Caixin Explains: Impacts of Trump’s Global Tariff War and What Comes Next

Trump’s sweeping tariffs affect billions if not trillions of dollars in trade and threaten to dampen growth globally

U.S. President Donald Trump holds a reciprocal tariffs poster during a tariff announcement in the Rose Garden of the White House in Washington, DC, US, on April 2, 2025. Photo: Bloomberg

President Donald Trump escalated his global trade war on April 2, imposing sweeping tariffs on all countries, disrupting world trade and sending shockwaves through the world economy.

Declaring a national economic emergency, Trump announced his long-threatened reciprocal tariffs of at least 10% on almost all goods shipped into the United States, with higher rates ranging from 20% to 46%, were imposed on 60 countries deemed the “worst offenders.”

The scope of these tariffs — affecting billions if not trillions of dollars in trade — far exceeded experts’ expectations.

China, one of America’s largest trading partners, will face new levies of 34%. Market analysts believe the economic impact on China from these tariffs will be greater than those in the trade war declared during Trump’s first term. White House officials confirmed that the new tariff will be added to the previous 20% levy, bringing the total to 54%.

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