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illuminem summarises for you the essential news of the day. Read the full piece on CNBC or enjoy below:
🗞️ Driving the news: China has escalated its trade war response, raising tariffs on U.S. goods to 125%, up from 84%, following a sharp increase in U.S. tariffs on Chinese imports to a combined 145%, the Chinese Finance Ministry confirmed Friday
• The move signals Beijing’s intent to strike back decisively as trade tensions with the Trump administration reach their highest point in years
🔭 The context: The tariff hikes are part of a renewed cycle of tit-for-tat measures, reminiscent of the 2018–2019 U.S.-China trade war
• This round includes additional tariffs linked to fentanyl-related imports and other strategic goods
While earlier disputes were occasionally punctuated by negotiations, both sides now show little appetite for talks
• China’s latest statement warns that the U.S. approach risks economic isolation and describes the tariffs as making "no economic sense"
🌍 Why it matters for the planet: This sharp escalation poses serious risks to global supply chains, including clean technology, rare earth elements, and energy storage components—many of which are traded between the two nations
• Prolonged trade disruptions could stall decarbonization efforts by delaying access to key green technologies
• Furthermore, strained bilateral relations reduce opportunities for joint climate action between the two largest carbon emitters
⏭️ What's next: Economists expect both countries to begin assessing economic damage, especially in sectors reliant on cross-border trade
• China’s openness to equal-footing negotiations may leave space for eventual diplomacy, but near-term prospects appear dim
• With Goldman Sachs (See sustainability performance) already cutting China’s 2025 GDP forecast to 4%, concerns over employment and industrial output are growing
• The U.S. may now face pressure from affected industries seeking relief or exemptions
💬 One quote: “There is no winner in a tariff war and going against the world will only isolate itself,” - Chinese President Xi Jinping during a meeting with Spanish Prime Minister Pedro Sánchez
📈 One stat: An estimated 10 to 20 million Chinese workers are employed in sectors tied to U.S.-bound exports, highlighting the stakes of sustained economic confrontation
See here detailed sustainability performance of companies like and Apple, Goldman Sachs, and Tesla Inc.
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