U.S. President Donald Trump reignited fears of a full-blown trade war by threatening to impose 100% tariffs on Chinese imports. The threat followed China’s imposition of tighter export controls on rare earth elements, which are critical components for advanced manufacturing and tech sectors.
These renewed tensions overshadowed the 2025 IMF and World Bank meetings in Washington. The optimism of a prior thaw between the two nations now appears tenuous, as markets reacted with volatility. Treasury Secretary Scott Bessent attempted to calm investors by stressing continued dialogue and the possibility of a Trump–Xi meeting to deescalate tensions.
Despite this, the IMF projected 2025 global growth at 3.0%, citing resilience across many economies. However, analysts warn that severe tariffs could derail trade, investment flows, and supply chains, especially in tech, energy, and commodity markets.
For Indian, Nepalese, Bangladeshi, and Bhutanese audiences, the story is especially relevant—these countries are deeply integrated into global supply chains and could see ripple effects in their export markets, input costs, and foreign investment flows.
