Mounting global costs of the US-China tariff war

THE United States and China remain locked in a tariff standoff, with neither side willing to de-escalate.

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Following President Donald Trump's decision to impose 145% tariffs on Chinese imports in April, Beijing retaliated with 125% tariffs on US goods. Despite rising economic strain, communication between the two superpowers has stalled. Treasury Secretary Scott Bessent claims the ball is in China's court; meanwhile, China's Foreign Ministry confirms no current talks are underway.

The notion of economic decoupling between the world's largest economies is no longer theoretical-it is unfolding in real time. While some speculate about a potential "winner," the reality is more sobering: both sides, and the global economy at large, are incurring serious costs.

Trump's protectionist push has extended beyond China, targeting both allies and rivals. However, China remains the central focus, absorbing the brunt of US frustrations over trade deficits and domestic economic displacement. The consequences for China are clear. Its export-driven industries are suffering from lost access to the US market and growing uncertainty in global trade.