US-China Trade War Intensifies as Tariffs Reach Historic Highs

The Trump administration's tariff hikes on Chinese imports to 145% have provoked sharp retaliation from Beijing, escalating the global economic fallout.

The Trump administration has implemented a 90-day pause on most global tariffs but raised duties on Chinese imports to 145%, effectively blocking many goods.
China escalated its response by increasing tariffs on US goods to 125%, signaling an end to further tit-for-tat tariff hikes but leaving the door open for alternative retaliatory actions.
The European Union has paused its planned counter-tariffs and is using the 90-day window to negotiate with the US, while also seeking to diversify trade partnerships globally.
Financial markets remain volatile, with US bond yields climbing, the dollar weakening, and fears of inflation and recession growing due to the trade war's economic impact.
Analysts warn that the tariff conflict may redirect Chinese exports to Europe, intensifying competition in vulnerable industries like steel, aluminum, and solar panels.