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U.S.-China Trade War Reaches New Peak with Tariffs at Historic Levels

Trump's 145% tariffs on Chinese goods and Beijing's sweeping countermeasures deepen economic and diplomatic tensions, raising global recession fears.

China's President Xi Jinping attends a meeting with Vietnam's Prime Minister Pham Minh Chinh (not pictured) at the Office of the Party Central Committee in Hanoi on April 14, 2025.
Chinese President Xi Jinping, center, attends a meeting with Vietnamese President Luong Cuong, unseen, at the Presidential Palace in Hanoi, Vietnam, Tuesday, April 15, 2025.
U.S. President Donald Trump poses for a photo with China's President Xi Jinping before their bilateral meeting during the G20 leaders summit in Osaka, Japan, June 29, 2019. REUTERS/Kevin Lamarque
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Overview

  • President Donald Trump has implemented a record 145% tariff on Chinese imports, intensifying the trade conflict between the two nations.
  • China has retaliated with 125% tariffs on U.S. goods, blacklisting American firms, halting rare earth exports, and pausing Boeing purchases.
  • The World Trade Organization warns that U.S.-China trade could shrink by 81% in 2025, potentially triggering a global recession.
  • China’s reported 5.4% GDP growth in Q1 2025 contrasts with signs of economic strain, including deflation and factory closures in export-heavy regions.
  • Former U.S. ambassador R. Nicholas Burns describes the current crisis as the worst in U.S.-China relations since 1979, with risks of broader geopolitical spillover.