Wilbur Ross, the former Commerce Secretary under President Donald Trump, has cautioned that the U.S.-China trade war is far from over, despite recent trade agreements with the EU and Japan.

What Happened:  Ross, who was part of President Trump’s first administration, commended the recent trade deals that the White House has made with key global economies. However, he voiced doubts about the U.S.’s ability to secure a similar agreement with China, its main competitor, reported Fortune.

He pointed out that China’s political calendar, particularly the upcoming meeting of top leaders in August, might hinder any immediate resolution. Ross also highlighted China’s reluctance to appear as “submitting to Trump’s demands.”

The U.S. and China have been engaged in a tit-for-tat tariff escalation. Despite a temporary truce in May, Ross warned that if a deal isn’t reached soon, the tariffs could return to their previous high levels, severely impacting Chinese exports to the U.S.

Ross also suggested that China might try to bypass economic sanctions by routing shipments through countries with lower U.S. tariff rates. However, the effectiveness of this approach is still unclear.

"We're in much better shape because it's now clear that if there's gonna be a real trade war with anyone it would just be with China, so it's limited the risk that we have,” stated Ross.

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Why It Matters: The U.S.-China just concluded the third round of trade talks in Stockholm, Sweden. U.S. Treasury Secretary Scott Bessent said the extension of the U.S.-China tariff truce depends on President Trump’s approval, as he has the final say on trade deals.

The absence of a trade agreement between the U.S. and China could lead to a significant decrease in Chinese exports to the U.S. The Observatory of Economic Complexity has projected that if the two countries fail to reach a trade agreement and the proposed higher tariffs on China are implemented, Chinese exports to the U.S. could reduce by $488 billion by 2027.

Moreover, critics have questioned the substance of the U.S.-EU trade agreement, calling it a “framework of a deal” and suggesting that the terms are subject to change. Similarly, industry experts have expressed skepticism about the feasibility of the EU’s pledge to purchase $750 billion worth of U.S. energy products over the next three years, as part of its trade deal with the U.S.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.