TRADE WAR UPDATES: China retaliates on tariffs, posts mocking images of Trump, Vance and Musk; Tesla makes bold move

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Instead of trying to make a deal with the Trump administration to help promote fair trade as many other countries have done, China is defiantly hitting back at the United States, and now Elon Musk’s Tesla has jumped into the fray as well.

Below are the latest updates as of noon Friday:

1 – China Raises Tariffs on U.S. to 125% as Tit-For-Tat Trade War Escalates
From the New York Times: China responded to President Trump’s tariffs on Friday, raising its own tariffs on American goods to 125 percent, as the world’s two biggest economies extended a fast-moving tit-for-tat that has seen the cost of trade soar and fueled concerns over a global recession.

The announcement came after Trump administration officials clarified that China was now facing a minimum tariff rate of 145 percent on all exports to the United States. China mocked Mr. Trump’s tariff policies as “a joke” in an official statement and said its new tariffs, which raise the tax on American imports from 84 percent, would take effect on Saturday.

Stock markets shuddered in response to the latest salvo in the trade war. The S&P 500 moved between gains and losses in early trading while the Stoxx Europe 600 index closed lower. China’s latest response came after markets in Asia had already closed.

2 – Tesla stops taking new orders in China for two imported, US-made models
From Reuters: Tesla has suspended taking new orders for Model S and Model X vehicles on its Chinese website, Reuters checks showed on Friday, as the world’s two largest economies exchange blows in a trade war.

Both models are made in the U.S. and imported to China. New orders for the two models were also no longer available on the automaker’s WeChat mini programme account in China.

3 – China fuels trade war with AI-generated posts of Trump, Musk lacing up Nikes in a factory
From the New York Post: Chinese social media accounts are leaning into Beijing’s trade war with the US by putting out AI-generated posts of Americans clocking in for factory jobs — including one showing President Trump and Elon Musk on the production line for fresh pairs of Nike sneakers.

Videos and memes boosted by Chinese media and posted by government officials are mocking Trump’s “Make America Great Again” slogan while displaying the expected higher price of goods either made in US-based facilities or imported there under punishing 125% tariffs.

Trump and Musk are sitting side by side wearing blue jumpsuits and working on the Nike shoes, while Vice President JD Vance pieces together an iPhone, sporting denim and a red hat conspicuously missing its MAGA letters, according to a compilation of the AI videos from a Chinese TV station’s account.

Below is a longer version of the AI-generated Nike factory video:

4 – Chinese foreign ministry spokeswoman Mao Ning posts defiant messages on social media

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