The trade war between the US and China has entered dangerous new territory. At the stroke of midnight, the US will impose staggering 104% tariffs on Chinese imports—a dramatic escalation in response to Beijing’s countermeasures. China, refusing to back down, has denounced the move as "blackmail" and vowed to fight back fiercely. But this isn’t just a bilateral showdown—it’s a seismic shift in global trade, one that could upend decades of economic order and push the world closer to a recession.The ripple effects are already being felt. Citi has slashed China’s 2025 GDP forecast to 4.2%, warning that high tariffs could shave off 1.5 percentage points annually, with an additional 0.6-point drag next year. As tensions mount and negotiations with other trade partners accelerate, one thing is clear: the global economy is on shaky ground.
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