#TrumpTariffs

Escalation and Partial Rollback of Tariffs on China

In early 2025, the U.S.–China trade war intensified, with the U.S. imposing a 145% tariff on Chinese imports, prompting China to retaliate with a 125% tariff on American goods. These actions led to increased consumer prices and strained supply chains. However, on May 14, both nations agreed to a 90-day truce, reducing U.S. tariffs on Chinese goods to 30% and Chinese tariffs on U.S. goods to 10% .

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🔹 Global Tariff Measures and Currency Concerns

President Trump invoked the International Emergency Economic Powers Act to implement a 10% tariff on all imports, with higher rates for countries with significant trade deficits with the U.S. . Additionally, he threatened a 100% tariff on nations attempting to move away from the U.S. dollar, targeting BRICS countries considering a rival currency .

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🔹 Impact on Inflation and Economy

Despite the tariff increases, U.S. inflation unexpectedly cooled in April, with the annual rate dropping to 2.3%, the lowest since February 2021. However, economists caution that sustained tariffs could eventually raise inflation, slow growth, and increase unemployment .

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🔹 Tariffs on the Entertainment Industry

The Trump administration has proposed a 100% tariff on foreign-made films, aiming to revitalize domestic film production. This move has raised concerns within the entertainment industry about potential impacts on international collaborations and distribution .