Business News
2 min read | Updated on April 11, 2025, 14:16 IST
SUMMARY
China has raised tariffs on US goods to 125% in response to President Donald Trump’s decision to hike duties on Chinese imports, intensifying the ongoing trade war between the two global economic powers.
The tit-for-tat actions mark a new peak in the trade war that threatens to disrupt supply chains.
China raised tariffs on US goods to 125% on Thursday, up from the previous 84%, intensifying a growing trade conflict between the world’s two largest economies after President Donald Trump announced sharply higher duties on Chinese imports.
The move was announced by China’s Ministry of Commerce, which said it was taking “resolute countermeasures” to protect the country’s rights and interests.
A ministry spokesperson said China “firmly opposes and condemns” what it described as the United States' “wanton unilateral tariff measures.”
If the US continues to impose additional tariffs on Chinese goods exported to the US, Beijing will ignore it, the Chinese finance ministry said.
"The U.S.' repeated imposition of abnormally high tariffs on China has become a numbers game and has no practical economic significance," the statement read, adding that China urges the U.S. to "take a big step forward in eliminating the so-called 'reciprocal tariffs' and completely correct its wrongful practices."
The tariff increase follows Trump’s surprise decision on Wednesday to pause tariffs on most nations for 90 days while simultaneously raising the rate on Chinese goods to 125%.
The US president claimed on Truth Social that more than 75 countries had approached his administration for trade talks and had not responded with “meaningful” retaliation, prompting him to issue a “90 day PAUSE” for them and implement a reduced reciprocal tariff of 10%.
The tit-for-tat actions mark a new peak in the trade war that threatens to disrupt supply chains and raise costs for American consumers and businesses already grappling with inflationary pressures.
Meanwhile, China's mission to the World Trade Organization filed an additional complaint to the trade body over US tariffs.
"On 10 April, the United States issued the Executive Order, announcing a further increase of the so-called 'reciprocal tariff' on Chinese products. China filed a WTO complaint against United States’ latest tariff measures," the statement from China's mission said, citing a ministry of commerce spokesperson.
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