The intensifying US-China trade war reached a new flashpoint this week as President Donald Trump’s administration imposed a staggering 245 percent tariff on Chinese imports, citing retaliation and mounting national security concerns. The White House announced the steep tariff hike Tuesday evening (India time), pushing the long-standing economic standoff between the two global giants into uncharted and volatile territory.
The move comes as Trump greenlit an official investigation into the national security risks posed by America’s dependence on foreign-sourced critical minerals and rare-earth elements — key ingredients in the manufacture of smartphones, electric vehicle (EV) batteries, and advanced military equipment.
White House Flags Critical Supply Chain Risks
According to the White House, Trump’s executive order highlights the United States’ vulnerability due to over-reliance on imported processed minerals such as lithium, cobalt, nickel, and other rare earths — many of which are sourced from or processed in China.
“This dependence on potentially unstable foreign suppliers raises the likelihood of long-term shocks to the supply chain, endangering both national security and economic prosperity,” the administration warned, underlining a familiar argument from Trump’s 2024 re-election campaign: the need for self-reliance and America-first industrial revival.
Tit-for-Tat Tariff War Spirals Further
This tariff escalation marks a sharp jump from previous rounds, where US duties on Chinese imports stood at 145 percent, while Beijing imposed a 125 percent tariff on American goods in retaliation. China had also earlier restricted the export of high-value items used by aerospace manufacturers and defense contractors.
On Wednesday, a senior Chinese official acknowledged that the US tariffs are putting significant economic pressure on China, but Beijing also sought to project economic resilience. China’s economy posted a stronger-than-expected 5.4 percent growth in Q1 2025, with industrial output surging 6.5 percent year-on-year and retail sales climbing 4.6 percent.
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Despite this growth, Chinese authorities have cautioned that the global economic landscape is becoming increasingly “complex and severe”, and more aggressive measures may be needed to sustain internal growth and boost domestic consumption.
Trump: “The Ball Is In China’s Court”
Speaking on the spiraling tariff battle, Trump doubled down on his stance, stating bluntly, “The ball is in China’s court. China needs to make a deal with us. We don’t have to make a deal with them.” This remark came just a day after the President accused Beijing of backing out of a multi-billion-dollar Boeing aircraft purchase agreement, intensifying tensions further.
Trump, who has long accused China, India, Brazil, and other nations of implementing unfairly high tariffs on American products, has used the trade war as a central theme in his drive to resurrect American manufacturing and reduce foreign trade dependence.
Timeline of Tariff Escalation
In line with Trump’s aggressive trade vision, the US has steadily increased tariffs throughout 2025, beginning with 10 percent baseline tariffs on Chinese imports in February and March and culminating in a 34 percent surge in April. By April 9, cumulative tariffs crossed 100 percent, triggering a sharp reaction from global markets and sending shockwaves through investor confidence.
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China responded by suspending imports of key American commodities like sorghum, poultry, and bonemeal, placing restrictions on 27 U.S. firms, and escalating the dispute to the World Trade Organization (WTO).
China Courts India and EU Amid Growing Isolation
With tensions unlikely to ease anytime soon, Beijing has sought to diversify its alliances. Last month, Chinese Foreign Minister Wang Yi urged India and the European Union to form a unified front against “hegemonism and power politics” — subtly referencing Washington’s aggressive tariff regime.
Wang’s poetic appeal for India and China to “make the elephant and dragon dance” signals Beijing’s effort to forge regional and global alliances as it faces mounting Western economic pressure.
The global economic order now watches closely as the April trade negotiations window narrows and both superpowers appear locked in a fierce contest — not just for tariff supremacy, but also for long-term technological and geopolitical dominance.
