NEW DELHI: The United States has imposed tariffs reaching up to 145% on Chinese imports. This move has prompted swift retaliatory measures from both China and the European Union (EU), signaling a deepening of the trade conflict among the world’s major economies.
The White House clarified that the new tariffs include a baseline 125% levy on Chinese goods, supplemented by an additional 20% “fentanyl tariff,” culminating in a total tariff rate of 145% on certain imports.
This decision is part of the administration’s strategy to address concerns over China’s trade practices and its alleged role in the fentanyl crisis. In 2024, the U.S. imported approximately $440 billion in goods from China, exporting over $143 billion, resulting in a trade deficit of $295 billion.
China’s Retaliatory Measures
In response, China announced a reverse 125% tariff on U.S. goods, targeting key sectors such as agriculture and energy. The Chinese government emphasized its readiness to implement “all necessary measures” to defend its economic interests.
Additionally, China has initiated export controls on critical minerals like tungsten and molybdenum, essential for various industries, and launched an antitrust investigation into U.S. tech giant Google.
European Union’s Response
The EU has also taken action, imposing 25% tariffs on over $22 billion worth of U.S. products, including soybeans, motorcycles, and beauty products.
The European Commission labeled the U.S. tariffs as “unjustified and damaging,” emphasizing the negative impact on both sides and the global economy.
French President Emmanuel Macron described the U.S. tariff pause as “fragile” and indicated that the EU is prepared to implement additional countermeasures if negotiations do not yield results.
As the trade tensions escalate, there is growing concern about the potential for a broader economic downturn. Analysts suggest that the ongoing disputes could force companies to reevaluate their global supply chains, with some considering shifts to countries like India and Cambodia. However, such transitions are complex and may not provide immediate relief.
The international community is closely monitoring the situation, urging all parties to engage in constructive dialogue to prevent further economic disruption. The coming weeks will be critical in determining whether a resolution can be reached or if the trade war will continue to intensify.
