United States
Raised tariffs on Chinese goods to 125%
Other countries face only 10% baseline tariffs and 90-day suspension for additional levies
China
Imposed 84% retaliatory tariffs on U.S. imports
Announced sanctions on 18 U.S. companies, including defense contractors
Issued travel and visa advisories for Chinese citizens
Implementing strategic export controls (e.g., rare earths)
World Trade Organization forecasts up to 80% reduction in U.S.–China trade volumes
Opinion
The U.S. and China have entered a phase of mutually escalating economic pressure, shifting the trade war into a full-blown, prolonged conflict.
With both sides now expanding their tactics to include strategic industries, talent mobility, and supply chain diplomacy, a near-term resolution appears increasingly unlikely.
Core Sell Point
As the U.S.–China trade war enters full-scale confrontation, short- to mid-term uncertainty is rising sharply for export-driven companies and sectors reliant on global supply chains in both economies.
Trade tensions between the United States and China have escalated to their highest level yet. While President Donald Trump announced a 90-day suspension of reciprocal tariffs for countries excluding China, tariffs on Chinese imports were raised to 125% without exception. In direct response, China imposed an 84% retaliatory tariff on U.S. goods, effective April 10 at 12:01 PM (local time).
Beijing has consistently responded with proportional countermeasures throughout the conflict. When the U.S. announced 34% tariffs, China matched it. When Washington raised it by another 50%, China escalated its response to 84%. Now, the U.S. has retaliated with an unprecedented 125% tariff on Chinese imports, signaling a stark departure from its softer stance toward other countries. This sharp escalation underscores a deepening divide in the global trade system, centered squarely on the U.S.–China axis.
The latest developments go beyond trade. China has added 18 U.S. companies, primarily in defense sectors, to its sanctions list. It has also issued travel warnings for Chinese citizens visiting the U.S. and advised caution on student visa applications. Strategic export controls—such as restrictions on rare earth shipments—are also being implemented, pointing to long-term confrontation.
The World Trade Organization (WTO) has warned that bilateral trade volumes could fall by as much as 80%, raising global concerns over supply chain stability and geopolitical risk.
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