US-China Trade War Escalates as Tariffs Soar to 145%
The escalation follows a new executive order from former President Donald Trump, raising base tariffs from 84% to 125%, alongside an additional 20% levy targeting fentanyl-related products.
Washington/Beijing: The United States has intensified its trade war with China, pushing total tariffs on Chinese imports to a staggering 145%, CNBC reported. The escalation follows a new executive order from former President Donald Trump, raising base tariffs from 84% to 125%, alongside an additional 20% levy targeting fentanyl-related products.
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Pause for Other Nations, But Not for China
While Trump announced a 90-day suspension of tariffs on most nations, China was notably excluded, signaling a deliberate move to tighten pressure on Beijing. The decision marks a renewed flashpoint in an already heated trade standoff between the world’s top two economies.
China Hits Back with 84% Tariffs, Rejects “Coercion”
In a prompt response, China imposed 84% tariffs on American imports, effective Thursday afternoon. Citing Washington’s “coercive tactics,” a Chinese Ministry of Commerce spokesperson said negotiations would only proceed on the basis of mutual respect and equality, warning that “pressure, threats, and coercion” would not work on Beijing.
China’s foreign ministry echoed the sentiment, accusing the US of “bullying” and warning that Trump’s approach would ultimately fail.
Tariff Timeline: From 34% to 145% in Just Months
The current standoff is the culmination of months of tit-for-tat hikes:
- February: Trump imposed an across-the-board 10% tariff on Chinese goods.
- March: Tariffs were doubled to 20%.
- April: Additional levies pushed total duties to 104%, followed by this week’s jump to 125% plus a special fentanyl-related import tax, taking the total to 145%.
Analysts Warn of Economic Fallout
Economists warn that the escalating tariff war could plunge the US into a recession, as the cost of imported goods soars and retaliatory tariffs hurt American exporters. Businesses in both countries are already reporting higher costs, potential layoffs, and disrupted supply chains.
China exported $439 billion worth of goods to the US last year, while the US shipped only $144 billion to China—raising fears that American industries may bear the brunt of the standoff.
