US President Donald Trump has increased tariffs on Chinese products to 125%, up from 104%. He announced this on social media, explaining that he is pausing extra tariffs on other countries because they are willing to talk instead of fighting back. Trump criticized China for a “lack of respect.”
In response, China has placed tariffs of 84% on US goods. Since he took office in January, Trump has raised tariffs on China five times.
China has made it clear it won’t back down in this trade war, promising to fight hard. They have also filed a complaint with the World Trade Organization (WTO), accusing Trump of being a bully.
What might China do next? They could limit exports of rare earth minerals used in computers and electric car batteries, as they control a lot of the world’s supply. China might increase tariffs on US agricultural products and high-profile companies like Apple and Tesla, but they want to keep attracting investments.
Beijing could even ban American movies or products to retaliate. A recent editorial in China’s People’s Daily newspaper suggested turning this pressure into a chance to grow their own economy, focusing more on local sales.
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