The trade conflict between the U.S. and China has escalated dramatically, with the White House confirming a 145% tariff on most Chinese goods.
This figure combines a newly imposed 125% levy with an existing 20% tariff.
The new tariff imposed by the US follows China's announcement of retaliatory tariffs, setting an 84% tax on U.S. imports.
The intensified trade dispute, characterized by tit-for-tat levies, has sent shockwaves through global markets.
The U.S. stocks, already declining since the initial tariff announcements, experienced further drops, with major tech companies like Amazon and Apple seeing significant losses on Wall Street.
The ongoing developments are being closely monitored, with President Trump and his cabinet addressing the press.
Meanwhile, the European Union joined the fray, announcing its own retaliatory tariffs on U.S. steel and aluminum imports, set to begin soon.
The European Commission emphasized a willingness to suspend the measures if a fair agreement can be reached.
Alongside the new tariffs, China imposed export controls on 12 American firms, restricting dual-use items with civilian and military applications.
Additionally, six more U.S. companies were added to China’s “unreliable entity list,” and a formal complaint was lodged with the World Trade Organization.
Despite the mounting tension, the U.S. Treasury Secretary Scott Bessent downplayed China’s actions, calling the country a major offender in the global trade system and insisting the imbalance favours the U.S.
China’s Ministry of Commerce reaffirmed its stance, expressing a willingness to negotiate but not at the expense of sovereignty.
A white paper published by Beijing accused Washington of uni-lateralism and protection-ism, while warning of continued retaliation if provoked.
As global markets react to the standoff, Beijing braces for a potential hit to its crucial export sector.
Trade between China and the U.S. was valued at approximately $500 billion last year, underlining the high stakes involved in this escalating economic conflict.
