China Hits Back 125% Tariffs on U.S. Goods

In a dramatic escalation of the ongoing U.S.-China trade dispute, Beijing announced on Friday that it would raise tariffs on American goods to a steep 125%. The move comes as a direct response to President Donald Trump’s recent decision to increase tariffs on Chinese imports to a staggering 145%, despite temporarily freezing other levies for 90 days.

After a chaotic week that sent shockwaves through global markets, China signaled it is no longer interested in playing what it called a “numbers game” with Washington.

According to a statement from the Chinese Ministry of Finance, any further tariff hikes from the U.S. will be ignored, as “at the current tariff level, there is no possibility of market acceptance for U.S. goods exported to China.”

Beijing accused Trump of creating instability in global markets through sweeping and unpredictable tariff measures, blaming Washington for the economic uncertainty rattling investors worldwide.

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“The United States’ imposition of round upon round of abnormally high tariffs on China has become a numbers game with no practical significance in economics,” a spokesperson from China’s Commerce Ministry said. “If the U.S. continues to play this game, China will simply ignore it.”

Trump’s aggressive use of tariffs has been a cornerstone of his “America First” economic strategy—intended to pressure manufacturers to relocate to the U.S. and push trading partners into lowering barriers to American exports.

However, this week’s market turmoil appears to have forced a partial retreat, with the White House pausing some planned tariffs for 90 days. Still, China was not spared from further increases.

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In response, Beijing plans to officially enforce its new 125% tariff rate starting Saturday and is also filing a formal complaint with the World Trade Organization over the escalating trade penalties.

While the trade war primarily pits Washington against Beijing, Europe has also been dragged into the fray. President Trump praised the European Union for holding off on retaliatory tariffs—at least for now. “They were ready to announce retaliation. And then they heard about what we did with respect to China,” Trump said.

But European leaders appear far from passive. European Commission President Ursula von der Leyen told the Financial Times that the EU is ready to hit back if negotiations with the U.S. collapse. “An example is you could put a levy on the advertising revenues of digital services,” she said, signaling that Big Tech could be the target.

French President Emmanuel Macron echoed the sentiment, calling for Europe to stay ready with “all necessary counter-measures.” “Europe must continue to work with the Commission to prepare appropriate responses,” Macron said via X (formerly Twitter).

During diplomatic talks with Spanish Prime Minister Pedro Sanchez, Chinese President Xi Jinping urged closer cooperation between China and the EU in the face of U.S. trade aggression. “China and Europe should fulfill their international responsibilities and jointly resist unilateral bullying practices,” Xi said, calling for a united front to protect global trade norms and fairness.

With both sides digging in and major economies contemplating countermeasures, it’s clear the trade war has entered a new and uncertain phase. For now, markets are bracing for more volatility as global powers jockey for leverage in an increasingly fractured trading system.

Whether these actions will push toward resolution or further entrench division remains to be seen—but one thing is certain: the age of quiet diplomacy in global commerce is quickly giving way to high-stakes economic brinkmanship.