How Will China’s Economy Be Affected by 125% US Tariffs? What Next in Trump’s Trade War? CLRCUT

A full-scale economic confrontation has erupted between the US and China, marking the most intense phase of their trade war since 2018. US President Donald Trump has imposed sweeping 125% tariffs on a wide array of Chinese imports, citing China as the "biggest abuser in history." In response, Beijing has slapped retaliatory tariffs of up to 84% on key US exports, including soybeans, LNG, and automobiles, while threatening to restrict vital mineral exports. The escalating tit-for-tat measures—fuelled by political brinkmanship and nationalist rhetoric—have triggered global market jitters, raised fears of inflation, and disrupted critical supply chains. With bilateral trade in goods worth over $585 billion and industries deeply interlinked, the fallout could be far-reaching—affecting everything from American households to global semiconductor and electric vehicle production. While Trump pushes for a "universal baseline tariff" and the removal of China’s Most-Favoured Nation status, experts warn the real cost could be job losses, rising consumer prices, and a fractured global economy with “no winners, only damage.”