BEIJING/NEW DELHI – China said on Friday it would raise tariffs on U.S. goods to 125% from 84%, retaliating against Washington’s latest escalation in the ongoing trade dispute between the world’s two largest economies.
The announcement came just days after U.S. President Donald Trump hiked tariffs on Chinese imports to 145%, citing what he described as a “lack of respect” from Beijing. The White House had earlier imposed a 104% tariff earlier in the week, prompting China to first raise its duties from 34% to 84%. China’s Finance Ministry said the new tariffs would take effect on Saturday, and warned that further moves by Washington would be ignored.
“At the current tariff level, there is no possibility of market acceptance for U.S. goods exported to China,” the ministry said in a statement. “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 the Commerce Ministry said the U.S. should bear “full responsibility” for the global economic turbulence sparked by the tariff battle. “Washington’s levies have caused the current world economy, global markets and multilateral trading systems to suffer serious shocks and severe turbulence,” the spokesperson added.
The tariff escalation came as Chinese President Xi Jinping met Spanish Prime Minister Pedro Sanchez in Beijing. Xi urged the European Union to work with China to oppose what he called “unilateral bullying” by the United States. “China and Europe should fulfill their international responsibilities… and jointly resist unilateral bullying practices,” Xi said, according to state news agency Xinhua. He added that this cooperation would help “safeguard international fairness and justice.”
Despite the mounting tensions, Trump struck a conciliatory tone in remarks at the White House earlier this week, calling Xi a “smart man” who “loves his country.” “I think he’s going to want to make a deal. I think that’s going to happen. We’ll get a phone call at some point, and everything will be ready,” Trump said.
Earlier this week, Trump also announced a 90-day pause on new tariffs affecting countries other than China, a move Beijing said came partly due to pressure from Chinese diplomats. The tit-for-tat tariff hikes have raised concerns among analysts and businesses about prolonged disruptions to global supply chains and weakened investor confidence.
