China raises tariffs on US to 125% in latest escalation of trade war
China has increased its tariffs on US imports from 84% to 125% after Donald Trump hit Beijing with a 125% rate – despite pausing tariffs for other countries.
The US tariff rate on Chinese imports now effectively totals 145%, after Trump’s latest executive order boosted reciprocal tariffs on Beijing to 125%, combined with a 20% fentanyl-related tariff imposed in February and March.
In a statement, China’s finance ministry said: ‘Even if the US continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of world economy.’
It continued: ‘At the current tariff level, there is no market acceptance for US goods exported to China. If the US continues to play the tariff numbers game, China will ignore it. However, if the US insists on continuing to substantially infringe on China’s interests, China will resolutely counterattack and fight to the end’.
China’s finance ministry said the increase will take effect from April 12, marking the latest escalation in the trade war between the world’s two biggest economies.
Speaking to Spanish Prime Minister Pedro Sanchez in Beijing on Friday, Chinese leader Xi Jinping said: ‘There are no winners in a trade war, and going against the world will only lead to self-isolation.
‘For over 70 years, China’s development has relied on self-reliance and hard work — never on handouts from others, and it is not afraid of any unjust suppression’.
Earlier this week, President Trump announced a 90-day pause for countries hit by higher US tariffs, but China was exempt.
In a recent social media post, Trump said: ‘Based on the lack of respect that China has shown to the world’s markets, I am hereby raising the tariff charged to China by the United States of America to 125%, effective immediately’.
Stock markets around the world had plunged to almost record-low levels after tariffs went into effect, but the 90-day pause prompted a recovery in market prices.
The European Union said they would also pause their planned tariffs on US goods after Trump’s announcement, but said ‘all options remain on the table’.
However, European stock markets fell this morning, reversing gains after China raised tariffs on US imports.
Meanwhile, Beijing has imposed restrictions on doing business with nearly a dozen US companies and said it was launching a new challenge to the American tariffs at the World Trade Organisation.
China does not appear interested in entering into a bargaining negotiation, as some other countries have started doing.
Foreign Ministry spokesman Lin Jian previously said: ‘If the US truly wants to resolve issues through dialogue and negotiation, it should adopt an attitude of equality, respect and mutual benefit.’
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