#USChinaTensions

Tensions between the United States and China have escalated as of April 21, 2025, as seen by rising tariffs and calculated countermeasures.

China has retaliated with 125% tariffs on U.S. goods after President Trump levied 145% tariffs on Chinese imports. China has also warned countries against trade agreements that jeopardize its interests.

Although economists caution that this could backfire by strengthening the currency and devaluing its holdings, China is also thinking about selling U.S. Treasury bonds. Boeing 737 MAX aircraft returning from China are one example of how the war has impacted industries.

U.S. defense supply lines are also at risk due to China's export limitations on rare earth components. The world's markets are still erratic.