China announced Friday it will hike tariffs on US goods to 125%, up from the previously planned 84%, in direct response to President Trump’s reciprocal tariff moves. Beijing hinted it would draw a line under further tariff hikes — even if Washington continues its escalations.
The Ministry of Finance of the People’s Republic of China (MOF) said: “The US alternately raising abnormally high tariffs on China has become a numbers game, which has no practical economic significance, and will become a joke in the history of the world economy,” a Commerce Ministry spokesman said in a statement announcing the countermeasure.
“At current tariff levels, US exports to China are no longer commercially viable. If Washington continues its ‘tariff number game’, Beijing will ignore it. But should the US persist in inflicting real harm on China’s interests, China will respond forcefully and without hesitation,” the MOF added.
This move represents another intensification in the US-China trade war, raising concerns about a significant global economic downturn. Following President Trump’s announcement last week of broad “reciprocal” tariffs on all US trading partners, China has been the most affected, with both countries escalating their tariff measures in retaliation.
As my Yahoo Finance colleague Ben Werschkul points out, President Trump’s trade war is now clearly focused on one country: China.
This became evident when the president put a pause on his plans for additional “reciprocal” tariffs — with the exception of those targeting China, the world’s second-largest economy.
On Thursday, the White House clarified that the total base tariff on China is actually 145%, surpassing the 125% initially reported and the figure Trump had hinted at on social media.
This updated figure was revealed when the text of Trump’s executive order to “modify reciprocal tariff rates” was released to the media on Thursday morning.
And now, China has hit back, increasing tariffs on US goods to 125%, escalating the ongoing trade war between the two nations.
