China announced on Friday, 11 April, 2025 that it will raise tariffs on U.S. imports from 84% to a staggering 125%, effective Saturday, in a sharp escalation of the ongoing trade war with the United States.
The move comes as a direct response to President Donald Trump’s recent decision to increase U.S. tariffs on Chinese goods to 145%, intensifying a conflict that threatens global economic stability.
The Chinese Ministry of Commerce stated that the tariff hike aims to protect national interests amid what it calls “unfair trade practices” by the U.S.
The new duties will affect a wide range of American products, from agricultural goods like soybeans and pork to industrial components and consumer electronics.
This follows a series of tit-for-tat measures, with China previously raising tariffs to 84% after U.S. levies climbed to 104% earlier this week.
Global markets reacted swiftly, with U.S. stocks sliding 2.3% on the Dow Jones Industrial Average as investors braced for higher consumer prices and disrupted supply chains.
In China, the Hang Seng index dipped marginally, reflecting cautious optimism about Beijing’s resolve.
“This is a dangerous game of brinkmanship,” said Dr. Li Wei, an economist at Peking University. “Both sides risk long-term damage to their economies, but China’s leadership sees this as a necessary stand against perceived bullying.”
In the U.S., reactions were mixed. President Trump, speaking at a rally in Ohio, dismissed the Chinese move as “weak” and vowed to “bring manufacturing back to America.”
However, American farmers, already reeling from earlier tariffs, expressed alarm. “This could wipe us out,” said Iowa soybean farmer Mary Jenkins. “China’s our biggest market, and 125% tariffs make our goods unsellable.”
The National Retail Federation warned that consumers could face price hikes on everything from clothing to electronics by summer.
Internationally, concern mounted. The European Union, which paused its own retaliatory tariffs on U.S. goods for 90 days, urged both nations to negotiate. “A full-blown trade war benefits no one,” said EU trade commissioner Valdis Dombrovskis.
The World Trade Organization reported that global trade could shrink by up to 7% if tensions persist.
As both superpowers dig in, analysts warn of a prolonged standoff. “Neither side wants to blink first,” said trade expert Sarah Kim of the Peterson Institute. “But the longer this lasts, the higher the cost for everyone.”
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