When The Chips Are Down, Can China And The US Really Afford A Tech War?

The U.S.-China trade tensions are up a notch with President Donald Trump seemingly playing mind games with Beijing. A day after the U.S. exempted tariffs on high-tech products, U.S. Commerce Secretary Howard Lutnick, in a dramatic move revealed that current tariff exemptions on electronics like smartphones and laptops are only temporary — and the next target is semiconductors. In a candid disclosure, Lutnick admitted that Washington has already made "soft entrees" to Beijing using intermediaries. But Trump isn’t waiting. A steep 145% tariff is now imposed on Chinese goods, while a 90-day pause has been granted to other trading partners—China excluded. China isn't sitting quietly. It's firing back with 125% tariffs on U.S. products, urging Washington to roll back what it calls an unfair economic attack. All of this while Trump publicly calls President Xi Jinping “a friend” and says he hopes for a deal. The irony couldn't be sharper. With a 10% universal tariff still affecting countries like India, and escalating tit-for-tat moves, the big question is: Will diplomacy prevail or are we heading toward a global trade Armageddon?