China just fired its heaviest shot yet in the trade war: a blanket tariff hike to 125% on all U.S. imports. The move came after Trump jacked up duties on Chinese goods to 145%a level so high it essentially makes trade between the two economic superpowers nonviable. Tesla, Apple, and other multinationals with deep China exposure are suddenly looking at a world where their supply chains and end markets may be toast.

But here's the twist: Beijing says this is it. No more tit-for-tat. No more playing Trump's tariff numbers game. China's calling the strategy a joke, refusing to retaliate further, and instead pivoting to diplomacy. Xi Jinping is already rallying global alliesEurope, ASEAN, the Gulf nationsand restarting talks with Brussels over long-frozen trade spats. Meanwhile, Hollywood films, U.S. travel, and even study abroad in Ohio are getting caught in the crossfire. This isn't just a trade dispute anymore. It's a full-spectrum economic standoffgoods, services, people, culture.