U.S.-China Trade War Escalates: Trump Slaps 125% Tariff as Tensions Deepen

​The trade tensions between the United States and China have escalated significantly in recent months, marked by a series of tariff impositions and retaliatory measures. In early 2025, President Donald Trump, during his second term, initiated a 10% increase in tariffs on Chinese imports. China responded with its own set of tariffs on U.S. goods, targeting sectors such as agriculture and energy. This tit-for-tat escalation continued, with the U.S. raising tariffs to 20% in March, prompting further retaliatory measures from China. ​

By April 2025, the situation intensified as President Trump announced a 90-day suspension of most global tariffs, reducing them to 10%, while simultaneously increasing tariffs on Chinese imports to 125%. This strategic move aimed to isolate China as the primary trade adversary and was influenced by turmoil in financial markets and appeals from global trading partners. The stock market responded positively, with the S&P 500 surging 9.5%. ​

The technology sector has been significantly impacted by these trade tensions. The U.S. imposed restrictions on the export of advanced semiconductor technologies to China, affecting key players like NVIDIA, Micron Technology, Intel, and Qualcomm. These measures disrupted the semiconductor supply chain and heightened economic tensions. In retaliation, China implemented export controls on critical minerals essential for semiconductor manufacturing, further exacerbating the situation. ​

In response to U.S. trade actions, China has taken steps to bolster its economic resilience. The Chinese government set an ambitious 5% growth target for 2025, signaling confidence in overcoming trade-related challenges. Additionally, China expanded export controls to include more U.S. firms and filed complaints with the World Trade Organization. These measures reflect China's determination to counteract U.S. pressures and sustain its economic growth. ​

The latest developments indicate a complex and evolving trade landscape. While the U.S. has paused certain tariffs, the substantial increase in tariffs on Chinese goods underscores ongoing tensions. Both nations continue to implement policies aimed at protecting their economic interests, contributing to global economic uncertainty. Observers remain cautious about the potential for further escalations and the broader implications for international trade relations. ​