What's happened
On April 11, 2025, China raised tariffs on U.S. goods from 84% to 125% in response to the U.S. imposing a total of 145% tariffs on Chinese imports. This escalation in the trade war has significant implications for both economies, affecting various sectors and consumer prices.
What's behind the headline?
Economic Impact
- The increased tariffs are expected to raise consumer prices in the U.S., particularly for goods like clothing and electronics, which rely heavily on Chinese manufacturing.
- U.S. companies may face reduced competitiveness in China due to retaliatory tariffs, impacting sectors such as agriculture and technology.
Political Ramifications
- The trade war reflects broader geopolitical tensions, with both nations using tariffs as tools of economic strategy.
- China's response indicates a willingness to endure economic pain rather than concede to U.S. demands, suggesting a long-term conflict.
Future Outlook
- Analysts predict that continued escalation could lead to job losses in the U.S., with estimates suggesting up to 740,000 jobs could be at risk by the end of 2025.
- The potential for negotiations remains uncertain, as both sides have expressed a commitment to their respective positions, complicating any diplomatic resolution.
What the papers say
According to AP News, China has raised its tariffs on U.S. goods to 125%, marking a significant escalation in the trade war. The Commerce Ministry stated, 'If the U.S. insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures.' Meanwhile, The Independent highlights that the U.S. tariffs total 145%, with President Trump emphasizing a lack of respect from China as a reason for the heightened tariffs. This sentiment is echoed by the NY Post, which notes that the trade war has become a 'numbers game' with no practical economic significance. The Japan Times adds that China is prepared to take further countermeasures, including lawsuits at the World Trade Organization, indicating that the conflict is far from over.
How we got here
The trade tensions between the U.S. and China have been escalating since 2018, with both countries imposing tariffs on each other's goods. Recent actions include the U.S. increasing tariffs on Chinese imports to 145%, prompting China to retaliate with its own tariff hikes and other countermeasures.
Go deeper
- What sectors are most affected by the tariffs?
- How are consumers responding to rising prices?
- What are the potential long-term effects of this trade war?
Common question
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
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China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.4 billion in 2019.
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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The World Trade Organization is an intergovernmental organization that is concerned with the regulation of international trade between nations.
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TikTok/Douyin is a Chinese video-sharing social networking service owned by ByteDance, a Beijing-based Internet technology company founded in 2012 by Zhang Yiming.
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Xi Jinping is a Chinese politician serving as the general secretary of the Communist Party of China, president of the People's Republic of China, and chairman of the Central Military Commission.