In 2025, U.S. President Donald Trump returned to the weapon of tariffs, imposing high duties on Chinese imports reaching 145%, before being later reduced to 30% under a temporary 90-day truce agreement. China, for its part, responded by lowering its tariffs to 10%, in an attempt to curb the escalation.

Despite the severity of the measures, the U.S. inflation rate recorded a drop to 2.3% in April – the lowest level in four years – supported by previously available imported inventories. However, this decline appears temporary, as experts predict price increases once those inventories are depleted, signaling a return of inflation in the summer.

In the long run, economic models such as the Wharton Budget Model predict that these tariffs will reduce the U.S. GDP by 6%, with a projected decline in wages by 5%, equivalent to a loss estimated at about $22,000 for a middle-income family over its lifetime.

Meanwhile, India found a golden opportunity amid the tensions, as major U.S. companies like Apple shifted part of their production lines there, enhancing New Delhi's efforts to establish itself as a global industrial hub.

Although markets calmed a bit after the temporary agreement, the continued high tariffs and supply chain disruptions continue to pose heavy challenges to the global economy, especially the U.S.