Sana’a – Saba News Agency | Report by: Fatima Hashim
It’s as if the world is standing on one foot, watching the escalating tariff war between China and the United States, after both countries imposed massive reciprocal tariffs. This reflects the volume of trade between the two nations and raises many questions and concerns among observers.
According to trade literature and media reports, the economic conflict between the two countries dates back to January 2018. That’s when then-President Donald Trump, during his first term, began imposing tariffs and other trade barriers on China, aiming to force it to make changes to what the U.S. described as long-standing unfair trade practices.
Trump’s administration argued that such practices contributed to the U.S. trade deficit with China and that the Chinese government was demanding the transfer of American technology.
In response to U.S. trade measures, the administration of Chinese Communist Party Secretary-General Xi Jinping accused Trump’s administration of engaging in nationalist protectionism and took retaliatory steps.
After the trade war intensified in 2019, both parties reached a tense “Phase One” agreement in January 2020.
By the end of Trump’s first term, the trade war was widely described as a failure for the United States, according to reports.
President Biden’s administration maintained the tariffs and even added more on Chinese goods such as electric vehicles and solar panels.
In 2024, Trump’s presidential campaign proposed a 60% tariff on Chinese goods.
On February 1, 2025, the Trump administration raised tariffs on China by 10%, followed by another 10% increase on March 4.
In response, on March 10, China imposed a 15% tariff on American goods, including agricultural products.
On April 2, 2025, the Trump administration raised total tariffs on imports from China to 54%. China, in turn, pledged to retaliate.
The year 2025 witnessed an escalation of the conflict through a series of tariff hikes by the United States, culminating in a 145% tariff on Chinese goods. In return, China imposed a 125% tariff.
China filed a complaint with the World Trade Organization (WTO) against the latest U.S. tariff hikes, calling on other affected countries to join its efforts against what it described as U.S. violations of WTO regulations.
China’s Ministry of Finance announced that Beijing would impose 125% tariffs on U.S. goods starting this week, up from the 84% previously announced.
The Chinese Ministry of Finance also threatened countermeasures in response to Washington’s actions, vowing to "fight to the end."
Trade between the two countries has witnessed remarkable growth from 1985 to 2024. In 1985, China’s exports to the U.S. were about $3.86 billion. By 2023, exports had soared to around $427 billion.
According to the U.S. Census Bureau, U.S. imports from China during the first two months of 2025 totaled about $73 billion, while exports to China amounted to about $20 billion. The total trade volume (imports and exports) between the two countries reached $583 billion in 2024, up from $575 billion in 2023. For comparison, trade volume in 1999 was just $95 billion.
According to media sources, China’s main exports to the U.S. include electronics such as smartphones, televisions, laptops, clothing and textiles, toys, and household appliances. Meanwhile, China’s key imports from the U.S. include agricultural products, aircraft and parts, pharmaceuticals and medical supplies, crude oil, and natural gas.
Currently, economic tensions between the two countries have escalated dramatically. Experts assert that these measures will certainly increase tension between the two economic giants.
In conclusion, “It is not unlikely that this trade escalation between the two countries will lead to further deterioration in relations, ultimately affecting global interests and potentially triggering a global economic earthquake, which we certainly hope to avoid,” said one observer.
E.M
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