WASHINGTON (TNND) — As the last cargo ships carrying Chinese goods without massive tariffs arrive in Los Angeles, the economic tug of war between the U.S. and China intensifies. These shipments, loaded before April 9, will soon be subject to a 145% tariff, marking a significant shift in trade dynamics.

President Donald Trump has expressed his desire for a fair deal with China, stating, "We were losing hundreds of billions of dollars with China. Now we're essentially not doing business with China, therefore we're saving hundreds and billions of dollars. Very simple."

Trump aims to reshape a system that has led to the majority of consumer goods being manufactured overseas, often resulting in affordable products but a decline in American manufacturing.

I don't think a beautiful baby girl that’s 11 years old needs to have 30 dolls. I think they can have three dolls or four dolls. They don't need to have 250 pencils. They can have five," Trump said, emphasizing a shift towards reduced consumption.

Chinese leaders have accused Trump of being a bully, maintaining a tough stance against the U.S. However, experts like Gordon Chang, author and China analyst, highlight the challenges facing China's economy.

China is in a deflationary spiral. The number that we saw for April for a factory activity was disastrous. There are no good storylines in the Chinese economy these days," Chang said.

In the U.S., the economic outlook is mixed. While job numbers have exceeded expectations, the nation's gross domestic product shrank at a 0.3% annual rate in the first quarter of 2025, a stark contrast to the 2.4% growth in the previous quarter.

Sarah Foster, an economic analyst at Bankrate, noted, "Consumers are not spending as much as they used to, and that's really taking away some of the power away from the economy at the time when tariffs and fears of recessions are starting to increase."

As the week unfolds, questions remain about whether the slight softening in U.S.-China relations will continue.

President Trump has indicated he may consider lowering tariffs on China, while Chinese officials have signaled openness to negotiations.