Trump, China, and the tariff war: economic protection or geopolitical struggle?

16 de abril de 2025

Since Donald Trump returned to the White House, his trade policy has become a global lobby. Tariffs of up to 145% and even 245% on Chinese products, threats to European steel, retaliation against Mexico, warnings to Taiwan, and conditions on his closest trading partners.

🔻 But this time, it’s not just about protecting the American economy. 🔻 It’s about showing who’s in charge, who’s giving in, and who’s holding on.

And what’s at stake isn’t just money: it’s power, leadership, alliances, and international online reputation.

The new strategy: tariff pressure

Trump has revived his protectionist strategy with a new tone: more aggressive, more direct, and more symbolic. Tariffs went from 10% to 145%, and now the most likely increase would be 245%.

Timeline of US-China tariff hikes

The trade escalation between the United States and China began after Donald Trump took office, with the imposition of an initial 20% tariff on Chinese products.

Shortly thereafter, on April 2, a new 34% tariff was imposed, followed by an additional 50% increase in direct response to warnings of retaliation from the Chinese government. Thus, US tariffs rapidly escalated to a cumulative total of 104%.

84% tariff increase on US products. In response, Trump again raised the tariffs, raising them from 104% to 125%, arguing that the measure was due to what he called a «lack of respect» on Beijing’s part.

The latest bilateral move occurred last Friday, when China increased its tariffs to 125%, while US tariffs on Chinese products were already at 145%.

However, the situation has taken a new turn, with the White House announcing in a fact sheet that it has significantly increased tariffs on Chinese imports, now reaching 245%.

This new tariff package focuses specifically on critical minerals and their derivatives, considered strategic for national security, infrastructure development, and the promotion of technological innovation in the United States.

China does not give in: prolonged fight between giants

Beijing has responded harshly. Mirror tariffs, antitrust investigations against Google, restrictions on strategic exports, and defiant rhetoric. A spokesperson for China’s Foreign Ministry shared images of Mao Zedong and a clear message via an X post:

“No threat can break China’s resolve.”

Xi Jinping, on his recent tour of Southeast Asia, has reinforced his narrative of resistance in the face of what he considers economic aggression. His message is clear: China will not give in to US blackmail, and prefers to reorganize its trade alliances rather than show any sign of weakness.

China is leveraging its network of alliances ( ASEAN, BRICS, Latin America ) to counter US isolation. It has also leveraged this tension to strengthen agreements with the EU, even negotiating a possible replacement of tariffs with minimum prices in sensitive sectors such as the automotive industry.

TikTok is another front: a digital symbol of Chinese technological hegemony. The tariff conflict is intertwined with the threat to privacy and national security, generating a political war that could lead to its outright ban in the US. The pressure is not only economic, it’s also narrative.

Europe between a rock and a hard place

The European Union, for its part, finds itself in a delicate position. France refuses to respond with widespread tariffs and prefers targeted measures. Germany, under the leadership of Friedrich Merz, advocates resuming a free trade agreement with the United States that eliminates tariffs.

Italy, through its Prime Minister Giorgia Meloni, has opened a direct channel with Trump, seeking to preserve trade cooperation. Spain, with meetings in Washington led by Carlos Cuerpo, is attempting to negotiate protection mechanisms for key sectors such as the automotive and pharmaceutical industries.

This scenario has forced the EU to rethink its global role. Should it adopt a tougher policy or continue to embrace multilateralism? In both cases, its international reputation as a coherent trading bloc is at stake.

Mexico, Canada and the silent threat

Trump has linked his tariffs to issues such as drug trafficking, migration, and security cooperation. Threats to Mexico and Canada are not new, but they are now being formulated with greater force. Trump argues that any deviation from the commitments made in the USMCA could lead to tariff retaliation.

In this context, Mexican authorities have kept a low profile, watching the international scene reorganize. Canada, on the other hand, has requested multilateral negotiations to avoid further friction.

TikTok, semiconductors, and the tech battle

One of the most tense chapters of the conflict is the technological one. The tariff war also targets TikTok, a symbol of Chinese digital supremacy. Although tariffs on tech products were temporarily suspended, Trump’s message has been clear: large platforms must be under US control.

semiconductor industry has become another battleground. Taiwan, the global epicenter of chip manufacturing, has received direct threats if it does not relocate part of its production to the United States.

This control of global hardware and software is part of a broader strategy to control narrative, data flow, and economic power.

Collateral damage: companies, inflation and reputation

Although Trump insists that “ the US is winning ”, on his X account, stating that:

«Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION, and the long time abused USA is bringing in Billions of Dollars a week from the abusing countries on Tariffs that are already in place».

But experts disagree, highlighting the obvious side effects. Inflation resulting from the rise in prices of imported products directly affects consumers. Businesses face uncertainty and higher operating costs.

Many have opted for strategies such as trade triangulation or partial relocation of their operations to circumvent the new taxes. This tariff engineering reduces the effectiveness of the measures and creates distortions in trade flows.

crisis management perspective, these tensions affect not only states, but also major brands that must adapt quickly to a volatile and changing environment. For many, the real risk is the reputational damage they may suffer from political decisions over which they have no direct control.

In this scenario, the online reputation of the actors involved. From political leaders to multinationals, the digital exposure of every statement, decision, or setback can amplify or erode their international legitimacy.

And what about Trump’s global reputation?

For Trump, this tariff war isn’t just an economic policy: it’s a power narrative. His measures position him as a firm, relentless leader, a defender of » America First.» But that image also generates criticism, fears, and warnings globally.

From the perspective of online reputation management, his figure is projected as that of an aggressive negotiator, but also as someone unpredictable, which undermines international trust in the long term.

reputational capital could be eroded globally.

Where are we going?

The tariff war has ceased to be a trade conflict and has become a symbolic confrontation. The power play between China and the United States, with Europe and Latin America as bystanders and supporting actors, is redefining the terms of global trade and strategic alliances.

While the fundamental structures of the system have not yet been broken, the foundations are creaking. The tariff war is no longer just a negotiating tool: it is a measure of strength, influence, and legitimacy.

🗣️ What do you think?

🔹 Is the United States strengthening its power or isolating itself?

🔹 How is this trade war affecting the global reputation of leaders?

🔹 To what extent should companies adapt to geopolitical pressure?