I woke up one morning to find a TikTok clip of Mao Zedong in my feed.
The Great Helmsman thundered “we will never yield” as text about tariffs flashed on the screen, a current rallying cry rather than a retro history post.
The US-China trade war—once a battle of spreadsheets—has escalated into a global brawl spanning tariffs, rare earths, and viral videos.
Here’s what’s happening in real time.
Washington Calls It “Liberation Day”
The flashpoint came on April 2, when President Trump proclaimed “Liberation Day” and imposed a 10% baseline tariff on imports, effective April 5, with even steeper country-specific hikes to follow. Allies and CEOs were stunned; by April 9, even countries like Japan were facing a 24% duty.
Due to diplomatic blowback, the administration paused higher tariffs for 90 days for most countries—but one was left out of the reprieve: China.
As of mid-April, U.S. tariffs on Chinese goods have soared to 145%, making them prohibitively expensive. Beijing responded with 125% tariffs on American exports, effectively freezing trade between the world’s two biggest economies.
Trump supporters cheered, seeing it as overdue punishment for China’s trade surplus and what they label unfair practices. U.S. officials claim the move was necessary to force Beijing to address market barriers and intellectual property theft. In their view, “Liberation Day” symbolized breaking free from decades of economic exploitation.
From China’s perspective, it was a direct provocation. Within hours, Beijing launched a countermove that showed just how broad this conflict might become.
Beijing Punches Back Hard
China responded to Trump’s tariff salvo with its own duties and a strategic trump card: rare earth elements. These obscure metals are indispensable to critical technology—fighter jets, electric car batteries, and smartphones—and China supplies about 90% of them globally.
On April 4, Beijing restricted the export of seven categories of rare earth materials used in defense, energy, and automotive industries as direct retaliation. Overnight, shipments nearly halted as Chinese exporters awaited new government licenses.
For companies dependent on these metals, the freeze is alarming. If it drags on more than two months, U.S. stockpiles could run dry, and exporters in China might be hesitant to ship to American clients at all. China’s dominance in heavy rare earths is so complete that outside of China (and its close allies like Myanmar and Laos), there’s only one significant heavy rare earth operation worldwide.
Beijing’s message: “You tax our goods? We’ll cut off materials essential to your economy and military.”
This tactic isn’t entirely risk-free for China, because it encourages the U.S. and others to diversify supply or develop rare-earth alternatives. But establishing new mines and supply chains takes years. Right now, Beijing’s leverage is formidable, and the move reminds Washington that purely “winning” a trade war is complicated when critical supply chains have a single point of failure.
Wartime Footing and Propaganda
China’s leadership has reportedly gone on a “wartime footing,” phones on 24/7, preparing for an economic siege. Communist Party messaging frames this conflict as a test of national resilience. The state propaganda machine posts videos of Mao Zedong’s defiant vows—“we will never yield”—and editorials urging people not to panic or hoard goods. The domestic narrative is one of standing firm against foreign bullying, while officials quietly court other nations to oppose the U.S. approach.
@uptoknewsnow We dont care china has been here for 5000 years… #chinaa #us #trade #tarrifs #economics #worldtok #china #victorgao #fyp ♬ original sound – UPTOK 🇳🇴
Meanwhile, the U.S. continues to view China’s huge trade surplus as proof of long-standing unfairness. Both sides are rallying public opinion. On one side, it’s talk of “liberation” from being “ripped off”; on the other, it’s about never bowing to hegemony. Yet the most striking shift has been how the conflict has spilled onto social media platforms—especially TikTok.
TikTok Becomes a Battleground
TikTok has turned into a split-screen view of two parallel realities. Chinese creators flood the platform with content highlighting China’s industrial prowess and accusing the U.S. of hypocrisy. American entrepreneurs post anxious videos about supply chain disruptions and price spikes. It’s trade policy debated via memes, dance challenges, and short video clips.
Pulling Back the Curtain on Global Supply Chains
Some Chinese factory owners and influencers are revealing that certain Western products labeled “Made in the USA” or “Made in Italy” are largely produced in China, with just a final stitch or logo added domestically. They name specific brands, from Michael Kors to Coach to Levi’s, offering a window into how global supply chains really work.
These videos spark pride among some Chinese users—“our products are high-quality, and you Americans just don’t admit it”—and fuel direct-to-consumer marketing pitches: “Skip the tariffs. Buy from us on TikTok or Alibaba.”
Meanwhile, on the U.S. side, small business owners post about how the tariff spike is destroying their profit margins. A Denver-based baker explained that her packaging materials are sourced in Shanghai; with tariffs at 145%, her costs will go through the roof.
A boutique fashion line co-founder described how his Japanese-milled denim now faces a 24% tariff, upending his pricing and production schedule. Their videos are raw expressions of worry and frustration.
TikTok’s Controversial Position
Amid all this, TikTok itself is under scrutiny by U.S. lawmakers who accuse its Chinese parent company, ByteDance, of data harvesting or covert influence. The platform is fighting a possible ban or forced divestiture in the U.S. So it’s ironic that the same platform is now a place where China’s viewpoint can spread globally.
Is it organic public discourse, orchestrated propaganda, or a bit of both?
The lines are blurry.
What’s clear is that 21st-century propaganda isn’t just state-run broadcasts—it’s short-form videos, personal testimonies, and clever memes that shape perceptions around the world.
Chinese state media hasn’t slacked off in its traditional avenues, either. It’s working overtime on Weibo and WeChat to unify domestic sentiment, urging citizens to stay strong in the face of high tariffs. The official line: we’ve endured worse; we’ll endure this.
Both the U.S. and China are playing to emotion and identity. Trump rallies his base with nationalist rhetoric, while Xi’s apparatus preaches stoicism and perseverance.
Ordinary People Feel the Squeeze
Beneath the political grandstanding, families and businesses on both sides are facing real consequences. Trade wars stop being abstract when they threaten your job, your grocery bill, or your business survival.
American Businesses and Consumers
A friend of mine who runs an electronics import business in California has a container stuck at port because paying the new duties would bankrupt him. He’s scrambling to find non-Chinese suppliers in Vietnam or India, but that could take months—time he might not have.
Countless small businesses are in a similar bind, whether they import completed products or just components.
A 145% tariff is not something you absorb without raising prices or shutting down.
Consumers will likely see higher prices on everything from holiday lights to furniture. Economists warn that, if tariffs persist, the cost of many everyday goods will rise. When factories pass along the extra cost, retailers face a choice: either charge consumers more or discontinue products.
Chinese Factories and Shoppers
In China, manufacturers that rely on U.S. orders face slashed demand. One of the big draws for American companies was the low cost and high quality of Chinese production. A 145% tariff effectively locks them out of the U.S. unless they can pivot to other markets.
Some of them may relocate production to Southeast Asia, but not quickly or cheaply.
On the consumer side, people in China are also dealing with higher prices for American imports. One Beijing resident told me she rushed to buy a U.S. skincare product before new stock arrived at double the cost due to tariffs. “It’s like the whole world’s store is closing,” she joked ruefully. Others will do without certain American products entirely.
Farmers, Commodities, and the Ripple Effect
U.S. farmers who export soybeans or meat worry about losing the Chinese market (one of their biggest customers) again. The cycle of regaining market share and then losing it to trade tensions makes it hard to plan crops or long-term investments.
In 2024, the U.S. exported $199 billion in goods to China, including farm products.
Those numbers could collapse if the standoff continues.
On the Chinese side, if U.S. imports become too expensive or blocked, it can create shortages or skyrocketing prices for commodities and high-end products. That can trigger inflation and public discontent. For now, Chinese media urges calm and unity, though the risk is real that prolonged tensions could shake consumer confidence.
No one knows how long this will go on.
The underlying fear shared by many is psychological: how do you plan a future in such volatile conditions?
A farmer deciding what crops to plant, a Chinese factory worker wondering about layoffs, a U.S. entrepreneur or a recent graduate—they all live with whiplash policy changes dictated by global power struggles.
The Bottom Line
This US-China trade war has evolved from a mere exchange of tariffs into a full-scale confrontation—economic, political, and cultural. Washington wields taxes and tech bans, while Beijing holds its monopoly on rare earths and orchestrates mass mobilization of public sentiment.
Both argue they’re defending their people, but workers, consumers, and small business owners bear the brunt.
Neither side seems likely to fold easily. The U.S. underestimates China’s resolve and capacity to retaliate, while China underestimates America’s willingness to “decouple” over security concerns. Although some voices on both sides call for talks, the rhetoric remains confrontational. Tariffs and embargoes might score political points, but they also raise prices, stoke mistrust, and destabilize an already fragile global economy.
Is there an endgame?
If the goal is a new trade deal addressing core issues such as intellectual property theft or market barriers, negotiations would have to resume. If it’s more about scoring domestic political wins or undermining a rival superpower, we could be locked in for the long haul. Many fear that even after a truce, supply chains and international trust might never fully revert to their pre-conflict state.
Mao’s voice echoing “never yield” in that TikTok video captures the mood.
Neither Washington nor Beijing appears ready to compromise significantly. But if both remain entrenched, what happens to everyone else in a globalized economy?
That’s the question as we scroll TikTok or watch the next tariff announcement roll in. The trade war isn’t just in official statements anymore; it’s unfolding on our phone screens and in our daily lives, one video at a time.
