• On April 9, 2025, the U.S. imposed a 50% tariff on Chinese imports at 12:01 AM ET, escalating tensions; China retaliated within 7 hours by adding a 50% tariff on U.S. imports, bringing their total to 84%, matching the U.S.'s combined 34% and 50% rates under Trump’s policies.

  • This tit-for-tat tariff escalation mirrors historical trade wars, like the Smoot-Hawley tariffs of the 1930s, which reduced global trade by 3-5% of world GDP and deepened economic downturns, as noted in "A Wealth of Common Sense" (2025).

  • The Trump administration’s pledge to counter all tariff increases signals a potential spiral, risking a severe trade war; Tax Foundation data (2025) shows prior Trump tariffs already cost the U.S. economy $80 billion, with retaliatory tariffs targeting $6 billion in American goods.

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