China Slaps 125% Tariffs on U.S. Goods as Trump Raises Duties to Record 145%

Andrew Chen
China Crypto

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Escalation of the ongoing U.S.-China trade war, Beijing has raised tariffs on all U.S. imports to 125%, up from 84%, just hours after President Xi Jinping declared that “there are no winners in a tariff war.” The move signals China’s firm stance amid heightened global economic tensions and comes as Xi seeks to rally European and other trading partners against what he calls Washington’s “unilateral bullying.”

During a diplomatic meeting with Spanish Prime Minister Pedro Sánchez, Xi urged the EU to cooperate with China in defending global trade norms and resisting protectionism. “Going against the world will isolate oneself,” Xi warned, in a veiled rebuke of U.S. policy.

The Chinese Ministry of Commerce’s announcement framed the hike as possibly its final retaliatory measure, stating that the new tariff levels render U.S. goods uncompetitive in China. The ministry reiterated China’s readiness to “fight to the end” but hinted at a shift toward other countermeasures should Washington escalate further.

Global markets reacted swiftly. Japan’s Nikkei plummeted nearly 5%, while Hong Kong’s Hang Seng index teetered toward its steepest weekly loss since 2008. Oil prices also slipped, reflecting fears of an economic slowdown. French President Emmanuel Macron called U.S. President Donald Trump’s recent 90-day tariff pause “fragile,” noting that it brings more uncertainty than relief.

The tariff pause, which excludes China, has seen Trump ramp up duties on Chinese imports to 145%. Despite signs of possible negotiations with countries like Vietnam and Taiwan, relations with Beijing remain icy. China, for its part, has restricted imports of American films and sanctioned U.S. firms, while maintaining its openness to dialogue—so long as it’s “based on mutual respect.”

As recession fears rise—Goldman Sachs pegs the risk at 45%—and with trade diplomacy hanging by a thread, all eyes are now on whether global economic cooperation can triumph over rising nationalism and protectionism.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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