On Monday, US President Donald Trump increased trade hostilities by threatening China with 50% more import duties. This action follows China’s 34% counter-tariffs on American goods in retaliation. Trump has given China until April 8, 2025 to drop its taxes, failing which the 50% higher tariffs will take effect on April 9.
Trade War between China and Trump 1. Trump’s Demand:
1. By April 8, 2025, China must remove its 34% tariffs.
If China fails to comply, additional duties of 50% will apply starting April 9.
Negotiations with China have ended, and the focus is now on other nations.
- China’s Retaliation:
o Effective April 10, additional duties of 34% are applied to U.S. goods.
Limits the export of rare-earth elements, such as gadolinium, samarium,
April 4 (Terbium, etc.). - Global Market Fallout: o Following Trump’s tariff announcements, stock markets see a decline.
· A focus on trade negotiations with allies like India.
Why Are China-United States Tensions Increasing?
Trump accused China of engaging in “unfair trade practices,” which included illicit company subsidies and currency manipulation.
• Applying retaliatory tariffs in spite of the United States’ record-high tariffs.
Trump, on the other hand, offered a 26% tax exemption on a few products, signaling closer ties with allies like India.