A significant escalation in trade tensions between the two largest global economies is on the horizon after U.S. President Donald Trump threatened to impose tariffs exceeding 100 percent on all Chinese imports starting April 9. In retaliation, China pledged to “fight to the end,” raising concerns about a potentially prolonged and detrimental trade war.

With bilateral trade projected to reach 585 billion dollars in 2024, the United States and China are closely connected economically. However, last year, the U.S. recorded a 295 billion dollar trade deficit with China—a statistic that Trump cites to justify his aggressive reciprocal tariffs. Chinese products such as smartphones, electronics, toys, and batteries could see significant price increases in the U.S., while American exports like soybeans and petroleum are likely to encounter substantial barriers in China.

The repercussions are anticipated to extend well beyond the two countries. Analysts caution about slower global economic growth, disruptions to supply chains, and rising consumer prices. Other nations may experience spikes in redirected exports, such as inexpensive Chinese steel, posing a threat to local industries and employment. The world now watches with concern as the standoff threatens to undermine the foundations of international trade.