A Bigger Bomb Than the Tariff War Is About to Explode in China
A Bigger Bomb Than the Tariff War Is About to Explode in China Executive Summary The US-China tariff war has entered an unprecedented phase in 2025, with the United States imposing tariffs of up to 145% on Chinese imports and China retaliating with 125% tariffs on American goods 3 4 5 . This escalation marks a dramatic intensification of trade hostilities, with both sides showing little willingness to compromise. The resulting economic fallout is already visible in China’s manufacturing sector, global supply chains, and the broader world economy 2 13 16 . This white paper examines the origins, current dynamics, and likely consequences of the exploding tariff war, focusing on its impact on China. Background: The Path to Escalation The US-China trade conflict began in 2018 when the Trump administration imposed tariffs on Chinese goods, citing unfair trade practices and intellectual property theft 3 . While a phase-one agreement was reached in 2020, tensions persi...