posted 11th April 2025
China Escalates Trade War with Steep Tariff Hike on U.S. Goods
Beijing, 11 April 2025 – In a bold move, China has announced an immediate increase in tariffs on U.S. imports, raising duties from 84% to 125% effective tomorrow. This sharp escalation underscores a growing divide between the world’s two largest economies, accelerating the decoupling of their economic ties.
The Chinese Ministry of Commerce justified the decision, pointing to “unfair trade practices” and “escalating economic pressures from the United States” as key drivers. The new tariffs will hit a broad swathe of American goods, from agricultural products to advanced technology, further complicating trade relations already strained by ongoing disputes.
Analysts suggest this move could hasten the separation of the American and Chinese economies, a trend fuelled by disagreements over technology, security, and global influence. “China’s response is a clear message,” said Dr. Lin Wei, an economist at Peking University. “The decoupling process is gaining momentum, with significant consequences for global markets.”
Financial markets reacted swiftly, with U.S. stock futures tumbling and Asian indices closing sharply lower. American businesses now face heightened costs and the risk of losing ground in China’s vast market, adding pressure to already disrupted supply chains.
In Washington, the Trump administration has not yet issued a formal response, though insiders hint at potential countermeasures. The U.S. Chamber of Commerce labelled China’s tariffs “deeply damaging,” calling for urgent dialogue to prevent further escalation.
With both nations digging in, the global economy faces increasing uncertainty. The prospect of a negotiated resolution appears dim as the U.S.-China trade war enters a volatile new phase.
