Trade war: China hits back, raises tariffs on U.S. to 125%

A fresh round of trade war has erupted between China and the United States over tariff increases.
China, on Friday April 11, 2025 announced new countermeasures in response to rising U.S. import taxes on Chinese products.
The Chinese government raised tariffs on American goods from 84 percent to 125 percent, effective from Saturday April 12.

This follows a week of economic tension between both countries, marked by mutual accusations and retaliatory moves.

U.S. President Donald Trump had earlier paused tariffs on other countries, excluding China from the temporary relief.

China described the U.S. tariff hikes as “economic bullying,” vowing to retaliate firmly and without delay.

In response, Trump doubled down and raised tariffs on Chinese goods throughout the week.

With the latest hike, total tariffs placed on Chinese goods by the U.S. now amount to 145 percent.

The 125 percent tariff, announced Wednesday, excludes a 20 percent levy related to China’s alleged role in fentanyl production.

Economic analysts warn the back-and-forth actions could deepen global instability and push the U.S. toward a fresh recession.

Business leaders in America have voiced concerns, urging the government to de-escalate before more damage is done.

Top U.S. trading partners have also threatened to impose new import taxes in retaliation.

Despite this, both the U.S. and China have refused to step down, insisting on tit-for-tat measures.

China’s Ministry of Finance, in a statement, condemned Washington’s “abnormally high tariffs” as reckless and provocative.

“The U.S. is playing a dangerous numbers game,” the statement read on Friday evening in Beijing.

“It lacks real economic value and will be a historical joke,” the Finance Ministry added.

However, the ministry also issued a stern warning to Washington over continued pressure.

“If the U.S. insists on harming Chinese interests, we will fight to the very end,” it declared.

As of Saturday, businesses and consumers on both sides braced for higher costs and trade disruptions.

Economists say the dispute could impact supply chains, stock markets, and global trade volumes in the coming weeks.

The global market is watching closely to see if either side will offer a compromise to halt the economic standoff.

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