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On April 2, 2025, the Trump administration declared "Liberation Day",
imposing at least 10% tariffs on all imports and up to 54% on targeted countries.
While the official reason was to reduce trade deficits and protect manufacturing,
the move effectively rekindled trade tensions with China.
In response, China announced 34% retaliatory tariffs on April 4,
and the new chapter of the U.S.-China trade war began.
Compared to the first trade war of 2018–2019,
the 2025 conflict is more structural and strategic.
Factor | First Trade War | Second Trade War (2025) |
---|---|---|
Trigger | Trade deficit, tech theft claims | Global leadership, strategic supply chains |
Nature | Tit-for-tat tariffs | Geopolitics + Economics combined |
Targeted Sectors | Agriculture, electronics | AI, semiconductors, rare earths, energy |
Escalation | Gradual increase | Sharp, immediate high tariffs |
This isn’t just a U.S.-China conflict anymore.
The entire global economy is feeling the effects.
Key consequences:
Increased volatility in global stock markets
Reshaping of supply chains (U.S.-aligned vs China-aligned blocs)
Surge in commodity and tech component prices
Rising fears of global economic slowdown
Countries worldwide are no longer just bystanders —
they're actively realigning supply chains and alliances.
The U.S. is boosting domestic semiconductor and battery production.
China is accelerating its shift to a consumption-driven economy.
Europe and ASEAN are trying to maximize benefits from a neutral stance.
The 2025 U.S.-China trade war isn't a temporary skirmish.
It's the opening move in a long-term strategic competition
where economics, security, and technology are all intertwined.
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