China retaliates with 125% tariffs on US goods

Responding to the US, China announced it would increase tariffs from 84% to 125% and stated it would stop there. Beijing says American exports are no longer commercially viable at the current level. US stock index futures fell following China’s announcement.

In the latest escalation of the trade war between the world’s two largest economies, China announced it would raise tariffs on US goods to 125%. However, it added that it would “no longer respond” to further increases by US President Donald Trump.

“Given that US exports to China are no longer commercially viable under the current tariff levels, if the US continues to raise tariffs on China’s exports to the US, China will no longer respond,” the State Council Customs Tariff Commission said in a statement on its website.

The move came hours after Trump announced tariffs he had imposed on China since taking office in January totaled 145%.

The Chinese Ministry of Finance said the increase, from the current additional levels of 84%, would take effect from April 12.

Stocks and the dollar were shaken again as the trade war roils markets.

Since Trump announced a 34% “reciprocal” tariff on China on April 2, the trade war has rapidly escalated, sending shockwaves through global stock markets. The Trump administration has warned numerous countries subject to high tariffs not to retaliate. However, after China retaliated, raising US rates to levels seen as prohibitive for trade, competition between the two has become locked in a tit-for-tat cycle.

Chinese Foreign Ministry Spokesperson Lin Jian previously stated, “We will not allow anyone to deprive the Chinese people of their legitimate right to development. We will not tolerate any attempt to harm China’s sovereignty, security, and development interests.”

Spokesperson Lin said, “The US is trying to put pressure on China by using tariffs. China will never yield to this bullying behavior.” Lin emphasized that China would take resolute and strong countermeasures to protect its rights and interests, stressing, “We will not allow anyone to deprive the Chinese people of their legitimate right to development.” China has been the only country to retaliate against US tariffs.