China announced on Friday that it will increase tariffs on American goods from 84% to 125%, marking a significant escalation in the ongoing trade dispute with the United States. These new tariffs are set to take effect on Saturday.
In a statement, China’s Finance Ministry criticized the U.S. for imposing excessively high tariffs, claiming such actions breach global trade norms and undermine the international economic order, originally shaped by the U.S. itself after World War II. The ministry also mocked the rising American tariffs, labeling them “a joke” and saying that further increases would no longer be taken seriously or responded to.
According to the statement, U.S. exports to China have already lost market appeal due to existing tariffs, and any additional hikes would be meaningless. Still, China warned that it would retaliate forcefully if its interests continue to be harmed.
Meanwhile, President Trump’s overall tariffs on Chinese goods have reached 145%, according to reports. This figure excludes a 20% tariff related to China’s alleged role in fentanyl production.
The Chinese Finance Ministry also confirmed that it has lodged another complaint with the World Trade Organization over the latest U.S. tariffs.
Following China’s announcement, major European stock markets fell after initially showing slight gains.
Economic experts expressed concern that recession risks have grown significantly. Although President Trump paused tariff increases on other nations for 90 days, he proceeded with steeper tariffs on Chinese imports, signaling that tensions with Beijing remain high.
Analysts suggest China may be open to symbolic negotiations but remain skeptical about the possibility of reaching a broader agreement, citing deep-rooted mistrust and mounting geopolitical tensions between the two powers.
