Weaponizing Tariffs: The US-China Trade Clash and Global Fallout

This article makes the case that tariffs, which were once thought of as economic tools, are now being used more and more as strategic tool by superpowers, especially China and the United States (US), to achieve geopolitical objectives, demonstrate their influence globally, and alter the international order. The recent changes to the global trade system have become even more apparent, particularly in light of the economic disputes between the United States and China. In addition to their bilateral ties, the two nations’ tariff-based retaliatory policies also highlight their effects on the world economy. In this regard, the high customs taxes imposed by China on the US demonstrate the severity of trade wars as well as the political and economic power of tariffs. We are now in a time when trade policies are strategic actions that support both the global power struggle and the defense of the economic interests (Eder, 2025). One notable example of a robust response to the tariffs imposed by the Trump administration is China’s decision to levy an additional 34 percent customs duty on imports of US origin. The decision was not just about tax retaliation; it also included a more comprehensive economic countermove by adding 16 US-based organizations to the sanctions list and restricting the export of rare earth elements, which are essential to the high-tech production. These events, which have resulted in steep drops in oil prices, a decline in global stock markets, and heightened fears of a recession, emphasize the extensive global impacts of tariffs. China claims that these policies violate international trade regulations, but the US is making it clear that it will not back down. Therefore, the recent developments have demonstrated that the tariffs have become a tool of geopolitical and economic power, and that the global order is shifting towards a new balance of power (Hawkins,2025).

What has Donald Trump threatened China with?

With both sides threatening to implement significant trade barriers in the future, the ongoing tariff tensions between the US and China have intensified. Trump has threatened to impose a 50 percent increase on the current 54 percent tariff on imports from China. The US president threatened to impose the measures if Beijing did not lift the 34 percent tariffs it imposed on US goods last week. As a result, the total amount of new taxes that the US may impose this year on Chinese imports could total 104 percent. According to the US president, China would have to concede if it did not want the measures to be put into effect. If China does not withdraw its 34 percent increase over what Trump perceives as existing long-standing trading abuses by April 8th, 2025, the United States will impose an additional 5 percent tariff on China beginning on April 9th (Matchett, Sarkar, & Cobham, 2025).

Are retaliatory actions the result of pragmatic desires?

Tariffs have become strategic tools supporting both domestic political agendas and geopolitical goals in the changing terrain of global power politics. These changes show that the tariffs are increasingly being used as geopolitical levers in addition to being utilized as economic tools. In particular, China’s export restrictions on rare earth elements have served as a strategic pressure mechanism on economies that rely on these resources for the production of high-tech goods. Such actions should be seen as a component of a larger plan to strengthen China’s growing economic might and political clout globally, rather than as merely retaliatory actions against the US. In this situation, trade policies are becoming essential elements of great power competition rather than being restricted to the normative frameworks of the international system. When viewed through the prism of Kennedy’s idea of “illiberal hegemony,” these dynamics highlight China’s ambitions to become the new alternative for center of global power and cast doubt on the United States’ capacity to uphold the rules-based international order (Kennedy, 2025).

In addition to pursuing economic independence, the US’s high tariff-based foreign trade policy under the Trump administration was a calculated move to exert pressure on the negotiation process. Global supply chains have been shook, and businesses have found it challenging to make investment decisions as a result of the import duties that President Trump imposed using his unilateral presidential authority. The rhetoric of the “New Golden Age of Global Trade” has legitimized tariff increases, but the American economy lacks the infrastructure and labor force to quickly increase its production capacity, casting doubt on the viability of this objective. The promise of re-industrialization made to voters in domestic politics should be interpreted as an extension of Trump’s tariffs, in addition to being a means of external economic warfare. Trade policy has thus evolved into a multifaceted strategic tool that supports both domestic political legitimacy building and global competition (Lynch,2025). In this regard, President Trump justified these import taxes as measures to protect the American workforce and ensure the expansion of the US economy, recognizing they would cause economic shocks globally. However, ongoing debates center on how these policies will impact global trade balances and how much of the long-term objective of boosting US production capacity can be accomplished (Epstein,2025).

The recent rise in trade tensions between the US and China is indicative of a change from purely economic disagreements to more extensive strategic conflict. With the US threatening to raise tariffs on Chinese goods, trade tensions between the US and China have risen once more. Instead of being based on economic principles, President Donald Trump’s proposal to impose an additional 50% tariff on China has turned into a conflict between the two nations. Both the government and the private sector have implemented domestic support mechanisms to counteract the contraction in the US market, despite China’s declaration that it will “fight to the end” against these threats. The public is responding to Trump’s economic development policies, even as China’s export-based economic recovery is in jeopardy. However, China’s emphasis on alternative markets, such as in Southeast Asia and Europe, suggests that trade strategies will take a different turn (Cash & Chan, 2025).

Do Tariff Wars Between Superpowers Threaten International Stability?

Global geopolitical competition now revolves around the US-China trade tensions, which are no longer merely separate economic issues. The likelihood of the US-China trade tensions getting worse in the future is very high. Tariffs may be employed in geopolitical competition in addition to its economic instrumentalisation. Additional disruptions to international trade, supply chain disruptions, higher production costs, and general price fluctuations could result from this global change. Specifically, both nations may step up their efforts to gain dominance in key areas, particularly in advanced technology, AI, and 5G, which could worsen economic instability worldwide. China’s restrictions on exporting strategic resources, such as rare earth minerals, and its counter-tariffs on US-origin goods demonstrate that trade has evolved into both an economic and a strategic arena. This dynamic has been made more complex by Trump’s aggressive trade policies, which have made tariffs a tool of geopolitical competition. Other nations may create plans to counter US tariffs as a result of these developments, particularly as they jeopardize the equilibrium of international relations. Trade wars have evolved into a tool for both political and economic power struggles as risks like the volatility of the oil prices, stock market swings, and the potential for a worldwide recession grow in global markets. As a result, we are about to enter a time when trade policies will play a significant role in reshaping global affairs and diplomacy, meanwhile international economic strategies will become more intertwined. Lastly, the way that the US and China have changed their tariff policies supports the claim that the trade policy has become a pivotal area in the geopolitical struggle between superpowers, where economic instruments are used to achieve strategic goals that go beyond market forces.

References

Cash, J., & Chan, N. (2025, April 8). China sticks to its guns as fresh US tariff threat pushes tensions to the brink. Reuters. Available at: https://www.reuters.com/world/china-says-it-will-never-accept-us-blackmail-escalated-tariff-threats-2025-04-08/

Eder, T. (2025). ‘CHINESE FOREIGN POLICY IN 2025: ABSORBING BLOWS & PROFITING FROM OTHERS’ MISTAKES,’ OIIP – Austrian Institute for International Affairs. http://www.jstor.org/stable/resrep66828

Epstein, K. (2025). Trump’s tariffs on China, EU, and more, at a glance. BBC News. Available at: https://www.bbc.co.uk/news/articles/c1jxrnl9xe2o

Hawkins, A. (2025). China retaliates against Trump in trade war with 34% tariffs on US imports. The Guardian. Available at: https://www.theguardian.com/business/2025/apr/04/china-announce-levy-on-us-imports-in-retaliation-to-donald-trump-trade-war-tariffs

Kennedy, S. (2025). ‘The United States’ Illiberal Turn Recasts a Potential Deal with China,’ Center for Strategic and International Studies (CSIS). http://www.jstor.org/stable/resrep68483

Lynch, D. J. (2025). Trump wants to build a new economy with tariffs but faces a big obstacle: Himself. The Washington Post. Available at: https://www.washingtonpost.com/business/2025/04/08/trump-tariffs-manufacturing-economy/

Matchett, K., Sarkar, A. R., & Cobham, T. (2025, April 8). Trump insists China wants trade deal ‘badly’ as Beijing plans US imports block. The Independent. Available at: https://www.independent.co.uk/news/business/ftse-stock-markets-trump-tariffs-china-uk-eu-latest-news-b2729406.html