$17.2B Market Meltdown: China Turns the Tables on the U.S. Dollar Amid Trade War Shockwaves
China has completely shifted the dynamics of a trade war once dominated by the U.S. Despite Washington’s aggressive tariff campaign — pushed by figures like Scott Bessant and former President Trump urging the U.K. to distance itself from Beijing — the dollar has stumbled, losing nearly 10% of its value in 2025.
Soaring tariffs reaching 145%, supply chain fractures, and escalating import costs have triggered inflationary pressure, production slowdowns, and product shortages across the U.S. economy. Meanwhile, China’s strategic yuan management and extensive stimulus initiatives are helping it maintain stability and leverage global trade momentum.
As the world’s two largest economies clash, America now faces stagflation risks, declining factory activity, and friction with its closest allies. The balance of power in global economics is shifting — fast.
What’s your outlook on the future of U.S.–China economic ties?
