#USChinaTensions

Tensions between the United States and China have escalated significantly in April 2025, impacting trade, finance, and military dynamics.

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šŸ”„ Trade War Intensifies

President Donald Trump has raised tariffs on Chinese imports to 145%, citing concerns over fentanyl exports and trade imbalances. In retaliation, China has imposed 125% tariffs on U.S. goods and implemented non-tariff measures, including halting rare earth exports and returning Boeing aircraft intended for Chinese airlines .

China's central bank is promoting the international use of the yuan, urging state-owned enterprises to prioritize it in overseas transactions. This move aims to reduce reliance on the U.S. dollar amid escalating trade tensions .

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šŸ›°ļø Military Posturing

The U.S. has deployed "ship killer" missiles to the Philippines during joint military exercises, marking the first deployment of such systems in the region. These exercises, involving thousands of troops, are seen as a strategic response to China's activities near Taiwan and the South China Sea .

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🧨 Diplomatic Strains

China's ambassador to the U.S., Xie Feng, has called for peaceful coexistence but warned that Beijing is prepared to retaliate if necessary . Additionally, China has cautioned against U.S. bond sell-offs, highlighting the potential economic repercussions for both nations .