#USChinaTensions

Tensions between the United States and China have escalated significantly in April 2025, encompassing trade disputes, military activities, and economic strategies.​

🇺🇸 Trade War Intensifies

Tariff Escalation: President Trump has increased tariffs on Chinese goods to 145%, citing issues like fentanyl exports and trade imbalances. China retaliated with tariffs of up to 125% on U.S. imports, including agricultural products and energy resources.

Wikipedia

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Rare Earth Export Controls: China has imposed export restrictions on rare earth elements, which are vital for various high-tech industries, affecting global supply chains. ​

🛡️ Military and Strategic Posturing

Joint Military Exercises: The U.S. and the Philippines have initiated large-scale military drills in the South China Sea, involving advanced weaponry and simulating defense scenarios. China has condemned these exercises, viewing them as provocative. ​

AP News

💱 Economic and Financial Measures

Yuan Internationalization: China's central bank is encouraging state-owned enterprises to use the yuan in international transactions, aiming to reduce dependence on the U.S. dollar. ​

Reuters

Aviation Industry Impact: Amid the tensions, a Boeing 737 Max aircraft intended for a Chinese airline was returned to the U.S., reflecting the strained trade relations affecting the aviation sector. ​

Business Insider

📈 Market Reactions

Gold Prices Surge: Investors are turning to gold as a safe-haven asset, pushing prices to record highs due to uncertainties stemming from U.S.-China tensions and domestic policy disputes. ​

Investopedia

Recent Developments in U.S.-China Relations

Reuters

China central bank urges state-owned businesses to prioritise yuan in overseas expansion.