US-China Trade Tensions Escalate Dramatically with $60 Billion Tariffs and Rare Earths Dispute
Published on 6.7.25
The ongoing trade tensions between the United States and China have reached a boiling point, with both sides engaging in a high-stakes game of tit-for-tat. The latest development is a significant escalation by the US, imposing tariffs on Chinese goods worth $60 billion, targeting key sectors such as technology and aerospace.
This move has been met with a stern response from Beijing, which has vowed to take measures to safeguard its interests. China's slow-walking of export license approvals for rare earths, a critical component in the production of advanced electronics and other high-tech products, is at the heart of the current impasse. US Commerce Secretary accused China of "slow-rolling the deal" and warned of retaliatory actions if the agreement falls apart.
The Geneva tariff row has further complicated matters, with both sides accusing each other of violating the consensus reached in talks between US President Trump and Chinese President Xi Jinping. The situation has also led to increased tensions within the trade relationship between the two countries, which could potentially lead to a broader trade war.