So, it’s 2025, and guess what? The U.S. and China are at it again—yep, another trade war. If you’re thinking, “Didn’t this already happen?” you’re not wrong. But this time, things are heating up even more.
Earlier this year, President Trump (back in office!) decided to slap a tariff on pretty much everything the U.S. buys from China. That’s an extra tax on imports, meaning stuff from China is now more expensive for Americans. His goal? To punish China for what he says are unfair trade practices, like stealing intellectual property and making it hard for U.S. companies to compete.
China didn’t stay quiet. They hit back with their own retaliatory tariffs on American goods—like food, cars, and even coal. It's like a game of ping pong, but with money and politics instead of a ball.
And it’s not just governments feeling the heat. Big companies (like Apple!) are struggling because their supply chains—the steps it takes to make and deliver a product—are all messed up. Some are thinking of moving their factories out of China to avoid the extra costs.
Meanwhile, prices are going up, people are worried about a recession, and both countries are accusing each other of bullying. Fun times, right?
They tried calming things down with a Phase One deal, but clearly, it didn’t last. Whether you're a business owner or just a regular consumer, this stuff affects us all—especially when it comes to the price tags on the things we buy every day.
Vocabulary
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Trade war – A situation where two countries fight economically by placing taxes or limits on each other’s goods.
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Tariff – A government tax on goods brought into the country from abroad.
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Import – A product that is brought into a country from another country.
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Unfair trade practices – Business actions that are dishonest or break international trade rules.
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Intellectual property – Ideas, inventions, or designs that legally belong to someone or a company.
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Retaliatory tariffs – Taxes a country adds in response to tariffs placed on its own exports.
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Supply chain – The full process of producing, shipping, and selling a product.
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Recession – A time when the economy slows down and people buy and sell less.
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Bullying – Using power or threats to control or hurt others unfairly.
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Consumer – A person who buys goods or services for personal use.
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Phase One deal – A partial agreement meant to reduce tension and improve trade relations between countries.
Try this FCE exercise on the trade war for more English practice
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