China’s Determination in Escalating Trade War with the US

As the US-China trade war intensifies, both nations are ramping up tariffs and export bans, leading to a potential long-lasting standoff with global economic repercussions.

Escalation of Trade War

President Donald Trump has threatened to impose an additional 50% tariff on top of the 54% already announced, prompting Beijing to retaliate with a 34% tariff on all US imports and fresh export bans on rare earths.

Intensifying Conflict

The conflict further escalated when Trump threatened an extra 50% tariff if China doesn't withdraw its retaliatory measures. In response, China's Commerce Ministry criticized Trump's actions as a mistake and vowed to fight back to the end.

Economic Impact

The trade war is expected to have widespread economic consequences, with households facing affordability issues and industries experiencing margin squeezes. Consumer behavior is already shifting, with some stockpiling essential items to avoid price inflation.

Market Reaction

The ongoing dispute has led to a global stock market rout, causing uncertainty and potential economic downturns. Despite partial recoveries in European and Asian markets, analysts warn of prolonged market volatility.

Uncertain Resolution

Analysts predict a prolonged conflict due to the differing negotiation styles of Trump and Chinese leader Xi Jinping. Both sides seem unwilling to back down, raising concerns about the future of financial markets in the US and China.

China's Strategy

China's countermeasures exceed expectations, reflecting their perception of extreme US actions. Beijing sees US efforts to target Chinese exports through third countries as comprehensive and malicious, leading to heightened tensions.

In conclusion, the US-China trade war shows no signs of abating, with both nations digging in their heels and preparing for a protracted economic battle.

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By: htan@insider.com (Huileng Tan)
Title: China’s Determination in Escalating Trade War with the US
Sourced From: www.businessinsider.com/us-china-trade-war-retaliatory-trump-tariffs-expensive-inflation-prices-2025-4
Published Date: Tue, 08 Apr 2025 11:52:41 +0000