Thu Apr 10 13:38:27 UTC 2025: ## US-China Trade War Intensifies, Threatening Global Economy

**Washington/Beijing** – The escalating trade war between the United States and China is causing significant ripples across the global economy. The US has imposed a 104% tariff on certain Chinese imports, prompting China to retaliate with an 84% tariff on US goods, up from a previous 34%. This tit-for-tat escalation comes as the two nations, together accounting for 43% of global economic output (IMF, 2025 projection), are locked in a bitter trade dispute.

The impact is already being felt. US exports to China, which included a wide range of products from soybeans and petroleum to high-tech components like integrated circuits and CPUs from Intel (29% of its global revenue in 2024), declined 2.9% in 2024. Conversely, Chinese exports to the US, encompassing consumer goods, industrial components, and machinery, increased by 2.8%, widening the US trade deficit with China to $295.4 billion in 2024 – a 5.8% increase from 2023. Despite this, China remains the US’s third-largest trading partner.

The high-tech sector is particularly hard hit. The $10 billion annual US chip exports to China, including $8 billion in Intel CPUs, are facing significant tariff burdens. The agricultural sector is also suffering from China’s retaliatory tariffs, impacting major US firms like Caterpillar, Deere & Co, and AGCO.

Economists warn of broader global consequences. China’s substantial trade surplus, estimated at around $1 trillion, raises concerns about potential market flooding with inexpensive goods, potentially harming manufacturers worldwide. The overall trade dispute threatens to hamper bilateral trade, stifle global investment, and impede economic growth. The situation remains tense, with no immediate resolution in sight.

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