By Alex 
In recent months, the United States and China have engaged in an escalating trade conflict, marked by a series of tariff increases and retaliatory actions. President Donald Trump has imposed a series of steep tariffs on Chinese imports, with the average effective U.S. tariff rate rising to an estimated 27% by April 2025. In response, China has taken a series of measures to counter these tariffs and protect its economic interests.
Trump’s Tariff Actions
Tariff Increases: Trump has raised tariffs on Chinese imports to as high as 145%, citing concerns over trade deficits and the need to protect domestic industries. He also imposed additional tariffs on steel, aluminum, and automobiles, affecting a broad range of Chinese goods.
Reciprocal Tariffs: On April 2, Trump announced a 10% tariff on all U.S. imports, effective April 5, and higher tariffs on imports from 57 countries. These measures have been met with significant criticism and have sparked retaliatory actions from trade partners.
China’s Retaliatory Measures
Tariff Retaliation: China has responded by imposing its own tariffs on U.S. goods. In February 2025, China imposed a 15% tariff on coal and liquefied natural gas, and a 10% tariff on crude oil and agricultural machinery. In March, China further increased tariffs on U.S. imports of chicken, wheat, corn, cotton, sorghum, soybeans, pork, beef, and other agricultural products.
Export Controls: China has also implemented export controls on certain metals, including tungsten and rare earths, which are critical to high-tech industries. This move is seen as a strategic response to the U.S. tariffs, as China is a major producer of these materials.
-Sanctions and Investigations: China has added several U.S. companies to its “unreliable entity list,” effectively banning them from trade with China. It has also launched antitrust investigations into some U.S. firms.
China’s Strategic Approach
China has adopted a measured and strategic approach in its response to the U.S. tariffs. While it has imposed significant retaliatory tariffs, it has also emphasized the importance of maintaining economic stability and avoiding unnecessary escalation. China’s Ministry of Foreign Affairs has called on the U.S. to correct its “wrongdoings” and maintain cooperation.
#### Impact and Future Outlook
The ongoing trade conflict has had significant economic implications for both countries. The tariffs have contributed to downgraded GDP growth projections by the Federal Reserve and the OECD. However, China has shown resilience in its response, leveraging its position as a major global exporter and consumer market to counter U.S. actions.
As the situation continues to evolve, both countries face the challenge of finding a balanced and mutually beneficial resolution to the trade conflict. China’s measured response and emphasis on cooperation suggest that it remains open to dialogue, while also protecting its economic interests.