Zanny Minton-Beddoes

brutal truth is that, yes, the United States has a lot of leverage over China, particularly in financial area.

But China also has a lot of leverage over the United States.

And it's really the one country that I think the U.S.

can't essentially push around through using economic weapons.

Do you think that Trump did not count on retaliation?

I think President Trump has a very strong sense of America's ability to use its military and economic power to push countries around.

And also his own personal power.

Yes, I think he's extremely good at that.

He's extremely good at recognizing weakness in others and using the clout that he has as America's president to further what in his view is America's advantage.

I would not be so sure that often it is in America's advantage, but he sees it as that.

But I think China is a case where he's sort of met his match and President Xi is being as tough in return and is playing hardball.

And when President Xi is playing hardball, it becomes clear that President Trump is keen to negotiate.

But whereas with other countries, he and his team have been able to bully them into deals where they have agreed to pay tariffs on goods.

their exports to the US.

Because, for example, let's take the case of the European Union.

Very close to home here for me.

The EU did a deal with the United States, which essentially accepted

tariffs on European goods going into the United States and made all kinds of promises about investing in the United States.

And the reason that the Europeans went along with this is that they really, really need the U.S.

's support in NATO.