There is no winner in a trade war, because sabotaging trade hurts both sides. “Killing 1,000 enemies while losing 800 of one’s own” — a Chinese saying for a scenario in which the cost does not justify the gain — is applicable in this case.

Despite the growing risk of economic recession at home, President Donald Trump has done nothing to prepare voters for the pain ahead. He is betting that the Federal Reserve will relax interest rates to mitigate the effect of tariffs, but monetary easing could also trigger an inflation spike.

Tariffs and a trade war are definitely going in the wrong direction. Trump and his team should cast aside all illusions that China will capitulate and that the U.S. can survive the tariff war. The only wise choice is to dump the tariffs and come to the table for talks.

Speculation about a "Grand Bargain" between Trump and Xi persists, but deep divisions within Washington, Trump’s erratic leadership, and Beijing’s long-term strategic patience make a major breakthrough unlikely. Even if a meeting occurs, structural mistrust and political instability on both sides suggest any deal would be fragile at best.

China has taken a tough stance against US President Donald Trump, matching the last two rounds of US tariffs with tariffs of its own. The US tariff on goods from China is now 145%, while China’s is 125%. Why does China take such a position, and are there any off-ramps that would allow it to mitigate the costs of a prolonged trade war?

For many nations, a highly profitable trade relationship with the United States is now no longer a given. With President Trump’s tariff agenda looming over the world, how is Asia planning for a future where the U.S. may not be so open for business?

The recent tariff episode shook global economic confidence in a way that’s only been seen in the aftermath of major catastrophes, despite relief coming in the short-term. Has the damage been done to America’s trade hegemony?

An estimate of the impact of the tariff war between China and the U.S. on the Chinese GDP in 2025 is presented. The dependence of the Chinese economy on its exports and, in particular, on its exports to the U.S. has been declining significantly over time. At the current tariff rates, a total cessation of bilateral trade is a real possibility. Under the assumption, the reduction in the rate of growth of Chinese GDP may be estimated to be 1.2%, other things being equal. Even though the announced target rate of Chinese growth is around 5%, the weighted average of the target rates of growth of the provincial-level units is 5.26%, indicating room for further increase. In addition, China is expected to launch additional domestic economic stimulus measures in response to the new tariffs, which should result in an additional growth of 0.5%. For 2025 as a whole, a rate of growth of around 4.5% (5.26 – 1.2 + 0.5) may be predicted.

His poorly conceived global tariff war will severely affect U.S. consumers, increase inflation, damage America’s reputation as a reliable partner and put the entire global trade system and practices that the U.S. once championed at risk.

The tariffs will not spell the end of alliances between the United States and Japan or South Korea, but they are likely to promote a strategic awakening in both countries and accelerate the integration process in East Asia.