This weekend, key discussions between American and Chinese representatives are set to take place in Switzerland, marking a significant moment in the ongoing trade war that has unfolded over the past three months. The conflict has seen a series of punitive tariffs imposed by both nations, severely impacting exporters and exerting pressure on their respective economies.
Currently, the United States and China face record-high tariffs on each other’s goods, with U.S. tariffs on Chinese imports reaching an unprecedented 145%, while China’s retaliatory tariffs on American products stand at 125%.
President Donald Trump has expressed optimism that the upcoming talks could lead to meaningful progress, indicating his willingness to significantly reduce tariffs if China is willing to compromise. However, China continues to call for a removal of the U.S. tariffs as a precondition for any successful negotiations.
The escalation of tariffs began at the start of Trump’s second term, with significant developments outlined below:
On February 1, 2025, President Trump signed an executive order imposing 10% tariffs on Chinese goods and 25% on products from Mexico and Canada. However, a 30-day delay was granted for the tariffs affecting Canada and Mexico.
A few days later, on February 4, the 10% tariffs on Chinese imports came into force, prompting a swift reaction from China, which announced retaliatory measures including duties on American coal, liquefied natural gas, and agricultural machinery.
The conflict intensified on March 4 when President Trump increased tariffs on Chinese imports by an additional 10%, bringing the total to 20%. In response, China imposed tariffs of up to 15% on crucial U.S. agricultural products like chicken, pork, soy, and beef, while also expanding business restrictions on prominent U.S. companies.
The retaliatory measures from China came into effect on March 10, further straining trade relations.
On April 2, Trump’s so-called “Liberation Day” saw the announcement of further sweeping tariffs, with a 34% increase on Chinese goods set to commence on April 9, along with tariffs on products from various countries.
China retaliated on April 4 by announcing 34% tariffs on all American imports, scheduled to begin on April 10. The country also implemented additional countermeasures, such as export controls on rare earth minerals and suspending imports of sorghum, poultry, and bonemeal from several U.S. firms. Additionally, China launched an anti-monopoly investigation into DuPont China Group, a subsidiary of the American company DuPont.
In a subsequent escalation on April 7, President Trump threatened China with even higher tariffs of 50% on any goods if it did not reduce the existing 34% tariffs.
On April 9, the U.S. implemented the “Liberation Day” tariffs, raising duties on Chinese imports to an initial level of 104%. In response, on April 10, Beijing imposed 84% duties on American goods.
Shortly thereafter, the U.S. increased all tariffs on Chinese products to a staggering 145%, with immediate effect. In a final retaliatory move, China increased tariffs on U.S. products to 125%, stating that this would be the peak of its response.
In early May, on the 6th, the Trump administration announced that Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer would convene in Geneva for discussions with Chinese delegates, led by Vice Premier He Lifeng. These high-stakes negotiations aim to address the significant economic and trade tensions exacerbated by the tit-for-tat tariff battle.