China escalates trade war, increases tariffs to 125%

The ongoing US-China trade war has escalated into a geopolitical confrontation between President Trump and Chinese President Xi Jinping, with both sides increasing tariffs significantly—US tariffs on Chinese goods now at 145% and China's retaliatory tariffs at 125%. As a result, Tesla has suspended new orders for two models in China, signaling the impact of these tariffs on its business. Analysts suggest that this situation places Musk, a Trump ally, in a difficult position as the trade war adversely affects Tesla's international sales. Meanwhile, Chinese state media is leveraging AI-generated content to ridicule US trade policies, with memes and videos mocking Trump and Musk. The rising tensions have led to a surge in satirical content online, reflecting the defiance of Chinese exporters and state officials. Despite the economic strain, China has vowed to maintain its stance against what it calls US bullying, focusing on internal reforms and global partnerships instead of backtracking on tariffs.