China escalates trade war, raising tariffs on U.S. goods to 125%

Sequential escalation narrative: leads with China's action as 'latest salvo' while contextualizing Trump's higher tariffs (145% vs 125%), creating appearance of tit-for-tat while Trump initiated. Uses economic consequence framing (recession fears, market rattling) to emphasize stakes.

Bilateral U.S.-China competition intensifying with tit-for-tat escalation. China positioning itself as victim of 'economic bullying' to gain international sympathy. WTO authority undermined as major powers bypass multilateral mechanisms. Potential realignment as third countries seek alternative trade partnerships to avoid tariff crossfire.

Resembles 1930s Smoot-Hawley tariff spiral that deepened Great Depression, though modern interconnected supply chains amplify systemic risk. Also echoes 2018-2019 Trump-era trade war but with higher tariff rates and greater economic integration at stake.

Higher prices for imported goods, increased costs for consumer electronics and pharmaceuticals, potential job losses in export-dependent industries, reduced purchasing power as inflation pressures mount from tariff pass-through.

WTO litigation likely to intensify; potential coordinated international response to contain trade war; domestic policy pressure for stimulus measures if recession materializes; possible negotiations to de-escalate tariffs; regulatory review of supply chain vulnerabilities.