US-China Trade War Escalates: 145% Tariff Hike Sparks Fury from Beijing
Trump Tariff 2025: The White House has reported that President Trump has increased tariffs on Chinese goods to 145%, escalating the trade war with China. China has also retaliated.
US President Donald Trump has increased the tariff on Chinese goods to a total of 145%, giving a new height to the ongoing trade war with China. The White House officially confirmed on Thursday that Trump's aggressive strategy is aimed at putting pressure on Beijing, especially over China's alleged role in fentanyl supply chains.
84% Tariffs in China's Retaliation
After Trump announced a new tariff of 125 per cent on Chinese imports on Wednesday, the White House clarified that this tariff is in addition to the 20 per cent tariff already in place. Accordingly, the total tariff is now 145%. In response, China imposed an 84% tariff on U.S. goods on Thursday and began to strengthen its ties with Europe and Asia.
'We want to treat the world fairly': Trump
In the cabinet meeting, Trump said, "We are very happy with the way the country is functioning. Treasury Secretary Scott Besant called the move "a deliberate strategy to isolate China" and said, "Don't take retaliation, you will be rewarded."
China's Diplomatic Activism
Amid trade tensions, China has reached out to European Commission President Ursula von der Leyen and leaders of ASEAN countries. "China has evaluated all uncertainties and will introduce new policies as required," Premier Li Keqiang said, adding that China is ready to further deepen trade, investment and industrial cooperation with the EU.
Markets stirred, 'Trump blink' causes turmoil
At the same time, Trump's move caused tremendous turmoil in the global markets. The sudden tariff stop, called the 'Trump blink', saw the S&P 500 jump by 9.5%. However, the decline returned at the end of the week and investors turned to safer investment options. However, in 2024, China exported $463 billion worth of goods to the US, while the US sold $199 billion worth of goods to China. The top export products from the US to China include soybeans, planes and semiconductors, while imports from China include mobiles, computers, toys and textiles.
