On April 16, 2025, US President Donald Trump announced the imposition of tariffs of up to 245% on products imported from China, marking a new escalation in the trade war between the world\’s two largest economies. The measure, detailed in an official White House document, intensifies the economic confrontation with Beijing, which had already been responding with retaliatory tariffs and trade restrictions. This decision had a significant impact on global markets, reigniting debates about protectionism and raising concerns about the consequences for consumers, companies and the international economy.
Context of the Trade War
The trade relationship between the US and China has been marked by tensions in recent decades, with disputes centered on trade deficits, unfair trade practices and national security issues. During his first term, Trump had already implemented tariffs on billions of dollars in Chinese products, claiming that China used tactics such as intellectual property theft and state subsidies to gain competitive advantages. Beijing retaliated with tariffs on American products, such as soybeans and meat, affecting the American agricultural sector.
Since resuming his presidency in 2025, Trump has stepped up his protectionist agenda. On April 2, he announced what he called “Liberation Day,” imposing a universal 10 percent tariff on imports from more than 180 countries and targeted tariffs of up to 50 percent on countries with large trade deficits with the U.S., including China, which initially faced a 34 percent tariff. China responded with 34 percent tariffs on U.S. goods, triggering a series of tariff escalations.
In the days that followed, U.S. tariffs on Chinese goods rose to 104 percent and then to 145 percent, with the addition of a pre-existing 20 percent tariff related to the fentanyl crisis, which the U.S. blames in part on China. The most recent increase, to 245 percent, was justified by the White House as a response to Beijing’s “retaliatory actions” and a move to “level the playing field and protect U.S. national security.” The document, however, does not clarify how the new tariff was calculated, which has drawn criticism for its lack of transparency.
China’s immediate reactions and impact
The Chinese government, led by President Xi Jinping, reacted strongly. On April 10, Beijing increased its tariffs on American products to 84% and later to 125%, affecting sectors such as agriculture, technology and manufacturing. In addition, China imposed restrictions on the export of rare earths, materials essential for cutting-edge technologies, and banned the import of Boeing products, a significant measure against the American aerospace industry.
Chinese Foreign Ministry spokesman Lin Jian declared that “there are no winners in a trade war” and called on the US to “stop threatening and blackmailing”. Beijing also announced the appointment of Li Chenggang, ambassador to the World Trade Organization (WTO), as the new trade negotiator, signaling a willingness to engage in dialogue, but only on conditions of “equality and mutual respect”.
Global markets reacted with volatility. Asian stocks including China’s CSI300 and Hong Kong’s Hang Seng Index posted one-off gains after a 90-day pause in tariffs on other countries, but US and European stocks fell amid uncertainty. The dollar hit a three-year low against currencies such as the euro and yen, while gold hit all-time highs, reflecting a search for safe haven assets.
Economic fallout for the US
The 245% tariffs are expected to significantly increase import costs for Chinese goods, which account for a substantial share of the US market, including electronics, apparel and industrial equipment. This could put pressure on US inflation, reducing consumers’ purchasing power. US companies such as Apple, which rely on supply chains in China, face logistical and financial challenges. However, the White House announced exemptions for technology products such as iPhones in what was interpreted as a tactical retreat to avoid immediate impacts on strategic sectors.
On the other hand, Trump argues that the tariffs will protect American industry by encouraging domestic production and reducing the trade deficit with China, which reached $971 billion in 2024. Critics, however, warn that replacing Chinese suppliers with local alternatives or those from other countries, such as Vietnam and Mexico, will take time and increase costs.
Bottom line:
Trump\’s proposal is not limited to domestic US policy — it could reshape international trade. The world is watching, markets are on alert, and the coming months promise to be decisive.
📣 What do you think?
Is Trump\’s proposed tax a smart move or a shot in the arm?
