Summary
Trump escalated his trade war with China by raising tariffs to 125%, even as he dropped tariffs on other nations to ease recession fears.
China retaliated with 84% tariffs on U.S. goods, triggering a high-stakes standoff with both sides refusing to back down.
Experts warn the escalating tit-for-tat threatens global markets and diplomacy. Trump’s team calls China a “bad actor,” while Beijing frames the U.S. as a bully.
Each side believes time favors them, making de-escalation unlikely. Business leaders urge talks, but neither leader wants to appear weak.
He will backtrack when new inflation figures hit. It might take 3-6 months, but China definitely has the stronger hand, by far.
Trump can avoid the inflation by allowing Chinese goods to come through countries like Vietnam or Mexico. This is basically the status quo.
It allows Trump to save face without huge inflation for US consumers.
We pay tarrif based on country of manufacture not where it ships from. Trust me I’m looking everywhere for loopholes right now.
Correct, so what China does is ship almost completed stuff to Vietnam, they do the final piece of manufacturing and export that.
It’s not as easy as a transshipment, but for the longer term it works out.