US-China Trade War Escalates: Trump Raises Tariffs to Century High, Sparks Global Economic Tensions in 2025
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US-China Trade War Escalates: Trump Raises Tariffs to Century High, Sparks Global Economic Tensions in 2025
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President Trump’s second administration has adopted the most aggressive tariff regime in modern US history. According to Wikipedia’s overview of tariffs in the second Trump term, the average US applied tariff rate shot up from just 2.5% at the start of the year to a staggering 27% by April—the highest level in over a century. Despite this sharp increase, both Washington and Beijing showed some willingness to negotiate. By early May, China had exempted about $40 billion worth of American goods from tariffs, while the US had exempted roughly $102 billion of Chinese imports based on 2024 trade volumes. Yet, official talks repeatedly stalled as Beijing insisted the US roll back its tariffs first.
A major shift came in mid-May. US and Chinese officials, including US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng, met in Switzerland to open the doors for negotiation. By May 12, both sides agreed to a temporary, steep reduction in tariffs for 90 days—US tariff rates on certain Chinese goods dropped dramatically from 145% to 30%, while China trimmed its rates on targeted American imports from 125% to just 10%. The US also cut tariffs on Chinese shipments valued below $800 from 120% to 54%. Still, the Trump administration maintained a tough stance on enforcement, with the so-called “de minimis” exemption officially revoked for Chinese imports on May 2. Now, goods arriving via international mail face high, specific duties per item.
US Treasury Secretary Bessent, speaking to Fox Business, defended these heavy tariffs amid criticism from business groups and economists. He argued that the short-term pain—higher costs for some American consumers—is outweighed by long-term benefits like stronger US manufacturing and more domestic jobs. Bessent also pointed to record-breaking tariff revenue, with August alone seeing $31.4 billion collected, the highest monthly total in 2025, and $183.6 billion in revenue for the year so far.
Trump supporters and administration officials continue to frame these tariffs as both a diplomatic lever and a needed tool for US industry. However, legal challenges to Trump’s authority over trade policy persist. On August 29, a federal appeals court ruled that tariff power resides with Congress unless a law specifically enables presidential action. This ruling is under appeal, but for now, Trump’s tariffs—especially those targeting China—remain in force, at least through October 14.
That’s the latest on the US-China tariff front. This is a critical period for international trade and global manufacturing, and we’ll continue tracking every twist.
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