#USChinaTensions

Against the backdrop of new tariffs between the USA and China, the trade war is escalating.

As of April 21, 2025, relations between the USA and China have reached a new point of tension due to the escalation of the trade war. US President Donald Trump announced an increase in tariffs on Chinese goods, including a 125% reciprocal tariff, 20% to combat the fentanyl crisis, and additional tariffs ranging from 7.5% to 100% on certain goods. In response, China has reduced imports of American goods, in some categories to zero, and raised tariffs on American imports to 125%, according to Bloomberg. As a result, China is ramping up trade with the EU, attempting to diversify markets, although experts are skeptical about Europe's openness to such initiatives.

Economists predict a slowdown in China's economic growth due to American tariffs, and Goldman Sachs notes an increase in geopolitical risks, particularly regarding Taiwan.

This trade war could escalate into a financial or even military confrontation, raising concerns worldwide.