U.S.-China Trade War Escalates With New Tariffs and Retaliatory Measures

The U.S. imposes sweeping tariffs on Chinese imports, prompting Beijing to respond with targeted levies, export restrictions, and regulatory actions.

The United States has enacted a 10% tariff on all Chinese imports, affecting $525 billion worth of goods, while China has retaliated with 10%-15% tariffs on $14 billion worth of U.S. products, including energy and agricultural machinery.
China has introduced export controls on critical minerals used in semiconductors and high-tech industries, escalating tensions in global supply chains.
Beijing launched antitrust investigations into U.S. companies like Google and Nvidia and added firms such as PVH Group and Illumina to its 'unreliable entities' list, signaling potential regulatory pressure.
China’s economic vulnerabilities, including sluggish growth and high domestic debt, may limit its ability to sustain prolonged trade conflict, even as it seeks to diversify trade partners and strengthen ties with the Global South and Europe.
Analysts warn that the trade war could expand beyond tariffs, with potential impacts on global financial systems, U.S. Treasury markets, and the dominance of the U.S. dollar in international trade.