The global trade war between the United States and China intensified sharply on Wednesday as former U.S. President Donald Trump announced a staggering 125% tariff on Chinese imports—up from a previously imposed rate of 104%. In swift retaliation, Beijing raised its own tariffs on American goods from 34% to 84% and issued a new blacklist targeting U.S. tech firms with alleged military ties to Taiwan.
Trump’s decision, revealed during a White House briefing, was accompanied by a temporary suspension of tariffs on dozens of other countries, an apparent strategic move to isolate China amid growing global economic tensions. The administration said the tariff pause applies to all non-targeted nations affected by the trade measures.
“These tariffs are necessary,” Trump said, “China’s continued disrespect for trade rules and their retaliation shows they’ve taken advantage of us for far too long. That time is over.”
Trump initially launched the tariff campaign in March, starting at a 10% baseline for all nations, with punitive rates reserved for what he described as “worst offenders.” China has faced a steady climb—from 10%, 20%, 54%, 104%, and now 125%—in what the White House frames as a direct response to Beijing’s countermeasures.
Beijing, in its response, decried the U.S. move as a breach of global trade norms. “The tariff escalation against China by the United States simply piles mistakes on top of mistakes,” China’s finance ministry stated. “It severely infringes on China’s legitimate rights and interests and damages the multilateral rules-based trade system.”
The new Chinese tariffs will take effect from 12:01 p.m. Thursday and apply broadly to U.S. goods, further straining an already tense economic relationship between the world’s two largest economies. Alongside the tariff hike, China’s Ministry of Commerce announced a ban on six U.S. artificial intelligence firms, including Shield AI Inc. and Sierra Nevada Corporation. The firms were accused of supplying arms to Taiwan or developing military technologies with the island.
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China’s move underscores its growing frustration over Washington’s military alliances in the Asia-Pacific and highlights how trade disputes are increasingly intertwining with geopolitical tensions.
Trump, however, remained defiant, claiming that over 75 countries had reached out to the U.S. seeking to negotiate terms and avoid being dragged further into the tariff crossfire. “At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A. and other countries are no longer sustainable or acceptable,” he said.
As global markets brace for ripple effects, analysts warn the prolonged economic standoff could disrupt supply chains, hike consumer prices, and stall international trade flows—especially in key sectors such as technology, agriculture, and manufacturing.
With no signs of either side backing down, the U.S.-China trade war appears headed into uncharted territory—one where tariffs, sanctions, and strategic blacklists could become the new normal in global economic diplomacy.