US-China Trade Tensions Surge Amid New Tariff Impositions

In response to President Donald Trump's imposition of 34% tariffs on Chinese imports, China pledged countermeasures to safeguard its interests. Trump's tariffs are part of a trade policy overhaul, while China plans retaliation and legal action through WTO. The escalating trade war affects significant export markets and industries in both countries.

In a dramatic escalation of trade tensions, China vowed swift countermeasures following President Donald Trump's announcement of substantial tariffs on over USD 438 billion in Chinese imports. Thursday saw China responding resolutely to the tariffs, which form a significant part of Trump's 'Liberation Day' trade overhaul.

The newly announced 34% tariffs, unveiled on Wednesday, add to the existing 54% levies on Chinese goods, sparking concerns over their impact on US industries and consumers. Trump hinted at possible tariff reductions conditional on China supporting a divestment deal for TikTok. In retaliation, China imposed a 15% tariff hike on American products and initiated action at the WTO, including placing ten US firms on its unreliable entity list.

As tensions rise, the global market closely watches these developments, with the trade exchange between these nations tallying a USD 295 billion deficit for the US in 2024. Both countries remain at an impasse, with China asserting that such protectionist measures are futile and detrimental to both economies.

(With inputs from agencies.)