The US-China trade war entered a dangerous new phase after the White House announced 25% tariffs on an additional $180 billion worth of Chinese goods including semiconductors, electric vehicles, and consumer electronics. Trade talks in Geneva had collapsed over disagreements on intellectual property enforcement and market access. President Biden defending the move said China continued to engage in unfair subsidisation and technology theft despite years of negotiations.
Beijing swiftly announced countervailing duties of 15-25% on American agricultural products including soybeans, corn, and pork, plus new restrictions on exports of rare earth minerals critical for US defence manufacturing. Financial markets reacted sharply, with the Dow Jones falling 2.1% and Asian equities declining across the board. The IMF warned the escalation could shave 0.5 percentage points off global GDP growth.
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