Asia Program - The Sixteenth Council

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The U.S.-China Trade War in 2025: A New Chapter in Economic Confrontation

After Donald Trump returned to the presidency in January 2025, he reignited his administration’s protectionist trade policies under the banner of “America First.” Central to this approach is the aggressive use of tariffs, taxes imposed on imports to curb trade deficits, promote domestic manufacturing, and punish what Trump calls “unfair trade practices,” particularly by China.

The Costs of America’s New Trade Strategy

At the heart of this policy is a 10% baseline tariff on imports from 185 countries, amplified by exponential penalties on selected geopolitical and economic adversaries. Chinese goods now face a total of 104% in tariffs, a staggering figure that underscores the combative mood in Washington. The European Union, India, Canada, and Mexico have also been targeted with tariffs ranging from 15% to 26%, sparking widespread retaliation and diplomatic fallout.