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.