The trade relationship between the United States and China has entered a new phase of tension, marked by escalating tariffs and retaliatory measures. On Friday, China responded to U.S. actions by announcing a substantial increase in tariffs on U.S. imports, raising them to 125%. This move is the latest in an ongoing trade dispute with the United States under President Trump.

The United States, for its part, has already imposed tariffs on Chinese goods, reaching a total of 145%. President Trump has also indicated plans to further increase tariffs on Chinese imports to 125%. Additionally, there's a proposal for a temporary 90-day suspension of similar tariffs on other countries, with a reduction to 10% in most cases. A 20% tariff related to fentanyl concerns further contributes to the total tariff burden on Chinese goods, bringing it to 145%.

In 2023, China was the third-largest destination for U.S. exports, following Canada and Mexico. American companies exported $145 billion worth of goods to China, according to the U.S.-China Business Council. Data from 2022 indicates that U.S. exports to China supported over 931,000 American jobs, largely driven by agricultural and livestock trade.

Among the top U.S. exports to China in 2023 were oilseeds and grains, valued at $18.5 billion, followed by oil and gas at $17.6 billion. Other significant exports included pharmaceuticals and medicines ($11.3 billion), semiconductors and components ($6.8 billion), and aerospace products and parts ($6.8 billion). Navigational and measurement instruments, basic chemicals, and motor vehicles also featured prominently in the export list.

However, there has been a notable decline in some sectors. Exports of oilseeds and grains, including soybeans, corn, and wheat, dropped by $7 billion from the previous year. This decline may continue as trade tensions between the two countries intensify.

The extensive list of products China imports from the U.S. includes:

The ongoing trade dispute and the imposition of tariffs are expected to have significant economic consequences for both the United States and China, potentially affecting jobs, trade volumes, and market dynamics.