The trade war between the US and China has started after the US decided to impose reciprocal tariffs on countries around the world. US President Donald Trump has imposed 20 per cent tariffs on Chinese imports. Subsequently, they imposed a reciprocal tariff of 34 per cent on China, taking the total tariff on Chinese goods to 54 per cent. China responded by slapping additional tariffs of 34 per cent on the US.
Trump further tightened his policy and threatened to impose a 50 per cent tariff on Chinese imports, taking the total tariff on Chinese goods to 70 per cent, if China did not roll back the tariffs imposed on US goods in response to the tariffs imposed by him.
Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION, and the long time abused USA is bringing in Billions of Dollars a week from the abusing countries on Tariffs that are already in place. This is…
— Donald J. Trump (@realDonaldTrump) April 7, 2025
America’s obsession with China
Meanwhile, US President Trump gave China a day’s time and said that if China did not withdraw its retaliatory tariffs by Tuesday, April 8, 2025, he would impose a 50 per cent tariff on Chinese imports by Wednesday. In a post on social media, Trump said that if China did not withdraw retaliatory tariffs, the US would end all negotiations with China. China announced on April 4, 2025, that it will impose an additional tariff of 34 percent on all goods imported from the United States starting April 10, 2025.
Trump’s actions threaten the supply chain of global economic growth
Describing the US tariffs as “bullying,” China said it would not only harm US interests but also jeopardise global economic growth and supply chains. Earlier, Trump had reacted to China’s decision to impose 34 per cent tariffs, saying it was a “panic move.” “China has taken the wrong step,” he wrote on Twitter. They’re terrified. And that’s something they can’t stand. China’s retaliatory tariffs will be very heavy on them.”