The United States has sharply escalated its trade confrontation with China, announcing tariffs of up to 245% on Chinese imports—a move the White House describes as a direct response to Beijing’s retaliatory actions and ongoing trade tensions between the world’s two largest economies.

Details of the Tariff Escalation

The White House confirmed Tuesday that the new tariff regime, which marks a dramatic increase from the previous 145% rate, is intended to counter what it characterizes as China’s unfair trade practices and retaliatory tariffs on U.S. goods. President Donald Trump authorized the measure after ordering an investigation into the national security risks posed by U.S. dependence on imported, processed critical minerals and derivative products—materials essential for smartphones, electric vehicle batteries, and military equipment.

The administration’s fact sheet stated, “China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions,” underscoring the administration’s view that the escalating trade war is a consequence of China’s own countermeasures. Prior to this, China had already imposed tariffs as high as 125% on American goods, and banned exports of certain products vital to U.S. aerospace and defense industries.

U.S. Rationale and Political Messaging

President Trump’s executive order cited concerns that reliance on foreign sources for critical minerals “raises potential for risks to national security, technological growth, and economic prosperity”. The administration has made clear that the responsibility for resolving the dispute lies with Beijing. White House Press Secretary Karoline Leavitt stated, “The ball is in China’s court. China needs to make a deal with us. We don’t have to make a deal with them,” reiterating that the U.S. remains open to negotiations, but only if China engages constructively.

China’s Response

China’s official reaction has been measured but firm. At a press briefing, Foreign Ministry spokesperson Lin Jian declined to confirm the specific tariff figures, urging reporters to “ask the US side for the specific tax rate figures”. Lin reiterated China’s longstanding position that it does not want a trade war but is not afraid to fight one if necessary, emphasizing that “tariff and trade wars have no winner”. He called on the U.S. to abandon “extreme pressure” and threats, and to engage in dialogue based on equality, respect, and mutual benefit.

Despite the trade tensions, China reported robust economic data for the first quarter, with GDP growth of 5.4%, industrial output up 6.5%, and retail sales rising 4.6% year-on-year. This performance is seen as a signal of resilience amid mounting external pressures.

Global and Economic Impact

The rapid escalation in tariffs is unprecedented in recent decades, with analysts warning of significant shocks to both economies and the global trading system. The tit-for-tat measures threaten to disrupt supply chains, raise costs for manufacturers and consumers, and deepen the geopolitical divide between Washington and Beijing. Some experts suggest that the current trajectory could lead to a “hard decoupling,” where trade and investment between the two countries are severely curtailed.

Outlook

While the U.S. has temporarily paused similar tariffs for 90 days with over 75 other countries to facilitate trade negotiations, China remains excluded from this pause due to its retaliatory stance. Both sides have left the door open for talks, but with neither backing down, the prospect of a near-term resolution appears remote. The world will be watching closely as the economic and political ramifications of this trade escalation continue to unfold.