China-US Trade War Escalates

China and the United States are engaged in an escalating trade war, with both nations imposing significant tariffs and trade restrictions on each other. China announced it would raise tariffs on American goods to 84% and added 11 American companies, including American Photonics and Synexxus, to an 'unreliable entities' list, barring Chinese companies from selling them dual-use goods. These actions are in response to the United States, under President Donald Trump, raising total tariffs on imports from China to 104% and terminating trade negotiations. China has also launched a suit against the United States at the World Trade Organization and imposed export controls on rare earth minerals. A key point of contention is a U.S. law that would ban ByteDance — TikTok Shop unless sold by its Chinese parent company, ByteDance, which China views as a violation of a phase 1 trade deal. ByteDance has indicated that China will not approve a deal for ByteDance — TikTok Shop without broader trade and tariff negotiations. China's Ministry of Commerce and Ministry of Foreign Affairs have stated their firm will to 'fight to the end' if the United States continues to escalate economic restrictions, warning of negative impacts on financial markets, U.S. inflation, industrial base, and the risk of a U.S. economic recession.