Synopsis : In just three months, US-China trade relations have plunged into a tariff war, pushing duties to record-breaking levels—145% on Chinese imports to the US and 125% on US goods entering China. The upcoming talks in Switzerland may offer a turning point.
Timeline of Turmoil : The Escalation of US-China Tariffs
The trade relationship between the United States and China has spiraled rapidly, with both economic giants imposing historic tariff hikes that have jolted global markets and disrupted major export sectors. As of May 2025, tariffs stand at 145% on Chinese goods imported to the US, while China has responded with 125% tariffs on American imports.
This extreme escalation comes amid a tense global economic backdrop and will be the central agenda as top US and Chinese officials meet in Switzerland this weekend. The negotiations aim to ease tensions, restore trade balance, and potentially unwind some of the harshest economic measures in recent history.
A Blow-by-Blow of the Tariff Escalation:
Feb 1, 2025: Trump triggers a new trade offensive, slapping 10% tariffs on Chinese imports, alongside duties on Mexico and Canada.
Feb 4: China's immediate counterattack targets US coal, LNG, and farm machinery with new tariffs.
March 4: Another 10% US tariff hike on all Chinese goods. China counters with tariffs on key US agricultural exports.
April 2 ("Liberation Day"): Trump announces a drastic 34% tariff increase on Chinese goods, set for April 9.
April 4: China mirrors the move with 34% tariffs and fresh restrictions on US tech and rare earth imports.
April 9-11: The tariff war peaks:
US tariffs surge to 104%, then to 145% in a matter of days.
China responds with 84% tariffs, then raises it to 125%, capping further escalation—for now.
May 6: The Trump administration signals a potential thaw, announcing trade talks in Geneva with Treasury and trade officials meeting their Chinese counterparts.
Global Repercussions:
Exporters on both sides face enormous challenges, with input costs skyrocketing and global supply chains under strain.
Asian and European markets are watching closely, wary of the ripple effects on trade-dependent economies.
Key sectors affected: Agriculture, automotive, tech, energy, and rare earth mining.
Will Switzerland Bring Peace?
As diplomatic delegations prepare for negotiations, President Trump has indicated he’s open to cutting tariffs significantly, but only if Beijing shows flexibility. China, meanwhile, is firm on its precondition—the removal of existing tariffs before any concessions are discussed.
Both nations face mounting pressure from their business lobbies and global allies to end the economic brinkmanship.
Disclaimer : This article is for informational purposes only. It does not constitute financial or trade policy advice. Readers should verify facts independently before drawing conclusions.
