Washington, Apr 12 (EFE).- President Donald Trump’s trade war with China is once again roiling global markets, with Beijing retaliating against US tariffs and US Treasury bonds facing fresh volatility amid signs of economic strain.
This despite President Trump signaling a willingness to push the US economy to its limits to reshape global trade. But turbulence in debt markets has already forced a partial rollback of his sweeping tariffs—except those targeting China, where tensions continue to escalate.
On Friday, Beijing announced that it would hike tariffs on all US imports from 84 percent to 125 percent, in retaliation for Washington’s latest measures, which brought the overall US tariff burden on Chinese goods to 145 percent.
China’s State Council Customs Tariff Commission confirmed the hike, accusing the US of “severely violating international trade rules.”
White House spokesperson Karoline Leavitt reiterated Trump’s warning to China against retaliation, while expressing “optimism” that an agreement could still be reached. However, both sides remain locked in a standoff.
One high-profile point of friction is the fate of TikTok.
The Trump istration sees the popular app, owned by Chinese tech firm ByteDance, as a key bargaining chip.
It demands that TikTok operate independently from its parent company and Chinese servers to satisfy US national security concerns.
Despite the trade drama, Wall Street found some relief on Friday after mixed results across Europe and Asia. But the outlook for US treasury bonds remains grim.
Yields on 10-year treasury notes rose by half a percentage point this week, the steepest weekly jump since 2021.
The 30-year bond yield surged to its highest level since 2007, despite Trump’s decision to walk back many of the Apr. 2 tariffs, which he had previously dubbed “Liberation Day.”
The bond market’s unease is especially concerning, given that government bonds are typically safe-haven assets.
Rising yields reflect investor fears of inflation fueled by a prolonged trade war, which would erode the real value of bond payments.
Eyes are now on possible back-channel negotiations between Washington and Beijing.
Also in focus are talks between the Trump istration and other key trade partners, including Japan, South Korea, and the European Union.
EU Trade Commissioner Maros Sefcovic is expected in Washington on Monday for discussions with US officials. EFE
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