Beijing, April 11, 2025 – In a dramatic escalation of the ongoing trade dispute with the United States, China announced today that it will increase tariffs on all U.S. imports from 84% to 125%, effective April 12. The move comes as a direct response to the U.S. administration’s recent decision to hike tariffs on Chinese goods to 145%, intensifying a trade war that threatens to disrupt global markets and supply chains.
The Chinese Ministry of Finance issued a statement accusing the U.S. of “economic bullying” and vowed to “fight to the end” to protect its interests. “The U.S. imposition of abnormally high tariffs on China is a violation of basic economic principles,” the ministry said, adding that it would “ignore any further tariff increases” from Washington, dismissing them as unsustainable.
The decision follows a series of tit-for-tat measures between the world’s two largest economies. Earlier this week, U.S. President Donald Trump raised tariffs on Chinese imports to 125%, citing a lack of respect for global markets. A subsequent clarification from the White House revealed that additional duties, including a 20% tariff tied to fentanyl-related measures, brought the total U.S. rate to 145%. China’s retaliatory hike to 125% affects a wide range of U.S. goods, including soybeans, aircraft parts, pharmaceuticals, and other key exports.
Global markets reacted swiftly to the news, with major indices in Europe and Asia sliding further into the red. Investors fear that the escalating trade war could trigger a global economic slowdown, with disruptions to supply chains already causing uncertainty for businesses worldwide. In the U.S., small businesses and consumers are bracing for higher prices, as the cost of imported goods like electronics, clothing, and toys is expected to rise sharply.
Chinese President Xi Jinping, speaking during a meeting with European leaders, reiterated his stance that “there are no winners in a tariff war.” He called on the European Union to resist U.S. pressure and deepen trade ties with China, signaling an effort to build alliances amid the growing economic rift with Washington.
Analysts warn that the latest tariff hikes could have far-reaching consequences. “This is a high-stakes game of brinkmanship,” said Dr. Li Wei, an economist at Beijing University. “Both sides are digging in, and the collateral damage could destabilize global trade for years to come.” In the U.S., critics of the tariff policy argue that it risks fueling inflation and alienating trading partners, while supporters claim it will incentivize domestic manufacturing.
The Chinese commerce ministry indicated that the 125% tariff rate may not be the ceiling, hinting at further measures if the U.S. continues to escalate. Meanwhile, Beijing has lodged complaints with the World Trade Organization, accusing the U.S. of violating international trade rules.
As the trade war deepens, businesses and consumers on both sides of the Pacific are left grappling with uncertainty. With no immediate resolution in sight, the global economy faces a turbulent road ahead.
This is a developing story. More updates to follow as events unfold.
