Escalating US-China Trade War: Tariffs Increase Amid Global Fears

In a significant escalation of existing trade tensions, steep tariff increases on Chinese imports have come into effect as of Wednesday. In response, China has announced its own tariffs on U.S. goods, raising concerns globally about the potential for a full-scale trade war. President Donald Trump has imposed a cumulative tariff rate of 125% on Chinese imports, with China responding by implementing an 84% tariff on all U.S. goods starting Thursday. This announcement followed Trump's introduction of additional tariff increases on the same day, alongside a temporary 90-day pause on other tariff actions. In 2022, imports from China accounted for 16.5% of the approximately $3.2 trillion worth of goods the U.S. imported, establishing China as America’s primary supplier. It also ranks as one of the largest import destinations for U.S. goods, with $150.4 billion exported to China that year. The current situation has created significant uncertainty in the stock market, with fears of inflation and potential recession looming large over investors. As these tariff changes take effect, U.S. consumers might notice price increases on everyday products. Below is an overview of notable imports and exports between the two nations. Smartphones and Electronics Dominate Chinese Imports Apple iPhone 16 on display at an Apple store in New York, April 4, 2025. According to a report from the U.S. Department of Commerce, mechanical appliances, sound recording devices, and televisions were among the most traded goods between the U.S. and China in 2022. Notably, machinery and mechanical appliances comprised 46.4% of all U.S. imports from China. With the initial tariff proposed to reach 54%, experts indicated that if Apple did not absorb costs, the price of an iPhone could soar to as high as $2,300, a scenario complicated by the new 125% tariff rate. Changes to De Minimis Exemptions for Online Orders <img alt="An employee prepares Shein packaging in a factory in Jiangsu province, China." width="960" class="rounded-lg" src="https://s.yimg.com/ny/api/res/1.2/sUsHTojUwZ5ELFB344q2Eg--/