The ongoing trade tensions between the United States and China have taken a new turn, with aircraft spare parts emerging as a bargaining chip in the economic battle between the two nations. The relationship between the US and China has been strained for years, with issues ranging from trade and technology to tariffs and national security. The tension escalated in 2018, during Donald Trump's presidency, when the US imposed tariffs on Chinese imports.
In July 2018, the US imposed its first major tariffs on Chinese imports under Section 301 of the Trade Act, accusing China of unfair trade practices. China retaliated with tariffs of its own, and by September 2018, the US had imposed another round of tariffs covering thousands of Chinese products. Beijing responded with its own tariffs on American goods, marking the beginning of the US-China trade war. The dispute has since evolved to include technology and strategic industries.
The trade war intensified in May 2019, when the US increased tariffs from 10% to 25% on about $200 billion worth of Chinese goods. China announced retaliatory tariffs on American products, and the US also restricted Chinese technology company Huawei, citing national-security concerns. The US Commerce Department placed Huawei on its Entity List, restricting its access to American technology without government approval.
The Phase One trade agreement in January 2020 temporarily reduced some of the tensions, but did not resolve the deeper disagreements between Washington and Beijing. During President Joe Biden's administration, many of the Trump-era tariffs remained, while Washington expanded restrictions on China's access to advanced semiconductor technology. The US-China trade war has continued to escalate, with both sides imposing and adjusting tariffs and export controls.
Rare earth minerals have become a critical piece of the puzzle in the US-China trade war. China is a dominant player in the global rare-earth supply chain, and these materials are essential for technologies and industries ranging from electric vehicles and electronics to aerospace. The US needs these materials, and China has used export controls on rare earths and related materials as part of its response to US trade and technology restrictions.
In 2025, the US and China repeatedly imposed and adjusted tariffs and export controls, with temporary arrangements aimed at reducing some of those restrictions. However, the underlying problem has not disappeared, and the trade tensions continue to escalate. According to Reuters, the Trump administration is now slowing or limiting approval of aircraft spare parts exports to China, further exacerbating the tensions.
The US-China trade war has significant implications for the global economy, with the two nations being major trading partners. The ongoing tensions have resulted in tariffs and export controls on a range of products, including aircraft spare parts, and have raised concerns about the impact on the global supply chain. As the trade war continues to escalate, it remains to be seen how the situation will unfold and what the long-term consequences will be for the US, China, and the global economy.
Key points
- The US-China trade war has escalated to include aircraft spare parts as a bargaining chip.
- China is a dominant player in the global rare-earth supply chain, which has become a critical point of contention in the trade war.
- The ongoing trade tensions have significant implications for the global economy, with the US and China being major trading partners.
