As of May 2025, the U.S.-China trade war, reignited under President Trump’s second term, continues to escalate, marking a new phase of global economic tension. Triggered by U.S. tariffs of 10% on Chinese imports in February, followed by China’s retaliatory tariffs on U.S. goods like agriculture and energy, the conflict has intensified with U.S. tariffs reaching 145% and China’s at 125%. This tit-for-tat has disrupted global supply chains, raised consumer prices, and sparked fears of a U.S. recession, with the economy shrinking 0.3% in Q1 2025. China’s non-tariff barriers, like export controls and blacklisting U.S. firms, add complexity. Despite Trump’s claims of negotiations, Beijing denies formal talks, signaling a prolonged standoff. Global markets face volatility, with Europe and Asia bracing for spillover effects. The trade war’s broader implications threaten geopolitical stability and economic growth worldwide.
