Trade War: China raises tariffs to 125% in response to Trump’s 145% tariff hike

China announced on Friday that it will raise tariffs on U.S. imports to 125%, responding to U.S. President Donald Trump’s latest move to increase duties on Chinese goods to 145%.

This sharp escalation has raised concerns about major disruptions to global trade and supply chains.

The U.S. earlier this week increased tariffs on Chinese imports, while pausing similar hikes on dozens of other countries. China, calling the move “economic bullying,” warned of strong countermeasures—and has now delivered.

China’s Finance Ministry said, “The U.S. imposition of abnormally high tariffs on China seriously violates international and economic trade rules, basic economic laws, and common sense. It is completely unilateral bullying and coercion.”

Effective Saturday, tariffs on many U.S. goods will rise from 84% to 125%. This move comes just days after President Trump announced a total of 145% in tariffs targeting China, which includes a 20% duty tied to China’s role in the production of fentanyl.

Trump’s strategy has drawn criticism from business leaders and U.S. trade partners, many of whom warned that rising tariffs could trigger a recession. While the U.S. has paused tariff hikes for other countries, its dispute with China continues to grow.

“The U.S. raising tariffs has become a numbers game with no practical economic benefit,” said a spokesperson from China’s Finance Ministry. “It will become a joke in the history of the world economy. But if the U.S. continues to hurt China’s interests, we will fight to the end.”

China’s Commerce Ministry also confirmed that it is filing another complaint with the World Trade Organization (WTO) over the U.S. tariffs.

Last week, China suspended sorghum, poultry, and bonemeal imports from certain U.S. companies. It also imposed stricter export controls on rare earth minerals materials essential for high-tech industries and restricted sales of dual-use goods to several American firms.

Experts warn the trade war could have serious global consequences. WTO Director-General Ngozi Okonjo-Iweala said earlier this week that the ongoing dispute “could severely damage the global economic outlook.”

As the world’s two largest economies raise tariffs against each other, businesses and global markets are bracing for more uncertainty.

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