U.S.-China tensions have escalated sharply in 2025, primarily due to aggressive trade policies and cybersecurity disputes. The U.S. has imposed 145% tariffs on Chinese goods, prompting retaliatory 125% tariffs from China. Beijing warns other nations against forming trade deals with the U.S. that could harm Chinese interests, labeling such actions as economic coercion .
In the realm of cybersecurity, Chinese state-backed hackers have targeted U.S. infrastructure, including the Treasury Department, while the U.S. has sanctioned Chinese entities involved in cyber espionage . These developments are contributing to a fragmented global trade environment .
