Based on current signals tracked by final.red's prediction engine, evidence suggests the US-China trade war involving the reported 145% tariff levels is likely to continue escalating through 2025. The administration's demonstrated pattern of implementing progressive tariff increases, combined with rhetoric indicating a hardline negotiating posture, indicates that further escalation remains probable rather than a de-escalation scenario.
The prediction engine has identified three key signals indicating escalatory trends. Most notably, Trump has announced 25% tariffs on European Union cars and trucks while simultaneously tearing up portions of existing EU tariff deals to raise import duties further. This action demonstrates a willingness to dismantle previous trade agreements and implement substantial tariff increases across multiple trading partners simultaneously. The parallel actions against both China and the EU suggest a broader strategic approach rather than isolated incidents.
The administration has explicitly threatened continued tariff increases against China while maintaining what Reuters reports as a "hardline negotiating posture" entering 2025. This rhetoric signals that current tariff levels are viewed as negotiating tools rather than final positions. When tariffs are framed as pressure mechanisms rather than sustainable trade policy, historical patterns suggest they typically increase until desired concessions are obtained.