• Mou Mou
• 05 Feb, 2025

With Donald Trump back in the White House the United States - China trade war has reignited. Trump has imposed a 10% tariff on Chinese goods and in retaliation China has announced new tariffs on American products. The global economy now faces rising tensions between the two superpowers.

New Tariffs Announced

China has responded to Trump's trade policies by imposing

- 15% tariff on US coal and liquefied natural gas (LNG)

- 10% tariff on crude oil, agricultural machinery and large engines.

These tariffs will be effective from February 10th.

China’s Strategic Moves

Apart from tariffs China is also tightening export controls on critical materials like tungsten, tellurium, ruthenium, molybdenum and bismuth - essential for solar panels, nuclear research and military weapons. Additionally Beijing has launched an investigation against Google, citing monopoly concerns.

Impact on the US Defence Sector

The US heavily relies on China for materials like tungsten and bismuth as their domestic production has stopped. If China restricts exports, it could severely impact US military manufacturing and industrial production.

Trump’s Aggressive Trade Policies

The Trump administration has accused China of illegally supplying fentanyl to the US market justifying the tariff hikes. However, financial experts suggest that Trump's trade war benefits his close allies who gain insider knowledge of stock market fluctuations.

Global Reactions & Concerns

- The World Trade Organisation (WTO) sees Trump’s tariffs as a violation of international trade rules.

- The US Congress is divided with some lawmakers calling Trump's actions unconstitutional.

- Trump has also threatened Canada, Mexico, the UK and BRICS nations including India with additional tariffs.

Read More: Retired Teacher Falls Victim to Digital Arrest Scam in Cooch Behar.

Possible Negotiations Ahead

A meeting between Trump and Chinese President Xi Jinping is expected next week, offering a chance for a resolution. China has delayed its tariffs for a week signalling room for negotiation. However uncertainty looms over global markets especially in Europe and Asia. 

The US-China trade war is more than just economic friction - it’s a geopolitical battle with far-reaching consequences. The world now watches as these two giants navigate their next moves.