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-China Trade War Escalates with Record Tariffs and Global Repercussions

As tariffs reach historic levels, both nations dig in, reshaping global trade alliances and causing widespread market disruptions.

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Gantry cranes stand near shipping containers at Yangshan Port outside of Shanghai, China, April 15, 2025.  REUTERS/Go Nakamura/File Photo
U.S. Federal Reserve Chair Jerome Powell speaks at a press conference, following a two-day meeting of the Federal Open Market Committee on interest rate policy, in Washington, D.C., U.S., March 19, 2025. REUTERS/Nathan Howard/File Photo

Overview

  • The U.S. has imposed a 145% tariff on Chinese imports, with China retaliating with 125% tariffs on U.S. goods, effectively stalling bilateral trade.
  • Global markets are reeling from the economic fallout, with supply chains disrupted and businesses scrambling to adjust to the new trade environment.
  • China is leveraging the situation to strengthen trade ties with Southeast Asia and Europe, positioning itself as a more stable partner than the U.S.
  • Frequent shifts in U.S. tariff policies have created uncertainty, undermining business confidence and straining relationships with traditional allies like Europe.
  • Experts warn the escalating conflict could lead to long-term structural changes in global trade, with nations diversifying supply chains away from both the U.S. and China.