In a sharp escalation of the ongoing trade war, China announced Friday that it would raise tariffs on U.S. goods to a staggering 125%, with the new levies set to take effect on Saturday.
The move comes as Beijing dismisses President Donald Trump’s tariff measures as a “joke” and “numbers game,” signaling a further deterioration of relations between the world’s two largest economies.
The decision follows a week of market turbulence, as both China and the United States introduced retaliatory tariffs, exacerbating global economic uncertainty.
Despite Trump’s aggressive stance, which includes higher tariffs targeting various major economies, China has made it clear that it will no longer tolerate further U.S. tariff increases.
According to Beijing’s Ministry of Commerce, the current tariff levels have already rendered U.S. goods uncompetitive in China’s market, and any future increases will be ignored.
“The United States’ imposition of exorbitantly high tariffs has no practical economic significance,” said a spokesperson from China’s Commerce Ministry. “If the U.S. continues this tariff escalation, China will simply disregard it.”
This latest round of tariff hikes by China comes after President Trump paused his planned increases for 90 days, with the exception of those targeting China.
The U.S. has raised tariffs on Chinese goods by up to 145%, a move that has been met with swift retaliation from Beijing.
Despite this, Trump has downplayed the economic disruptions, insisting that the long-term outcome will benefit the U.S. economy.
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In response to the market chaos, Trump has previously stated that the trade war would ultimately be “a beautiful thing,” while European Union officials, wary of further U.S. trade measures, have vowed to consider their own countermeasures.
Ursula von der Leyen, President of the European Commission, has warned that the EU stands ready to introduce retaliatory tariffs, including a potential levy on digital services advertising revenues.
As the trade conflict rages on, President Xi Jinping of China emphasized the importance of international cooperation, particularly with the EU, to resist what he described as unilateral “bullying practices” by the U.S. Xi’s comments came ahead of his upcoming visit to Vietnam, Malaysia, and Cambodia, where he is expected to discuss the escalating tariff dispute.
The economic fallout from the trade war is being felt globally, with stock markets in Asia and Europe dipping in response to the uncertainty.
Oil prices and the value of the dollar have also seen declines, while gold prices surged to record highs as investors sought safe havens.
Critics of Trump’s tariff policies argue that they are destabilizing global markets, hurting American consumers with higher prices, and straining relationships with key international allies.
As the situation continues to evolve, many are left questioning whether any side will emerge victorious from the growing trade conflict.
With the possibility of further escalations on the horizon, the international community watches closely as both countries prepare for what could be a prolonged and increasingly complex economic battle.