In 2025, US President Donald Trump returned to the weapon of tariffs, imposing high duties on Chinese imports that reached 145%, before being later reduced to 30% under a temporary 90-day truce agreement. China, for its part, responded by lowering its tariffs to 10%, in an attempt to curb the escalation.

Despite the severity of the measures, the US inflation rate recorded a decline to 2.3% in April - the lowest level in four years - supported by previously available imported inventories. However, this decrease appears to be temporary, as experts anticipate price increases once those inventories run out, signaling a return of inflation in the summer.

In the long term, economic models such as the "Penn Wharton Budget Model" predict that these tariffs will reduce the US GDP by 6%, with a projected decline in wages by 5%, which translates to a loss estimated at about $22,000 for a middle-income family over their lifetime.

In contrast, India found a golden opportunity amid the tensions, as major American companies like Apple shifted part of their production lines there, bolstering New Delhi's efforts to establish itself as a global industrial hub.

Although markets calmed somewhat after the temporary agreement, the continued high tariffs and supply chain disruptions continue to pose heavy challenges to the global economy, particularly the US.