After the two nations lowered their tariffs for each other, the United States has begun pushing for a” tactical dispersion” from China, primarily in the metal, medical, and semiconductor sectors.
A US and UK trade agreement signed on May 8 demonstrated that Washington wants veto power over China’s purchases of American steel and pharmaceutical companies. Some Chinese experts anticipated that the US would include these “poison capsules” in upcoming trade agreements with other nations.
In addition, the US Commerce Department issued three recommendations in three rules that organizations worldwide should not use Chinese superior computing cards, permit the teaching of Chinese AI versions with US artificial intelligence chips, or re-export National high-end chips to China.
The US and China agreed to a 90-day “reciprocal” tariff delay in a joint statement released on Monday. In addition to the typical 20 % tariff that the US imposed during the Trump administration’s first trade war against China in 2018, the US also lowered its tariffs on Chinese goods from 145 % to 30 %. China lowered its tariffs on US goods from 125 % to 10 % in exchange.
US Secretary of State Scott Bessent stated on Monday that the country prefers a proper coupling over a general decoupling with China. He stated that the US will establish strong supply chains for important metals like semiconductors and material.  ,
The UK’s metal industry was hit by US President Donald Trump’s 25 % tariff on all imports of aluminum, steel, and derivative goods on March 12. Every year, the UK export about$ 700 million ( US$ 931 million ) of steel and aluminum to the US along with$ 2.2 billion in gym and equipment.
According to the recently signed US-UK “economic prosperity agreement” ( EPD), the US will offer modified reciprocal tariff treatment for some important UK imports based on the two nations ‘ “balanced” trading relationship and shared national security priorities. Any modifications will be in line with those shared national security interests, including those that may be addressed in upcoming US Section 232 examinations.  ,
What are the main points of the partnership, in this case:
- For UK electrical goods at a 10 % price, the US will establish a limit of 100 000 automobiles.
- For UK steel, aluminum, and some derivative steel and aluminum products, the US will establish a quota at most-favored nation ( MFN) rates.
- The US and the UK intend to reach agreement on tremendously preferential treatment outcomes for materials and medicine.
- With a view to a significantly favorable outcome, the US and the UK may engage in negotiations regarding different sectors that are subject to Area 232 investigations or another tariff measures.
- The UK made commitments to abide by US standards for the protection of the US  supply chains for steel and aluminum products and for the ownership of important production facilities.
According to The Telegraph, the UK’s recent Labor government has the authority to veto Chinese investments in the country’s steel and drug sectors under the terms of the agreement.  ,
The Bureau of Industry and Security ( BIS ) of the US Commerce Department ( BIS ) launched Section 232 investigations in 2018 into the impact of imports of steel and aluminum on US national security. To encircle China’s access to North American steel and aluminum markets and potentially alter its economic relationship with Canada and Mexico, it included the so-called “poison pill” clause in the US-Mexico-Canada Agreement ( USMCA ).  ,
The BIS launched new Part 232 investigations in March and April 2025 regarding the exports of copper, lumber, semiconductors, chip-making equipment, medications, and their components, trucks, and processed important minerals and generic products.  ,
Zhang Yansheng, a senior scholar at the , China Academy of Macroeconomic Research,  , told the Financial Times,” This type of’poison supplement’ is really worse than the taxes.
Zhang claimed that the US-UK trade agreement demonstrated Washington’s push to impose similar conditions on other nations during industry discussions. He claimed that China may “bluntly raise the issue in discussions with the UK,” but that at this point it may hold off on retaliation right away.  ,
China has made images to the UK and asked for clarification, according to a declaration from the Chinese Embassy in the UK on Wednesday. Cooperation between nations does not violate or defame any third party’s objectives. China is steadfastly opposed to any party seeking a package that hurts China’s objectives.
The Chinese Embassy stated that it will continue to monitor the condition and act as needed.
A blogger from Shandong, China, claimed it is not worthwhile to sacrifice the opportunity to work with China in the device and pharmaceutical industries by imposing a 100, 000 car export quota on the UK’s annual US exports.
Reversing the propagation rule for AI
The Biden administration made the announcement of the AI propagation law on January 15, a novel regulatory framework that will allow for responsible propagation of cutting-edge AI systems.  ,
If US businesses, primarily Nvidia and AMD, trade high-end AI chips to different nations besides the United States, they must submit an application for export licenses under the framework. On May 15, it was scheduled to start meeting its compliance needs.
The US Commerce Department confirmed on Tuesday that the BIS would not abide by the AI propagation law.
According to the section,” These new regulations would have stifled American innovation and placed costly new regulatory requirements on businesses.” The diffusion law also would have hampered US diplomatic ties with “many nations” by lowering their position to” second-tier.”
The BIS also announced three changes to improve trade controls for AI chips from other countries:
- educating the market on the dangers of using certain Huawei Ascend cards and PRC advanced computing ICs.
- A public safety precaution is being taken regarding the potential repercussions of allowing the use of US AI bits for Chinese AI models.
- Demanding US businesses to protect supply chains from diversion strategies ( China’s strategies to obtain AI chips via third countries ).
Additionally on Tuesday, Trump led a group of systems luminaries on a trip to the Middle East, including Lisa Su from AMD and Jensen Huang from Nvidia. 18, 000 Blackwell cards will be shipped to Saudi Arabia, according to Nvidia.
A Shaanxi-based journalist asks,” Why did the US taking action against Huawei’s Ascend AI microprocessor?” The Ascend 910C device is comparable to some of Nvidia’s bits, the company claims. It won’t take long for it to surpass Nvidia.”
She claims that Washington’s efforts to halt the Ascend chip’s expansion into the world market are pointless because it now targets primarily local customers. She claims that China will continue to outlaw the US from exporting its crucial materials.
According to Chinese media, the Ascend 910C performs similarly to the H100 device from Nvidia. Huawei’s production capacity is still constrained because Semiconductor Manufacturing International Corp ( SMIC ), its contract manufacturer, does not employ extreme ultraviolet ( EUV) lithography to create high-end chips.  ,
Read more: US eases trade conflict and pursues” secret coupling” with China.