Overview

• President Trump has raised tariffs on Chinese imports to an unprecedented 145%, intensifying the trade conflict between the two nations.
• China has responded with 125% tariffs on US goods and has vowed to continue retaliating against what it calls US 'blackmail.'
• China is leveraging its dominance in rare earth materials, crucial for US defense and tech industries, as a key point of strategic pressure.
• Economic experts warn that the trade war is expected to slow GDP growth in China and raise consumer prices in the US, with significant global economic implications.
• China has reduced its reliance on the US market, redirecting trade through Southeast Asia and strengthening ties with alternative partners such as Vietnam and Cambodia.