President Donald Trump has escalated the U.S.-China trade war by imposing a 125% tariff on Chinese imports, marking one of the most significant moves in his trade policy.
This announcement, made via his social media platform Truth Social, follows a series of retaliatory measures between Washington and Beijing. Trump stated that these tariffs are aimed at countering China's longstanding trade abuses and its recent imposition of an 84% tariff on U.S. goods.
In contrast, tariffs on goods from 75 other countries have been paused for 90 days. This selective approach isolates China while providing temporary relief to other trading partners. The policy is expected to intensify the ongoing economic conflict between the world's two largest economies, which has been marked by retaliatory measures from both sides since 2018.
China has already responded with an 84% tariff on U.S. goods, further escalating tensions. Analysts warn that these measures could disrupt global trade, increase consumer prices, and strain diplomatic relations. Critics argue that such tariffs may not achieve their intended goals and could harm both economies in the long term.
President Donald Trump has shifted his trade policy focus, singling out China as the primary adversary in a global economic confrontation. His latest move involves pausing reciprocal tariffs on most nations while intensifying trade penalties on Beijing, reversing a trend that previously pushed U.S. allies and neutral nations closer to China.
This strategic pivot could isolate China economically, as nations gravitate back towards the United States, the world's largest economy and a longstanding democratic leader.
Trump's announcement of a tariff pause for other nations immediately boosted U.S. stock markets, with the S&P 500 surging 6% to 5,281.44, breaking a streak of losses triggered by his "Liberation Day" tariff rollout a week earlier.
The decision marks a significant escalation in the trade war with China, following Trump's imposition of a 34% tariff rate last week and threats of an additional 50% tariff if Beijing does not withdraw its retaliatory measures by April 8.
China's President Xi Jinping faces mounting challenges as Beijing retaliates with similar tariffs but risks deeper isolation in the global economy. While Trump’s aggressive tariff policies have drawn criticism in the past, they have reshaped U.S.-China relations and garnered bipartisan support for reducing dependence on China.
This approach aligns with broader concerns over China's state-led development and technological ambitions.
The move comes amid heightened tensions in the ongoing trade dispute, which has seen repeated rounds of tariff increases from both sides. Earlier in April, Trump raised tariffs on Chinese goods to 54%, accusing China of employing trade barriers against U.S. exports.
The latest 125% tariff is expected to further strain bilateral relations and disrupt global trade flows. Analysts predict significant economic repercussions for both nations, with potential ripple effects across international markets.
Agencies