25 April 2025

🔥 Tariff Escalation Timeline

• Feb 1: U.S. imposes a 10% blanket tariff on all Chinese imports.
• Mar 3: Tariffs increase to 20%.
• Apr 2: Tariffs rise to 54%.
• Apr 9: Tariffs escalate to 125%.
• Apr 10: Tariffs peak at 145%.    

In response, China imposes:

• Apr 11: 125% tariffs on U.S. goods.

📊 Trade Impact

• U.S. Imports from China: Projected to shrink by 40%.
• Global Container Shipping: Expected 1% decline due to U.S. trade policies.
• U.S. Trade Deficit with China (Jan–Feb 2025): $52.9 billion. 

💸 Economic Consequences

• Average U.S. Household Cost: Tariffs amount to an average tax increase of $1,243 per household in 2025.
• Corporate Earnings: Major firms like Procter & Gamble and PepsiCo have revised earnings forecasts downward due to tariff impacts.
• Consumer Prices: Prices for goods from retailers like Shein and Temu could rise by up to 125%.  

🛠️ Strategic Responses

            China’s Measures:

• Bolstering unemployment insurance and raising incomes.
• Considering lifting tariffs on select U.S. imports like semiconductors.

            U.S. Considerations:

• Potentially reducing tariffs to 50–65% to ease tensions. 

Source : Various News Sources