China Raises Tariffs to 125% in Retaliation Against U.S., Escalating Trade War
China on Friday escalated its trade dispute with the United States by raising tariffs on American goods from 84% to 125%, according to a statement from the Chinese finance ministry.
“Even if the U.S. continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of the world economy,” the ministry stated.
The announcement also emphasized that “with tariff rates at the current level, there is no longer a market for U.S. goods imported into China,” adding that Beijing would “ignore” any further tariff hikes from Washington.
The U.S. administration confirmed on Thursday that the total effective tariff rate on Chinese imports has reached 145%. This includes President Donald Trump’s latest executive order raising tariffs to 125%, alongside an earlier 20% levy related to fentanyl announced earlier this year.
Despite the rising tensions, a spokesperson from China’s commerce ministry said Friday that Beijing remains willing to negotiate with the U.S. — but only on an equal footing.
Hopes for a resolution have dimmed in recent days, with China responding to U.S. measures through tit-for-tat tariffs and new restrictions on American companies operating in China.
“It’s unfortunate that the Chinese actually don’t want to come and negotiate, because they are the worst offenders in the international trading system,” U.S. Treasury Secretary Scott Bessent said in an interview earlier this week, criticizing Beijing’s approach. “They have the most imbalanced economy in the history of the modern world, and I can tell you that this escalation is a loser for them.”
Meanwhile, Goldman Sachs has revised its forecast for China’s GDP growth down to 4%, citing pressure from trade tensions and slowing global demand.
Though exports to the U.S. make up only around 3 percentage points of China’s total GDP, the impact on employment is significant. Analysts estimate that 10 to 20 million Chinese workers are engaged in export-related industries serving the U.S. market.
China reaffirmed its stance Friday, vowing to “resolutely counter-attack and fight to the end” if the U.S. continues what it views as violations of its economic interests.
The White House has yet to issue a response.
