Back to today’s briefing

Story perspectives

China Hits Back: 34% Tariff on U.S. Goods Sparks Global Recession Fears

4/7/2025

48 5

Summary

Story summary

In a bold move, China has struck back at U.S. tariffs with a hefty 34% duty on American goods, mirroring Trump's recent increase. This tit-for-tat could shave up to 2.5% off China's GDP growth, raising alarms among experts about a looming global recession that threatens jobs and prices around the world.

History

Historical Context

China's recent 34% tariff on U.S. goods echoes the trade tensions that began in 2018 under President Trump. This trade war aimed to address trade imbalances but resulted in retaliatory measures and economic strain. Historically, such tariff disputes often lead to broader economic repercussions, as seen in the 1930 Smoot-Hawley Tariff, which worsened the Great Depression by stifling international trade.

1 of 2

Story summary

In a bold move, China has struck back at U.S. tariffs with a hefty 34% duty on American goods, mirroring Trump's recent increase. This tit-for-tat could shave up to 2.5% off China's GDP growth, raising alarms among experts about a looming global recession that threatens jobs and prices around the world.

1 / 2