In a thunderclap escalation of the simmering U.S.-China trade war, Beijing announced Friday it is hiking tariffs on American imports to a punishing 125%—a retaliatory strike against President Donald Trump’s aggressive trade policy, which has now set tariffs on most Chinese goods at a staggering 145%. The announcement signals a deepening divide between the world’s two largest economies, now entangled in a tit-for-tat economic war with no clear exit ramp.
China Draws a Line: No More “Tariff Bullying”
China’s Tariff Commission, part of the State Council, minced no words in a fiery statement issued by the Ministry of Finance, accusing the Trump administration of strong-arm tactics and pledging not to mirror future U.S. increases.
“There is no market acceptance for U.S. goods at the current tariff level. If the U.S. continues its path, China will simply ignore it,” the statement read.
This announcement marks a pivotal moment in a trade battle that kicked off in February, when Trump began layering additional tariffs on Chinese goods. What began as a 10% surcharge has now exploded into a full-scale economic slugfest.
