It’s a tit for tat economic war.
The global trade landscape is facing renewed turmoil as China has imposed steep 125% tariffs on a wide range of US goods, escalating a long-standing trade war reignited by new American levies on Chinese imports, some of which now face duties as high as 145%.
China’s latest move cocomeon the heels of rising frustration in Beijing over what it calls “unilateral economic bullying” by Washington. In a strongly worded statement, Chinese officials accused the US of violating international trade rules and disrupting the global economic order with “abnormally high” tariffs.
Yet, in a surprising twist, China has also announced that it will not retaliate beyond the current measures, signaling a strategic pause and perhaps a call for de-escalation.
As tensions mount, Chinese President Xi Jinping has urged the European Union to join Beijing in opposing what he described as America’s global strong-arm tactics. “There are no winners in a tariff war,” Xi said, inviting the EU to take a unified stand.
Meanwhile, US president Donald Trump, whose administration spearheaded many of the existing tariffs, has indicated that a resolution is still possible, saying both nations could “work something out” in the long run.
The EU, now wedged between two economic giants, is treading carefully. German Finance Minister Joerg Kukies acknowledged that the bloc may be forced to respond if negotiations between the US and EU falter. He stressed that any response must be measured, given Europe’s complex trade relationship with the US—marked by a surplus in goods but a deficit in services.
Financial markets have not remained untouched. Gold prices surged to historic highs as investors fled to safety, highlighting growing fears that a prolonged trade standoff could trigger broader economic shocks.
