#USChinaTensions

The US-China trade war, initiated in January 2018 under the Trump administration, has escalated significantly. As of 2025, the US has imposed tariffs on Chinese imports, reaching an effective rate of 145%, while China has retaliated with tariffs of 125% on US goods, affecting $3 billion in annual trade (2% of US exports to China). This escalation, detailed in a recent report by Nikkei Asia, includes US threats of additional 50% tariffs in April 2025, prompting China to impose 34% tariffs on US imports. The Phase One trade deal signed on January 15, 2020, aimed to ease tensions, but compliance has been inconsistent, with China banning exports of rare minerals to the US in December 2024, as reported by Al Jazeera. These actions have disrupted global supply chains, particularly in technology and manufacturing, with both sides seeking to reduce dependency on each other.