President Trump announced sweeping new tariffs on Chinese imports, triggering an immediate pledge of counter-measures from Beijing and raising fears of a fresh trade war.
> At a Glance
> – Trump signed an order for 25% tariffs on all Chinese goods effective immediately
> – China’s Foreign Ministry vowed “countermeasures” within minutes
> – Global markets wobbled as traders priced in the risk of escalating tensions
> – Why it matters: Higher import taxes could raise U.S. consumer prices and upend supply chains already strained by inflation
The move revives the tariff battles of 2018-19 and puts the world’s two largest economies on a collision course less than two months after Trump returned to the White House.
The Announcement
Speaking in the Oval Office, Trump framed the decision as a bid to protect American jobs:
> “We are implementing a 25 percent tariff on all imports from China effective immediately.”
He gave no end date, saying only that tariffs will stay until Beijing addresses long-standing grievances over trade imbalances and intellectual-property theft.
Immediate Chinese Response
China’s Foreign Ministry fired back within the hour:
> “This action violates international trade agreements. We will take countermeasures.”
Officials did not specify the form of retaliation, but state media hinted at higher duties on U.S. soybeans, aircraft, and semiconductors-mirroring Beijing’s playbook from the first trade war.
What Happens Next
Markets reacted swiftly:
- The S&P 500 dropped more than 2% in after-hours futures trading
- Yields on 10-year U.S. Treasuries fell as investors sought safe assets
- The offshore yuan weakened past 7.25 per dollar, its lowest level this year
Key Takeaways
- 25% tariffs on all Chinese goods began immediately
- Beijing promised swift countermeasures but gave no timeline
- U.S. consumers could face higher prices on electronics, apparel, and autos
- Trade-war déjà vu rattles global markets and supply chains
With neither side showing signs of backing down, businesses are bracing for another round of tit-for-tat duties that could define Trump’s second-term economic agenda.
