The United States and China are entrenched in an escalating trade war following President Donald Trump’s recent imposition of steep new tariffs.

On April 2, 2025, President Trump announced a series of tariffs, including a 10% universal tariff on imports from nearly all countries and additional “reciprocal” tariffs targeting specific nations, notably China.

These measures were justified under a declared national emergency aimed at addressing trade imbalances and protecting American industries

In response, China retaliated with its own set of tariffs, escalating the trade conflict between the world’s two largest economies. The tit-for-tat measures have led to increased economic tensions, with both nations experiencing disruptions in trade and economic activities .

The broader implications of this trade war are significant, affecting global supply chains, increasing costs for consumers, and creating uncertainty in international markets. Economists warn that prolonged trade tensions could lead to slower economic growth and increased volatility in global markets.

As the situation develops, stakeholders worldwide are closely monitoring the actions of both governments, hoping for a resolution that will stabilize international trade and economic relations.