China Hikes Tariffs on U.S. Goods as Global Growth Slows

China has hit back against U.S. tariffs, hiking duties on American imports. Meanwhile, the European Central Bank has cut interest rates, and global economic institutions warn of slowing growth and rising inflation due to trade tensions.

China's retaliation sees tariffs on U.S. goods surge to between 84% and 125%. This move comes in response to U.S. tariffs imposed under the Trump administration, which have pushed the U.S. effective tariff rate to levels not seen in decades.

The IMF, Federal Reserve, and World Bank have all expressed concerns about current trade policies. They cite stalled investment and trade disruptions as key factors in the global economic downturn. IMF Managing Director Kristalina Georgieva has warned about the growing toll of economic uncertainty.

European leaders have been critical of Trump-era tariffs, describing them as harmful to global commerce. Despite this, former U.S. President Trump reaffirmed his support for tariffs during a meeting with Italian Prime Minister Giorgia Meloni.

In response to the deteriorating global economic outlook, the European Central Bank announced a rate cut in April 2025. The IMF has also issued a stark warning, forecasting slower growth and heightened inflation.

China's tariff hike on U.S. goods escalates the trade dispute. Global economic institutions warn of slowing growth and rising inflation due to trade tensions. The European Central Bank has acted to support the European economy, but the global outlook remains uncertain.