US-China Tariff War / Now China will charge 125% tariff from America, Trump had imposed 145% duty on Dragon

US-China Tariff War: The international business world is once again worried due to the growing tariff war between the two economic superpowers—the US and China. This war is not only affecting the bilateral trade of the two countries, but is also casting a deep shadow on the global supply chains and investment environment.

America's tough stance: 145% tariff announced

On Thursday, the US announced to increase the tariff on goods and services imported from China to 145 percent. This move is a clear indication of America's aggressive policy against China, which has been continuing since the era of former President Donald Trump. The US argues that China is taking unfair advantage in trade and harming the American market.

China's response: 125% tariff and complaint in WTO

In response to this US decision, China also increased the tariff on products imported from the US to 125 percent with immediate effect on Friday, which was earlier 84 percent. China's Commerce Ministry clarified that this move is a retaliatory action and China will make every effort to protect its trade interests. Along with this, China has also filed an official complaint against the US in the World Trade Organization (WTO).

China became a lonely but vocal opponent

Interestingly, China is the only country so far that has openly taken retaliatory steps against US tariffs. Earlier, China had not only imposed an 84 percent tariff, but also banned the import of products of some American companies. However, China had also expressed its willingness to negotiate to resolve this entire dispute.

Start of the tariff war: Trump era policies

This tariff war began during the tenure of former President Donald Trump, when he imposed a 34 percent tariff on China. In response, China also imposed an equal tariff. Since then, this tariff war has been continuously intensifying. Trump later threatened China that if the retaliatory tariffs were not removed, the tariffs would be increased to 84 percent. China refused to back down, and the dispute has reached 145 vs 125 percent today.

Potential impact on the global economy

The impact of the tariff war is not limited to the US and China. It can affect the entire world trade. Increased import-export costs, investor uncertainty, and market volatility are some of the potential consequences. Many multinational companies may have to restructure their supply networks.

Will the dispute move towards a solution?

Even though both sides have imposed tough sanctions on each other, some analysts believe that this could be a strategic move to create a better bargaining position at the negotiating table. If this is the case, high-level talks could take place between the two countries in the coming weeks.