveraged to force talks over Greenland, a semi-autonomous territory of NATO ally Denmark that Trump says is vital to U.S. national security.
French President Emmanuel Macron said France stands firmly behind Greenland’s sovereignty and rejected the use of trade threats.
“Tariff threats are unacceptable and have no place in this context,” Macron wrote on social media, adding that Europeans would respond “in a united and coordinated manner” if the measures are confirmed.
British Prime Minister Keir Starmer said Greenland’s future is for Greenlanders and Denmark to decide.
“Applying tariffs on allies for pursuing the collective security of NATO allies is completely wrong,” Starmer said, adding the issue would be raised directly with the U.S. administration.
Bob Rae, former Canadian ambassador to the United Nations, also chimed in on Trump’s announcement.
The tariff threat could mark a significant rupture between the U.S. and its NATO allies.
Greenland already hosts the U.S.-run Pituffik Space Base under a 1951 defence agreement with Denmark, supporting missile warning, missile defence and space surveillance for the U.S. and NATO.
“There is no sign of the Trump war of aggression against Greenland and Denmark letting up. It is not about ‘security’ any more than Venezuela was about ‘narco-terrorism.’ They are both about seizing control and plunder.”
He further added, “No country, including my own, Canada, is safe or secure.”
The tariff threat could mark a significant rupture between the U.S. and its NATO allies.
Trump is expected to face questions about the proposed tariffs and Greenland later this week.
He is scheduled to attend the World Economic Forum in Davos, alongside several European leaders he has threatened with tariffs.
— With files from The Canadian Press
© 2026 Global News, a division of Corus Entertainment Inc.
Prime Minister Mark Carney arrived in Doha on Saturday as part of a push to attract foreign investment and deepen Canada’s economic partnerships beyond its traditional allies.
Carney’s visit comes on the heels of his visit to China and follows the recent presentation of a new federal investment budget aimed at positioning Canada as a stable, attractive destination for global capital.
In a news conference on Saturday, Finance Minister François-Philippe Champagne said Canada is working to broaden its economic relationships as global trade patterns shift.
Qatar is viewed by Ottawa as a strategic partner, with officials pointing to the country’s significant investment capacity and growing influence on the global stage.
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“We need to reduce our dependence and increase our self-reliance to find a strategic path forward,” Champagne said.
“Engaging with the Middle East and China is necessary for Canada, just like our European partners have done,” Champagne added. “We buy more from the U.S.A. than anywhere else, but the trading climate right now is different.”
The conference highlighted Canada’s industrial capacity and trade advantages as key selling points for potential investors.
Champagne also said international engagement is critical as Canada works to raise its profile among global investors.
“We are one of the G7s with very big industries. We build cars, planes, ships, we have an abundance of energy, and we are the only one with free trade with all G7,” Champagne said. “With the way the world is changing, you better diversify, supply chain is changing and we need to adapt.”
Prime Minister Carney is expected to meet with senior Qatari officials, including Emir Sheikh Tamim bin Hamad Al Thani, as well as representatives of the Qatar Investment Authority.
His office says the talks will focus on expanding trade access and forging partnerships in artificial intelligence, infrastructure, energy and defence.
The visit comes amid heightened geopolitical tensions in the region, though officials say the schedule remains unchanged.
© 2026 Global News, a division of Corus Entertainment Inc.
The possibility of a forceful U.S. takeover of Greenland is raising many unprecedented questions — including how Canada, the European Union and NATO could respond or even retaliate against an ostensible ally.
A high-level meeting between Greenlandic, Danish and U.S. officials this week did not resolve the “fundamental disagreement” over the territory’s sovereignty but did set the stage for more talks. The White House made clear Thursday that U.S. President Donald Trump’s desire to control Greenland has not changed after the meeting.
“He wants the United States to acquire Greenland. He thinks it’s in our best national security to do that,” White House press secretary Karoline Leavitt said.
Denmark and European allies are sending more troops to the territory in a show of force and to display a commitment to Arctic security.
Experts say there are other, non-military measures available in the event of a U.S. annexation or invasion of Greenland, or which could at least be threatened to try and get Trump to back down.
Whether those economic measures are actually used is another matter, those experts say.
“I think it remains highly unlikely that we’ll get to that point where we have to seriously discuss consequences for a U.S. move on Greenland,” said Otto Svendsen, an associate fellow with the Europe, Russia, and Eurasia Program at the Center for Strategic and International Studies.
“So it remains contingency planning for a highly unlikely event. That being said … Denmark would certainly do everything in its power to rally a very robust European response.”
Here’s what that could entail.
EU trade, tech disruptions?
Experts agree the biggest pressure points that can be used in the U.S. surround trade and technology.
The European Parliament’s trade committee is currently debating whether to postpone implementing the trade deal signed between Trump and the EU last summer to protest the threats against Greenland, Reuters reported Wednesday.
Many lawmakers have complained that the deal is lopsided, with the EU required to cut most import duties while the U.S. sticks to a broad 15 per cent tariff for European goods.
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An even bolder move would be triggering the EU’s anti-coercion instrument — known as the “trade bazooka” — that would allow the bloc to hit non-member nations with tariffs, trade restrictions, foreign investment bans, and other penalties if that country is found to be using coercive economic measures.
Although the regulation defines coercion as “measures affecting trade and investment,” Svendsen said it could feasibly be used in a diplomatic or territorial dispute as well.
“EU lawyers have proven themselves to be very creative in recent years,” he said.
However, David Perry, president of the Canadian Global Affairs Institute, said in an email that economic measures against the U.S. are unlikely “given the massive asymmetry in the defence and economic relationship between the U.S.” and other western nations.
“Any kind of sanction against the U.S. doesn’t make sense for the same reason they can impose tariffs on others: they have the power,” Perry added.
Target U.S. tech companies?
The likeliest — and potentially least harmful — scenario for retaliation in the event of an attack on Greenland, Svendsen said, would be fines or bans against U.S. tech companies like Google, Meta and X operating in Europe.
That’s because the Trump administration has taken particular focus on preventing what they call “attacks” on American companies by foreign governments seeking to regulate their online content or tax their revenues, which has led to calls on Canada, Britain and the EU to repeal laws like digital services taxes.
“I think that would be a really smart and targeted way to get to economic interests very close to the president, while minimizing the direct impact on the on the European economy,” Svendsen said, calling such a move “low-hanging fruit.”
He also compared a future U.S. tech platform ban to how Europe moved to wean itself off Russian gas after the full-scale invasion of Ukraine in 2022.
“If you told anyone back then that Europe would basically rid itself of its dependence on Russian gas basically within a two-year period … that would have been considered completely impossible,” he said.
“Weaning the European economy off of U.S. tech would certainly be painful in the short term, but they’ve proven that they can get off those dependencies quickly if there is political will behind it in the past.”
A U.S. hostile takeover of Greenland would mean the “end” of the NATO alliance, experts and European leaders have said.
Trump himself has acknowledged it could be a “choice” between preserving the alliance or acquiring Greenland.
There is no provision within the NATO founding treaty that addresses the possibility of a NATO member taking territory from another, and how the alliance should respond to such an act.
A NATO spokesperson told Global News it wouldn’t “speculate on hypothetical scenarios” when asked how it could potentially act.
“None of this would be actionable in a NATO sense,” Perry said. “It’s an alliance that’s organized to bind the U.S. to European security, and revolves around the U.S. So there’s no scenario of NATO doing that to the U.S.”
Denmark and other European nations could move to reduce or close U.S. military bases in their countries as a possible response, experts say.
Balkan Devlen, a a senior fellow at the Macdonald-Laurier Institute and director of its Transatlantic Program, said in an interview that a U.S. annexation of Greenland would force Canada to focus entirely on boosting its defences in the Arctic.
That may include trying to decouple from NORAD, the joint northern defence network with the U.S., in favour of a purely domestic Arctic command, he said — although that process would take years and require Canada to increase defence spending even further.
“Never mind five per cent (of GDP) — we will probably need to go like seven, eight, nine per cent on defence spending to be able to do anything of that sort,” he said. “It’s not even clear that we’ll be able to have enough people to do that.”
Devlen added that any retaliatory action, whether military or financial, needs to be targeted and proportionate to what the U.S. does.
“The problem with nuclear options is that once you use it, it’s gone,” he said. “And if it doesn’t do the damage or make the change of behaviour on the other party, you’ve basically lost a lot of leverage and you might actually sustain a lot more loss yourself.”
“Unacceptable’: Allies react to Trump Greenland tariff threats – National TenX News
Canada talks trade with Qatar as Carney touches down in Doha – National TenX News
How could Canada, EU, NATO respond to a U.S. takeover of Greenland? – National TenX News
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