The post How Reciprocal Duties Are Reshaping Global Trade appeared on BitcoinEthereumNews.com.

In early April 2025, the United States dramatically ramped up reciprocal tariffs on Chinese imports—culminating in an across‑the‑board 125 percent duty—while China struck back with matching retaliatory levies on U.S. goods. Simultaneously, the U.S. moved to close the “de minimis” loophole, subjecting low‑value parcels (under $800) from China and Hong Kong to steep duties starting May 2, 2025. These actions are part of Executive Order 14257, declared a national emergency to address persistent trade deficits. While industries scramble to mitigate costs—stockpiling inventory in U.S. warehouses and rerouting supply chains—both sides have signaled a potential de‑escalation. President Trump hinted he may refrain from further hikes amid concerns over consumer spending, and China has indicated it will not raise tariffs beyond 125 percent. This article explores the historical context, policy mechanics, economic and political ramifications, and what lies ahead for global trade. Historical Context: U.S.‑China Tariffs Pre‑2025 The trade war between the world’s two largest economies began under the Trump administration in 2018, when the U.S. invoked Section 301 of the Trade Act of 1974 to impose tariffs on about $360 billion of Chinese goods—initially 10 percent, later rising to 25 percent—citing intellectual property theft and forced technology transfer. China responded in kind, targeting roughly $110 billion of U.S. exports—soybeans, automobiles, and agricultural products—with retaliatory duties as high as 25 percent. Under the Biden administration, negotiations sporadically eased tensions, and limited tariff exclusions were granted for certain goods. However, overall rates remained largely unchanged through 2024, leaving businesses and consumers to absorb higher costs and supply‑chain disruptions. Throughout 2024, discussions centered on targeted relief—such as exemptions for semiconductor equipment—while broader structural issues (e.g., subsidies to state‑owned enterprises) remained unresolved. By year‑end, the U.S. trade deficit with China hit a 15‑year high of $419 billion, renewing pressure for more aggressive measures. These deficits,…

---

Filed under: News - @ April 20, 2025 5:20 pm