The ongoing trade tensions between China and the United States have escalated sharply in April 2025, rekindling a tit-for-tat trade war reminiscent of former U.S. President Donald Trump’s first term.
On April 3, 2025, Trump declared “Tariff Liberation Day”, announcing sweeping 34% tariffs on all Chinese imports, a move set to take effect on April 9. This comes on the heels of earlier tariffs of 10% on February 4 and another 10% on March 4, signaling a coordinated and aggressive trade strategy.
In response, China unveiled a series of retaliatory actions on April 4, showing clear strategic planning:
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A 34% tariff on all U.S. imports (mirroring the U.S. rate).
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More export controls on rare earth minerals, which are crucial for defense, electronics, and clean energy.
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A WTO lawsuit challenging the U.S. tariffs.
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Suspension of imports of sorghum, poultry, and bonemeal from several U.S. firms.
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27 additional U.S. firms added to China's restricted trading list.
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A new anti-monopoly probe into DuPont China Group Co.
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Tariffs of up to 15% on key U.S. agricultural exports like chicken, pork, soybeans, and beef.
These latest developments are rooted in a long and volatile trade history dating back to March 2017, when Trump first began targeting China for trade imbalances and alleged IP theft. Since then, multiple rounds of tariffs, bans (notably on Huawei), trade talks, failed deals (like the Phase One agreement in 2020), and fresh restrictions under Biden (especially in tech and EVs) have defined U.S.-China trade relations.
What makes this phase particularly volatile is the highly detailed nature of China’s retaliation, including targeted industry bans and regulatory probes—moves clearly designed to maximize pressure on U.S. exporters while protecting Beijing's own tech and industrial interests.
With global supply chains already stressed, the re-escalation could:
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Significantly disrupt bilateral trade in energy, agriculture, and tech.
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Further split the global tech landscape, especially around semiconductors and rare earths.
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Impact commodity prices and investor confidence.
The world now watches to see if this renewed trade war deepens or paves the way for fresh negotiations.
