Highlights of the Week: Trade War and Automotive Innovations

Here’s this week’s wrap-up with all the biggest news you need to know.

Escalation of the US-China Trade War

The United States and China have announced a new escalation in their trade war. President Donald Trump increased tariffs on Chinese goods to 145%, while Beijing retaliated by raising tariffs on US imports to 125%, according to official data.

Trump's decision followed accusations that China was not respecting "global rules," adding a new 125% tariff on top of a previous 20% related to the fentanyl crisis. China described these actions as a "numbers game" and "bullying," stating that Washington bears full responsibility for the "severe disruptions" in the global economy.

The latest escalation sees cumulative US tariffs rising to 145%, which includes the new 125% tariff and a previous 20%.

Strong Chinese Response

China's response involved increasing tariffs from 84% to 125% on American goods, effective immediately from April 12, 2025.

This exchange follows Trump's suspension of tariffs on other countries for 90 days, maintaining a tough stance towards China.

China confirmed filing a formal complaint with the World Trade Organization, while Trump deemed the move necessary to pressure Beijing into reaching a "fair trade deal." These measures are expected to exacerbate effects on global supply chains and financial markets amid fears of a full-scale economic confrontation.

World's Most Powerful V12 Engine

Meanwhile, in Denmark, Zenvo has announced its new engine, "Mjølner," for its supercar Aurora, making it the most powerful road-legal V12 production engine in history. The engine features a 6.6-liter capacity with four turbochargers, independently generating up to 1,250 horsepower, increasing to 1,850 horsepower when combined with an advanced hybrid system. It delivers total torque of 1,700 Nm and can rev up to 9,800 rpm.

The engine employs "Hot Vee" technology, placing turbochargers between cylinder banks to reduce size and enhance performance. It's equipped with Mahle Jet Ignition technology to reduce emissions, blending immense power with environmental efficiency.

Zenvo aims to produce only 100 units of the Aurora car, split equally between road and track versions, starting at $2.8 million. The car is one of the lightest in Zenvo's history, focusing on an exhilarating driving experience that combines performance with roaring sound.

According to analysts, this engine represents a revolutionary step in the supercar world, positioning Zenvo in direct competition with industry giants like Bugatti and Koenigsegg.

Kia Unveils Strongest Four-Cylinder Engine

Kia has announced the development of an entirely new engine to support internal combustion and hybrid vehicles while enhancing electric models' performance. The new 2.5-liter turbo engine boasts a thermal efficiency increase of 5% and delivers 12% more power compared to current engines, surpassing 300 horsepower and delivering torque of 421 Nm—making it the strongest in Kia's history.

This engine will improve hybrid car acceleration and fuel efficiency while being used in electric models for battery charging without mechanical connection to wheels. This development marks a pivotal step toward Kia's future goals, including selling 4.19 million cars annually by 2030 with plans to launch ten hybrid models and fifteen new electric models this decade.