Where things stand in the US-China trade war

Beijing: US President Donald Trump increased its trade war against China, further increasing imports in Beijing to 125% despite their cessation for other countries.

The move came a few hours after the announcement of mutual action against the United States in response to a previous hike.

AFP It examines how the escalated trade war between the world’s two largest economies plays – and what impact it can have:

What actions have trump up so far?

Trump said on Wednesday that the US would increase invoices to Chinese imports to a stunning 125%, reporting “lack of respect” from Beijing.

The announcement came as Mercurial’s president announced to invoices for other nations for 90 days after panic in the world markets.

The new contribution to China marked the latest salad in a trade war for the preparation of the trade war between the two global superpowers.

A previous round of US invoices had come into force earlier on Wednesday, abolishing China’s duties at 104%.

In addition to general contributions, China is also at specific prices in the imports of steel, aluminum and cars.

How did China answer?

China has promised to combat “until the end” measures and has so far revealed mutual invoices every time Trump has increased Ante.

Responding to 104% on Wednesday, Beijing said it would increase its own invoices to US imports from 34% to 84%, effective from Thursday.

He also said that he had filed a complaint to the World Trade Organization (WTO), citing “bullying” tactics by Trump’s administration.

China had not responded to the latest increase in invoices to 125% of contributions since Thursday morning.

But his countermeasures have begun to get out of the economic sphere, with government departments warning citizens of “dangers” traveling to the US or studying parts of the country.

And while Beijing threw the US with fiery rhetoric, it continued to encourage the “equal dialogue” to resolve the commercial spit.

Zhiwei Zhang, head of Pointpoint assets management, said China had sent a “clear signal” that it would not retreat, adding that there was “(not) quick and easy outlet of the conflict.

Haibin Zhu, China’s leading economist in JP Morgan, agreed, saying that “the bar for a possible deal is high.”

Why is China so vulnerable to invoices?

The trade between the two largest economies in the world is huge.

Sales of Chinese goods in the US last year amounted to more than $ 500 billion – 16.4% of the country’s exports, according to Beijing Customs.

And China introduced $ 143.5 billion to goods from the United States in 2024, according to the US Commercial Representative office.

This trade was dominated by agricultural products, mainly olive seeds and seeds, according to the US-China business council. Oil and gas, medicinal products and semiconductors are also included in major US exports to China.

Beijing has long pulled Trump’s rage with a trade surplus with the United States that reached $ 295.4 billion last year, according to the US Department of Commerce Bureau.

Chinese leaders were reluctant to disrupt the status quo, partly because the country -based economy is particularly sensitive to adversity in international trade.

US duties also threaten to harm China’s fragile economic recovery, as it is struggling with real estate debt crisis and persistently low-consumption-Beijing’s decline had sought to slow down in wide fiscal stimulus last year.

However, an intensive trade war will probably mean that China cannot fly its hopes of strong economic growth this year in its exports, which reached a record in 2024.

What impact will US invoices have?

The WTO leader said on Wednesday that the US-China invoice war could reduce the trade of goods between the two countries by 80%.

As the two economic giants represent 3 % of world trade, the conflict could “seriously harm global economic perspectives,” said Ngozi Okonjo-Iweala.

Analysts expect the contributions to get a significant part of the Chinese GDP, which Beijing’s leadership hope will rise by five percent this year.

It is likely to hit harder is China’s top exports to the United States – all from electronics and machinery to textile products and clothes, according to the Peterson Institute of International Economy.

And because of the critical role played by Chinese goods in providing American businesses, invoices can also harm American manufacturers and consumers, analysts have warned.

Paul Ashworth, chief economist at North America at Capital Economics, said it was “difficult to see the two sides support in the coming days”.

But, he added, “talks will eventually happen, though a complete reinstatement of all additional invoices … seems unlikely.”