US President Donald Trump praised Chinese President Xi Jinping as “one of the smartest people in the world” during remarks at the White House on Wednesday. This came despite escalating tensions over a 125% tariff on Chinese imports. Trump expressed optimism about renewed talks, saying a single phone call from Xi could reopen negotiations. China, meanwhile, responded with strong retaliatory tariffs and warned of a drawn-out economic confrontation.

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• Trump imposed 125% tariff on all Chinese imports, up from 10% earlier.
• China hit back with 84% tariffs on US goods, calling US actions “tariff bullying.”
• Despite this, Trump praised Xi as “world’s smartest,” hinted at deal potential.
• Trump said talks can restart if Xi calls; open to direct negotiation.
• China warned it “will fight to the end” if provoked further by US.
• US relies on Chinese imports like phones, toys; prices expected to spike.
• China less exposed; US exports to China mostly industrial, less consumer impact.
• China diversifying trade; shifted soy imports from US to Brazil since 2018.
• Beijing mulls more countermeasures — drug control, IP probes, film bans.
• Trade war strains diplomacy, economics, and cultural ties between the two powers.