China Increases Tariffs on US Goods to 125% Amid Escalating Trade Tensions

China Increases Tariffs on US Goods to 125% Amid Escalating Trade Tensions

China has announced it will raise tariffs on American imports to 125%, up from 84%, in a retaliatory move following U.S. President Donald Trump's decision to hike tariffs on Chinese goods to 145%. This latest development marks a significant escalation in the ongoing trade dispute between the world's two largest economies.

The announcement came just hours after Chinese President Xi Jinping urged the European Union to collaborate with China in opposing what he described as "unilateral bullying" — a reference to the steep tariffs imposed by the U.S. administration. The updated tariffs from China are set to take effect on Saturday.

In a statement, China’s Ministry of Finance indicated that further tariff measures from the U.S. would be disregarded, as the current levels render American goods unviable in the Chinese market. “These successive rounds of excessive tariffs from the United States have turned into a numerical contest with no real economic justification,” a spokesperson said.

Beijing also placed blame on the U.S. for the broader economic instability, stating that the tariffs had caused significant disruption to global markets, trade systems, and the world economy at large. China's Ministry of Commerce added that the U.S. should take full responsibility for the economic turbulence sparked by its policies.

Further inflaming tensions, Trump recently opted to suspend tariffs on other countries for 90 days, excluding China, citing a lack of “respect” from Beijing. Earlier in the week, the U.S. had already implemented a new round of duties, increasing tariffs on Chinese imports to 104%, prompting China’s decision to initially lift its own tariffs from 34% to 84%, before the latest hike to 125%.

During a meeting with Spanish Prime Minister Pedro Sanchez, President Xi reiterated that trade wars have no winners and called for deeper China-EU cooperation to confront the growing trade pressures from Washington. He emphasized the need for both parties to uphold fairness, justice, and their shared international responsibilities.

Despite the rising tensions, President Trump recently praised Xi, calling him a “smart man” who “loves his country” and expressed optimism that a resolution might still be reached. “I think we’ll get a call eventually, and things will fall into place. It’ll be a great outcome for everyone — the U.S., China, and the world,” he told reporters.