The on-going US China trade war escalating global market turmoil. Both nations new retaliation tariff creating the outcome likely a recession. US and China tit-for-tat tariff could making the economy situation worse not just two nations but globally.
US Tariffs on imported goods from China
145% Tariff on Chinese Imports
A sweeping 145% tariff has been imposed on Chinese goods, some says they are making a joke in the history.
Additional 10% Tariff:
An extra 10% tariff on all Chinese imports took effect on March 4, 2025. Now increasing that tariff from 10% to 20% on all Chinese imports.
25% Tariffs on Key Sectors:
Plans are underway to impose 25% tariffs on imports of automobiles, semiconductors, and pharmaceuticals, and there is no guarantee that it will not increase in the later.
Most of the import are smartphones which made up in China, imported in US. The sharp decline of market after smartphone are restricted by China because 9% out of 13% share is taken by smartphones.
China’s Retaliatory Measures
In response to U.S. tariffs, China has implemented a series of countermeasures:
125% Tariffs on U.S. Goods:
China has raised tariffs on American goods to 125%, targeting a larger range of the American imports which is quite painful for the market.
Agricultural Tariffs:
Effective March 10, 2025, China imposed a 15% tariff on key products of U.S. imports of chicken, wheat, corn, and cotton, these are the daily essentials. More agricultural products are targeted with 10% tariff on soybeans, pork, beef, seafood, fruits, vegetables, and dairy products.
Export Controls and Blacklisting:
China has also added several U.S. companies to its “unreliable entity list,” meaning that China is restricting their ability to engage in trade with Chinese firms which is ignite many experts and analyst as they seen the economic disaster ahead.
WTO Officials said that “Trade war between US and China could severely damage global economic outlook.” The trade between the Two economies added up to about $585 billion last year, added Mint.
Read also: US China Trade War sustain
Escalating US China Trade War Impact
- S&P 500 experienced largest fall down since 2020 pandemic.
- Analysts warn that the tit-for-tat tariffs could push major economies toward recession, as the on-going conflict slowdown economies.
- Investors are moving out their money because of the uncertainty of market due to US China Trade war they want to invest on safe asset, safe havens like gold.
Conclusion
US China Trade war escalating the global market turmoil, experts warn the tit-for-tat tariffs will bring down the economies towards recession. Some of the countries choose to negotiate with Trump Tariff and Trump pause his new tariff policy on other countries but continuously imposing more Tariffs on Chinese Goods.
This is not just trade conflict concern over market as seen but a political aggression between the two nations.
