The global economy is on the edge; where will the tariff duel between Trump and Xi end?
US President Donald Trump rekindled global trade tensions on April 2, 2025 (13 Farvardin 1404) by announcing a 10% base tariff on all goods imported into the country, a decision that was once referred to as “Freedom Day” and sparked widespread reactions.
After Trump’s announcement, some countries and global players were severely affected by the tariff war. For example, the European Union faced a 20% tariff, while countries such as Vietnam (46%), Bangladesh (37%), Cambodia (49%), Malaysia (24%), China (34%), Taiwan (32%), Japan (24%), and Lesotho (50%) were severely affected.
Amidst these reactions, China’s response to the imposition of tariffs of more than 100% was very decisive. Just a week later, Trump backed down from imposing tariffs on countries around the world and announced that he would suspend the imposition of tariffs on more than 75 countries for 90 days.