US and China Escalate Trade and Political Disputes Amid New Tariffs and Export Controls

Tensions between the United States and China continue to intensify with both nations citing sovereignty concerns. The U.S. is finalizing a multinational agreement on trade and critical minerals to reduce reliance on China, while also imposing new Section 301 tariffs on various imports. In response, China has announced 'countermeasures' against four U.S. entities and tightened export controls on drone-related dual-use items. This escalation contributes to a record surge in global trade policy intervention observed in early 2026.