US-China Trade War / America again drops tariff bomb on China, imposes 125% tax on the dragon

US-China Trade War: The trade war that has been going on for years between the US and China has now entered a new phase. US President Donald Trump recently announced to increase the tariff on products coming from China to 125 percent, which has also come into effect with immediate effect. This move is not only economic, but also a diplomatic signal that America will now put forward its priorities more clearly in global trade.

Trump's big announcement and sharp attack on China

Trump announced this tariff bomb on his social media platform 'Truth Social' and accused China of "lack of respect for global markets". He said in clear words that now America and its allies will not have to suffer economic losses from China. This aggressive strategy of Trump is the sequel of his "America First" policy, in which he considers America's economic sovereignty supreme.

Relief to allies, crackdown on opponents

With this tariff decision, Trump has also given temporary relief to more than 75 countries. He clarified that countries that are not taking any retaliatory action against the US will face only 10 percent tariffs for the next 90 days. Close trading partners like Mexico and Canada are included in this exemption. Treasury Secretary Scott Bessant said that during this 90-day period, the US will review trade rules and relations with partners.

Market reaction: Both apprehension and hope

Just hours after Trump's announcement, the US stock markets saw a strong jump. The 9 percent rise in NASDAQ and 8 percent rise in S&P 500 is an indication that investors are considering this move as a strategic victory in favor of the US. However, experts also believe that this situation may be temporary if China's response remains aggressive.

China's challenge: Preparing for a counterattack?

Earlier also, when the US increased tariffs, China not only increased the import duty on American goods to 84%, but also cautioned its citizens against traveling to America. Now once again America has alerted China by applying tremendous economic pressure. It is not clear at the moment what will be China's next move, but it is expected that it will either impose retaliatory tariffs or try to create diplomatic pressure against America on global forums.

Preparation to change the direction of global trade?

This new decision of Donald Trump has made it clear that his administration wants to move forward in a strict and clear direction instead of flexibility in global trade. Countries that want to trade with America with transparency and respect will get support, otherwise they will have to face strict economic sanctions. While America wants to protect its domestic industries with this policy, it can also become a new challenge for global economic stability.