12.05.2025

The Escalating Trade Dispute Between the USA and China: Developments and Impacts

Current Developments in the Trade Dispute

Currently, there are no indications that the USA and China have reached a customs agreement. Instead, the trade dispute between the two countries continues to escalate.

Tariffs on Chinese Goods

The USA has repeatedly raised tariffs on imports from China. Most recently, a tariff rate of up to 145% was announced if China does not comply with US demands. On April 9, 2025, the tariff rate was increased to 125%.

Counter Tariffs from China

China has also imposed counter-tariffs on US products, most recently at a rate of 34%.

Reciprocal Tariffs

The USA has introduced “reciprocal” tariffs on imports from all countries to combat trade deficits. These tariffs generally amount to 10%, but can be higher for certain countries.

Impacts on Investors and the Economy

Market Developments

The ongoing trade dispute may lead to increased uncertainty in the markets, negatively affecting investments and economic growth.

Economic Forecasts

Increased tariffs may lead to higher prices for consumers and impair the competitiveness of businesses. This could affect inflation and economic growth.

Strategies for Investors

Private investors and savers should pay attention to developments in the trade dispute and adjust their investment strategies accordingly. Diversification and a clear risk assessment are crucial to minimize the impacts of the tariffs.

Global Trade Relationships

The trade dispute between the USA and China also affects other countries and trade relationships. An agreement could lead to the stabilization of global trade relationships, while an escalation could cause further tensions.

In summary, the trade dispute between the USA and China remains a central issue for investors and the global economy. An agreement could have positive effects, while an escalation continues to create uncertainty.