China’s Ministry of Foreign Affairs responded to the White House’s announcement of potential tariffs of up to 245 percent on Chinese exports, stating they will not engage in President Trump’s “tariff numbers game.” The White House revealed these new tariff rates in a fact sheet, including a 125 percent tariff and a 20 percent tariff imposed due to allegations of China not curbing fentanyl exports. China’s response to these escalating tariffs has been dismissive, with the Ministry of Finance calling them a “joke” with little economic significance.
Amidst this trade tension, economists have warned that these tariffs could effectively halt trade between the US and China due to increased costs. The World Trade Organization projected a decline in global trade volume by 0.2 percent in 2025 under current conditions, which could worsen if reciprocal tariffs are fully implemented. The United Nations’ Trade and Development office also revised its global growth forecast downward, citing a potential global recession if growth falls below 2.5 percent.
China has responded to these challenges with tariffs on US goods, as well as other punitive measures like limiting the release of Hollywood films. The back-and-forth of tariffs and trade tensions between the US and China is creating uncertainty in the global economy, with experts warning of negative repercussions on both countries and the rest of the world. As both sides continue to take aggressive trade actions, the consequences for the global economy remain uncertain.
Note: The image is for illustrative purposes only and is not the original image of the presented article.
