US-China Trade War Escalates: Washington Imposes 25% Tariffs on Chinese Chips, EVs and Solar Panels
The White House announced sweeping new trade restrictions targeting Chinese semiconductors, electric vehicles and solar panels, sending global markets into a tailspin and triggering immediate retaliatory threats from Beijing.
Representative image. Photo: Nationalism News
The United States on Monday imposed sweeping 25% tariffs on a broad range of Chinese exports including semiconductors, electric vehicles and solar panels, marking a significant escalation in the ongoing trade war between the world's two largest economies. The tariffs, announced by President after a 90-day review by the Office of the United States Trade Representative, take effect from April 15.
The White House said the new duties are in response to what it called China's 'persistent unfair trade practices, state subsidies and intellectual property theft' that have cost American manufacturers an estimated $500 billion over the past decade. The tariffs are in addition to existing duties that range from 7.5% to 25% on over $350 billion worth of Chinese goods.
China's Ministry of Commerce responded within hours, calling the move 'a serious violation of WTO rules' and threatening retaliatory tariffs on American agricultural products, Boeing aircraft and semiconductor-manufacturing equipment. Chinese state media said Beijing would 'not sit idly by' and announced a review of its own trade measures.
Indian markets reacted sharply, with the Sensex falling 320 points in early trade before recovering. Analysts said India could benefit in the medium term as global supply chains reconfigure away from China, with sectors like electronics manufacturing, chemicals and textiles expected to attract redirected investment.
The tariffs are expected to raise the price of Chinese-made EVs in the United States by $8,000-12,000 per vehicle. Tesla, which imports some parts from China, said it was 'assessing the impact.' General Motors and Ford, which have significant Chinese manufacturing operations, saw their shares fall 3-4% on Wall Street.