$BTC $BNB $SOL

The ongoing trade war between the US and China has escalated further under Donald Trump's second presidency. Trump's administration has imposed steep protective tariffs affecting nearly all goods imported into the US. Here are the key developments:

*Tariff Updates:*

- *Tariff Rate Increase*: The average effective US tariff rate rose from 2.5% to an estimated 27%, the highest level in over a century.

- *China-Specific Tariffs*: Trump raised baseline tariffs on Chinese imports to 145%. China retaliated with a minimum 125% tariff on US goods and restricted exports of rare earths critical to high-tech industries.

- *Global Tariffs*: Trump imposed a 10% tariff on all US imports, effective April 5, 2025, and higher tariffs on imports from 57 countries, ranging from 11% to 50% ¹.

*Impact and Reactions:*

- *Stock Market Crash*: The announcement of these tariffs prompted retaliation from trade partners and triggered a stock market crash.

- *Economic Projections*: The tariffs have contributed to downgraded GDP growth projections by the Federal Reserve and OECD, with rising expectations of a recession.

- *Public Opinion*: A Reuters/Ipsos poll found 73% of Americans expect a price surge under the Trump tariffs, while 57% oppose the tariffs.

*Trade War Escalation:*

- *Beijing's Response*: China has vowed to "fight to the end" in response to Trump's threat to nearly double tariffs on Chinese goods.

- *Global Trade Relations*: The trade war has strained relations between the US and its trade partners, with potential long-term implications for global trade dynamics.