The US-China trade war intensifies as President Trump raises tariffs, prompting China to retaliate with economic measures.
China Strikes Back with Tariffs and Trade Barriers
China imposed tariffs between 10% to 15% on US agricultural products like soybeans and lumber as part of its retaliation to Trump’s 20% tariffs on Chinese goods. China also blocked import licenses for major US exporters, including soy and meat suppliers.
Pressure on US Tech and Manufacturing
China has launched investigations against US tech giants like Google and Nvidia. Beijing also banned biotech products from Illumina and continues to pressure companies like Tesla and Apple, which heavily rely on China’s market.
Rising Chinese Markets as US Stocks Slide
Chinese stock indices are on the rise, contrasting with US markets which are sliding due to trade tensions. The MSCI China Index rose by 19%, while the S&P 500 entered a correction, and key US tech stocks continue to lose value.
China is ready to continue escalating the conflict using economic tools such as currency devaluation and rare earth export restrictions. The trade war could have long-lasting effects on the global economy.
