The White House dramatically escalated its trade confrontation with China late Tuesday, announcing that Chinese imports to the United States now face tariffs as high as 245%, a move officials say is in direct response to Beijing’s latest wave of retaliatory measures. The decision marks one of the most aggressive steps yet in the ongoing U.S.-China trade war, sending shockwaves through global markets and prompting urgent reactions from international stakeholders.

A New Peak in U.S.-China Trade Tensions

The White House statement followed a series of tit-for-tat actions that have rapidly intensified in recent weeks. President Donald Trump authorized the new tariffs after China imposed its own steep duties—raising tariffs on U.S. goods to 125% last Friday, following an earlier increase to 84%. The administration’s order also launched a national security investigation into U.S. reliance on imported critical minerals, including cobalt, lithium, nickel, and rare earth elements, which are vital for industries ranging from electric vehicles to military equipment.

“China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions,” the White House declared, underscoring the administration’s commitment to what it calls an “America First Trade Policy”. The statement noted that while over 75 countries have entered discussions for new trade deals with the U.S., the higher tariffs remain paused for those nations—except China, which has continued to retaliate.

The Escalation: How We Got Here

The latest escalation traces back to a series of reciprocal tariff hikes and export restrictions. Earlier this month, China banned exports to the U.S. of gallium, germanium, antimony, and other high-tech materials with military applications. Just this week, Beijing suspended exports of six heavy rare earth metals and rare earth magnets, further tightening the screws on global supply chains critical to automakers, aerospace manufacturers, semiconductor firms, and military contractors.

In response to the U.S. raising tariffs on Chinese goods to 145%, China’s Ministry of Commerce announced a 125% duty on American goods and expanded its export bans. The back-and-forth has created a climate of uncertainty for businesses and policymakers worldwide, with analysts warning that the trade war’s economic shocks could ripple far beyond the two superpowers.

National Security and Global Supply Chains

The White House’s latest order directs the Commerce Department to initiate a Section 232 investigation—under the Trade Expansion Act of 1962—into the national security risks posed by reliance on foreign sources of critical minerals. While China was not explicitly named in the investigation, it is the world’s dominant producer of many of the minerals under scrutiny, raising concerns about potential supply chain disruptions.

The administration’s move comes amid growing anxiety over the vulnerability of U.S. technology, defense, and energy sectors to supply shocks, especially as China expands its list of export restrictions and adds U.S. companies to its own sanction and “unreliable entity” lists.

Global Reactions and Economic Fallout

The scale of the new tariffs is unprecedented in recent history, with some categories of Chinese goods—such as syringes and needles—already facing combined tariffs of up to 245%. The sweeping measures have drawn swift condemnation from Beijing, which has filed formal complaints with the World Trade Organization and accused the U.S. of undermining the global trading system.

Economists warn that the escalating trade war threatens to “push a hard decoupling” between the world’s two largest economies, with potential to cut China’s exports to the U.S. by more than half in the coming years and inflict collateral damage on global supply chains. Despite the trade tensions, China reported robust economic growth in the first quarter, with GDP rising 5.4% year-on-year—a sign that Beijing may be bracing for a prolonged standoff.

What’s Next?

As the U.S. and China dig in for what appears to be a long and bruising trade conflict, the rest of the world is left to navigate the fallout. Many countries are seeking to negotiate exemptions or new trade deals with Washington, while multinational companies scramble to diversify supply chains and hedge against further shocks.

With both sides showing little sign of backing down, the prospect of a near-total decoupling of the U.S. and Chinese economies is moving from the realm of speculation to a real possibility—one with profound implications for global commerce, technology, and geopolitics.