Tariff war escalates: China retaliates with 125% tariffs on US goods, as Xi Jinping warns of "self-isolation" for America
By ljdevon // 2025-04-14
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  • China raises retaliatory tariffs on US imports to 125% in response to Trump's 145% duties on Chinese goods.
  • Chinese President Xi Jinping warns that the US risks isolating itself by pursuing unilateral trade restrictions.
  • The trade dispute has disrupted global markets, sent oil prices to four-year lows, and raised concerns over global supply chains.
  • The EU has adopted a "de-risking" policy towards Chinese imports, balancing protective measures with constructive economic relations.
In a move that further intensifies the ongoing trade war between the world's two largest economies, China has announced it will raise retaliatory tariffs on select US imports from 84% to 125%. This escalation comes in direct response to the United States' recent decision to impose a 145% duty on Chinese imports, marking a significant escalation in the trade dispute that has already disrupted global markets and supply chains. The announcement, made by Beijing’s State Council Tariff Commission, underscores the deepening tensions between the two nations. The trade war, which began under the Trump administration, has seen a series of tit-for-tat tariff increases, with each side attempting to leverage economic pressure to gain concessions from the other. In the dispute, Chinese President Xi Jingping believes the US will "isolate itself."

A history of trade tensions

The roots of the current trade conflict can be traced back to the early days of the Trump presidency, when the then-President frequently criticized China for what he described as unfair trade practices. Trump argued that China had been exploiting the United States through lopsided trade deals, leading to the erosion of American manufacturing jobs and a significant trade deficit. In a speech given in Pennsylvania in June 2016, Trump pledged to penalize China and renegotiate these unfavorable pacts, vowing to bring manufacturing back to the US. However, the reality of the situation is more complex. For decades, China has played a crucial role in the globalization of consumer products, providing the West with cheaply made goods that have fueled economic growth and consumer spending. American businesses have profited handsomely from this arrangement, and the low-cost labor in Chinese factories has kept prices down for consumers. The question remains: if these goods were to be manufactured in the US, would there be a workforce willing to work in these factories for the low pay? The answer, for many, is no.

Xi Jinping's warning: self-isolation and unilateralism

Chinese President Xi Jinping, speaking during a visit by Spanish Prime Minister Pedro Sanchez to Beijing, warned that the United States risks isolating itself by pursuing unilateral trade restrictions. "There are no winners in the tariff war and standing against the world ultimately results in self-isolation," Xi said, as cited by Xinhua news agency. He called on China and the European Union to "jointly resist unilateral bullying" in order to protect their legitimate rights and interests and uphold international rules and order. The EU, which has also been targeted by US tariffs, has adopted a policy of "de-risking" towards Chinese imports. This approach balances protective trade measures, such as tariffs on electric vehicles, with efforts to maintain constructive economic relations. The EU has warned of significant global economic repercussions and has vowed to take countermeasures, further complicating the international trade landscape. Xi Jinping's warning is a bit farfetched, considering that the US is reconnecting, re-engaging with other nations, and building mutually beneficial trade relationships. America's leaders have a duty and a right to pursue these goals - no matter the conflict.

Economic consequences and global impact

The trade dispute between the US and China has had far-reaching consequences. Global markets have been disrupted, with oil prices dropping to four-year lows. Supply chains have been thrown into disarray, and businesses around the world are grappling with the uncertainty of fluctuating tariffs and trade policies. The International Monetary Fund (IMF) has warned that the trade war could shave 0.5% off global GDP growth, a significant impact in an already fragile economic environment. Despite the tensions, there are those who argue that the US should not back down from its efforts to address trade imbalances. The challenge, however, is finding a way to achieve this balance without resorting to punitive tariffs that ultimately harm consumers and businesses on both sides. The US, under Trump’s tariff renegotiation plan, could help bring some businesses and industries back to the US, but it is a complex and contentious path. As the trade war continues to escalate, the question remains: can the US and China find a way to coexist and trade peacefully, or will the cycle of retaliation and economic pressure continue to spiral out of control? The answer may lie in a willingness to engage in constructive dialogue and a recognition that, in a globalized world, the prosperity of one nation is often intertwined with the prosperity of others. Xi Jingping is in no position to dictate whether the US will be isolated, as American leaders debate the future of its economic relations. Source include: RT.com Enoch, Brighteon.ai RT.com
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