In early 2025, President Trump reignited trade tensions by imposing nearly 40% tariffs on Chinese imports, aiming to curb the trade deficit and address concerns over fentanyl trafficking. China responded with retaliatory tariffs of up to 125% on U.S. goods, including agricultural products and crude oil .​

These actions led to significant market volatility, with investors seeking safer assets amid fears of inflation and recession . The U.S. administration also announced plans to stockpile critical minerals to reduce dependence on Chinese imports .

So, what did China do when Trump hit the trade button again in 2025? Well, they didn’t just sit back. In true tit-for-tat style, China hit back hard.

On Friday, China’s Customs Tariff Commission said it’s raising tariffs on U.S. goods from 84% to 125%, starting A ...