#USChinaTensions

US-China tensions are escalating into the biggest trade war in history, with far-reaching implications for the global economy. The US has imposed significant tariffs on Chinese imports, reaching 125% on some goods, while China has retaliated with its own measures. This trade war could have substantial short- and medium-term economic effects on both rich and poor countries ¹.

*Key Areas Affected:*

- *Trade*: The US has introduced a universal 10% minimum tariff on all imports, with "reciprocal" tariffs ranging from 11% to 50% on goods from 57 specific countries.

- *Science and Technology*: Collaboration between the US and China is under pressure, threatening to unravel decades of shared progress. The renewal of the US-China Science and Technology Cooperation Agreement is at risk.

- *Economic Impact*: The trade war could lead to increased prices of imported goods, supply chain disruptions, and inflationary pressures. Uncertainty surrounding future tariff levels could also negatively affect consumer and business confidence ¹ ².

*Potential Consequences:*

- *Global Scientific Progress*: A cessation of US-China scientific collaboration could undermine their own scientific ecosystems and hinder progress in addressing global challenges like climate change and pandemics.

- *Economic Stability*: The trade war could lead to substantial declines in the stock market and reduced investor confidence, generating internal political pressure on the US government to de-escalate tensions ² ¹.

*Possible Resolutions:*

- *Internal Pressures*: Substantial declines in the stock market and reduced investor confidence could force the US government to reconsider its stance.

- *Mediation Efforts*: International actors like the European Union could play a crucial role in reducing tensions and encouraging dialogue between the US and China ¹.