Boeing has also encountered delivery blocks to Chinese airlines, which is impacting its status as America's leading exporter.

Federal Reserve Chair Jerome Powell has cautioned that the economic outlook is challenging due to these tariffs, predicting slower growth, increased unemployment, and rising inflation.

Nvidia, a prominent US chipmaker, is projected to face a staggering $5.5 billion loss due to the mandated halt in sales to China by Washington.

The US-China trade relationship is rapidly deteriorating, with projections indicating a potential trade decline of over 80%, signifying a significant 'decoupling' between the two economies.

Amidst this backdrop, there are indications that the Trump administration may not pursue a trade deal with China, but rather focus on strategies aimed at damaging its economy.

Recent reports suggest that the US may exert pressure on other nations to limit trade with China, potentially employing monetary sanctions or tariffs as tools.

The World Trade Organization's director general, Ngozi Okonjo-Iweala, has warned that global trade growth is expected to plummet from 2.7% to -0.2% as a direct consequence of these tariffs.

In the wake of these developments, US stocks have taken a hit, particularly following Nvidia's sales halt to China and the WTO's grim trade forecast.

In response to these tensions, China has implemented export restrictions on seven rare earth minerals, which are vital for various tech products, including iPhones and electric vehicles.

Interestingly, US retail sales saw a rise of 1.4% in March, driven by consumer anticipation of price hikes linked to the impending tariffs.

China is adapting its trade strategies, leveraging its economic power more effectively than before, and has resorted to measures such as halting Boeing deliveries and restricting rare-earth exports.

Despite the escalating tensions, China has expressed a willingness to negotiate, insisting that discussions be grounded in respect and reciprocity.