Evolution of the ongoing trade dispute between the United States and China
Title: The Continued Tit-for-Tat of U.S.-China Tariff War: A Tale of Heightened Economic Uncertainty
Headline: Navigating the Escalating Trade War: A Look at U.S.-China Tariff Actions and Consequences
In the midst of international economic turmoil, the trade conflict between the world's two largest economies remains a hot button issue. Here's how the tariff war between China and the United States has unfolded:
Battleground: Trade Policies
The United States has raised import tariffs on Chinese goods to a whopping 145%, with cumulative duties on certain goods reaching an astounding 245%. China, in retaliation, has enacted reciprocal tariffs of up to 125% on American goods[1]. Both countries have targeted specific sectors such as steel, aluminum, cars, and tech products[1].
Collateral Damage: Global Markets and Supply Chains
Sales of Chinese goods to the US topped $500 billion in 2022, representing 16.4% of the country's exports[1]. As a consequence of the tariff war, China may struggle to sustain its economic growth, particularly after the record-breaking levels achieved in 2024[2]. In the U.S., uncertainty has triggered a manufacturing slump, and officials blame it for a GDP decline in the first quarter of 2025[2].
Will Negotiations Ever Occur?
While U.S. President Donald Trump frequently claims China has reached out for talks, recent statements from Beijing suggest otherwise[2]. China's commerce ministry is "evaluating" the offer, but only after securing concessions from Washington - primarily the elimination of tariffs[2]. Analysts in China agree that economic pressure on the U.S. may drive Washington's calls for negotiations[2].
Timeline of U.S.-China Tariff War
Early Developments (2018-2020)
- The trade war officially commenced in July 2018, when the Trump administration initiated a 25% tariff on Chinese goods[1].
- Subsequent rounds of tariffs and retaliations ensued, with the U.S. imposing tariffs on additional Chinese goods, with China counteracting with its own tariffs on U.S. products[1].
Interim Period (2021-2024)
- A tentative agreement to ease trade tensions was made just before President Joe Biden's inauguration in early 2021[1].
- Trade tensions resurfaced in 2022 due to global situations, such as the Russia-Ukraine conflict[1].
Escalations (2025)
- In February 2025, President Donald Trump implemented a 10% blanket tariff on all Chinese imports, signaling the start of "Trade War 2.0"[1].
- In a significant development in April 2025, the U.S. increased tariffs on China to 125%, while pausing reciprocal tariffs on other countries for 90 days, basing minimum tariffs at 10%[1]. China retaliated by raising tariffs on U.S. goods to 84% and declared a willingness to protect its interests[1].
Industry Impacts
The ongoing tariff war has led to supply chain disruptions and economic uncertainty, prompting companies to diversify their supply chains to mitigate risks. Though this diversification can be costly and time-consuming, it is simultaneously causing market volatility, with investors seeking new opportunities to stabilize their investments[3].
References:[1] AFP, 2025. "U.S. and China struggle to find common ground amidst heightened trade tensions." Retrieved from https://www.afp.com/en/rates/tariffs-us-china [2] The New York Times, 2025. "U.S.-China Trade War Entering Critical Phase." Retrieved from https://www.nytimes.com/2025/05/01/business/us-china-trade-war.html [3] CNBC, 2021. "What the U.S.-China trade war means for global markets and investments." Retrieved from https://www.cnbc.com/2021/03/09/what-the-us-china-trade-war-means-for-global-markets-and-investments.html
- Despite Yiwei's global economic turmoil, the United States and China's ongoing tariff war continues to be a significant international concern.
- The cumulative tariffs between the United States and China have reached impressive heights, with the U.S. imposing tariffs of up to 145% on Chinese goods and China retaliating with tariffs of up to 125% on American goods.
- The technology sector, among others, has been targeted in this tit-for-tat trade war, causing significant disruptions in supply chains worldwide.
- While the U.S. has warned about the potential consequences of the ongoing tariff war, both countries have yet to find a resolution, with negotiations always seeming just on the horizon.
