The United States has announced that China now faces tariffs of up to 245 percent on goods imported into the country, citing Beijing’s retaliatory measures as the cause. The development marks another significant escalation in the ongoing trade war between the world’s two largest economies.

The announcement was made on Tuesday after President Donald Trump authorized a new investigation into the “national security risks posed by the US’ reliance on imported, processed critical minerals and derived products.” These include vital materials such as cobalt, lithium, nickel, and rare-earth elements used in the manufacturing of smartphones, electric vehicle batteries, and military hardware.

Trump flags national security risks

The White House noted that America’s reliance on foreign sources for these minerals exposes it to “serious, sustained, and long-term supply chain shocks,” and this in turn “raises potential risks to national security, technological growth, and economic prosperity.”

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Before this announcement, the ongoing tariff tit-for-tat had already seen the US impose a 145 percent tax on Chinese imports, while China responded with a 125 percent duty on American goods.

Additionally, China has banned the export of certain items, including materials essential to the aerospace and defense industries.

China responds with pressure and optimism

A top Chinese official said Wednesday morning that the United States’ tariffs are putting “pressure” on Beijing. However, the Chinese government simultaneously released optimistic economic data, reporting 5.4 percent growth in the first quarter, with a 6.5 percent rise in industrial output and a 4.6 percent increase in retail sales year-on-year.

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Beijing, though, admitted that the global economic landscape is becoming more “complex and severe,” urging stronger efforts to boost domestic growth and consumption.

Trump says it’s China’s move now

President Trump has insisted that any move toward resolving the trade dispute must come from Beijing. “The ball is in China’s court. China needs to make a deal with us. We don’t have to make a deal with them,” he said, just a day after accusing China of backing out of a major Boeing agreement.

Tariffs as a political and economic strategy

Trump has consistently argued that the US is treated unfairly on trade, accusing countries like China, India, and Brazil of levying higher tariffs on American goods than the US does in return. As part of his re-election platform, he has championed reciprocal tariffs, arguing that they will either force other nations to lower their taxes or rejuvenate the American manufacturing industry, creating local jobs.

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Since January, Trump’s administration has rolled out a wave of new tariffs, beginning with 10 percent in February and March and a steep 34 percent in April. By April 9, cumulative duties exceeded 100 percent, leading to sharp market downturns globally. While Trump has paused several of these orders, the China-specific tariffs remain firmly in place.

China pushes back and seeks allies

China has retaliated with its own set of countermeasures—halting imports of sorghum, poultry, and bonemeal, placing restrictions on 27 American companies, and filing a complaint with the World Trade Organization.

In a strategic diplomatic move, Beijing has also sought to build alliances with India and the European Union.

Just last month, Chinese Foreign Minister Wang Yi urged New Delhi and Beijing to “make the elephant and dragon dance,” calling for joint resistance to “hegemonism and power politics.”