On April 13, 2025, Reuters reported that Trump raised tariffs on Chinese imports to 145%, while China retaliated with 125% tariffs on US goods, effective from April 11.
The White House confirmed Trump has no plans to talk with Chinese President Xi Jinping, signaling his aggressive trade stance.
China’s Commerce Ministry vowed to “fight to the end” and banned exports of rare earth minerals, critical for US industries.
According to The New York Times, this caused a 3.5% drop in the S&P 500, with economists warning of rising inflation, which could drive up prices for US consumers on electronics and cars.
The trade war is making the $650 billion annual US-China trade “financially unfeasible,” with global markets also feeling the impact.