The tension between Stati Uniti e Cina has reached a new peak. The Chinese government has announced an increase in dazi doganali on all goods imported from the USA, raising them from the previous 84% to an impressive 125%, effective starting Saturday. This is a direct response to the recent moves by the US administration, which has raised tariffs on Chinese products to the same level, in an attempt to exert greater commercial pressure.
Beijing, however, specified that this will be the last escalation: it does not foresee further increases in customs duties, emphasizing the desire to avoid an uncontrolled escalation in the ongoing trade war.
Risk of tariffs: Beijing relaunches in the commercial dispute
The increase announced by Beijing matches the tariffs already imposed by Washington, constituting an action of reciprocity. The Chinese Ministry of Finance emphasized that further measures by the USA will not be considered, as in their view “they would no longer have any economic logic, becoming just a paradox in the history of the global economy.”
China has also warned that, with tariffs at this level, there is no longer a true market for U.S. products in the Asian country. The willingness to withstand is clear:
“If the United States continues to substantially violate China’s interests, it will be ready to react firmly and fight until the end”.
Financial markets in turmoil due to the trade war between China and the United States
In view of the opening of the U.S. markets, the reaction of investors was not long in coming. The main indices, S&P 500 and Dow Jones, recorded a decline, extending the week of extreme volatility that hit the markets. The dollar also suffered a backlash, losing almost 2% against the euro immediately after the Chinese announcement.
The nervousness of investors reflects a growing uncertainty about the future direction of American economic policy, especially after the recent developments of the so-called “Liberation Day” tariff plan proposed by President Donald Trump.
Trump’s Change of Course
A few days ago, Trump had announced a temporary easing of his trade policies, suspending for 90 days most of the tariffs included in the “Liberation Day” package. However, this suspension was not extended to China, on which the president decided to apply the same 125% tariff with immediate effect.
Motivating his decision with a message on social media, Trump accused Beijing of lacking respect towards global markets, reiterating the need to act resolutely to protect U.S. economic interests.
Debt pressures and market shocks
The tariff maneuvers have produced side effects also on the bond market. In recent days, analysts have recorded an anomalous surge in the yields of U.S. bonds, a warning sign in a sector historically seen as a safe haven in times of uncertainty. The massive sales of Treasury securities have led some experts to question the resilience of the dominance of American public debt.
In an attempt to calm the waters, Trump stated that the market reactions were exaggerated. He told reporters: “It seemed to me that investors were overreacting a bit, they were agitated, a bit too nervous.”
A war without winners?
The tariff escalation between China and the United States once again highlights how fragile the global economic balance is. The reciprocal actions demonstrate that both powers are willing to go all the way to defend their national interests, even at the cost of compromising market stability.
The declared goal of both countries is to achieve more advantageous conditions in international trade, but the concrete risk is that the clash turns into a destructive competition, without any clear winner. With penalized imports and nervous markets, the repercussions could extend well beyond the two main nations, also involving emerging economies and global supply chains.
Towards a new phase of the confrontation between China and the United States?
At the moment, China claims it does not want to go beyond the current level of tariffs, despite being willing to react harshly in case of provocations. The United States, for their part, seem to want to reserve a margin of maneuver between firmness and moderation.
What is clear is that the struggle between the two largest world economies is not just about the exchange of goods and customs percentages. At stake are strategic positions, geopolitical supremacy, and global financial balance. The future of this contest remains uncertain, but the next move could have significant implications not only for Washington and Beijing, but for the entire global economic system.