China Imposes 125% Tariffs on US Goods, Considers No More Increases

• China labels Trump’s escalating tactics as a “joke”.
• New tariffs from Beijing set at 125% will take effect on Saturday.
• The Chinese finance ministry states that further U.S. actions will be disregarded.
  

On Friday, China announced that it would increase tariffs on American goods to 125%, declaring that any additional levies from President Donald Trump would be ignored as it no longer made economic sense for importers to purchase from the U.S.

Amid a week of market volatility as both nations imposed trade restrictions, Beijing dismissed Trump’s aggressive tactics, calling them a “joke” and merely a “numbers game.”

China accused Trump of destabilizing the market with sweeping tariffs affecting the global economy, stating that the U.S. must take full accountability for the resulting chaos.

In an effort to drive manufacturers to relocate to the U.S. and reduce barriers for American products, Trump has imposed wide-reaching tariffs, including significant increases for numerous major economies.

Following a week of market instability, he momentarily halted many tariffs for a period of 90 days; however, he raised tariffs for China to an astonishing total of 145%.

The latest Chinese retaliation brings its tariffs to 125%, starting Saturday.

Nonetheless, the finance ministry stated that any further U.S. actions would be disregarded, asserting that “at the current tariff level, there’s no chance for acceptance of U.S. goods exported to China.”

According to Beijing’s commerce ministry, the ongoing series of high tariffs imposed by the U.S. have become a meaningless numerical game lacking real economic significance.

A spokesperson proclaimed, “If the U.S. continues with this tariff game, we will ignore it.”

Additionally, Beijing revealed intentions to file a complaint with the World Trade Organization regarding the latest tariff impositions.

‘A Beautiful Outcome’

Despite the global market’s turmoil, Trump recognized that there would be “transition costs and challenges” due to his tariff strategies but dismissed the broader market instability.

“Ultimately, this will lead to a beautiful outcome,” he claimed.

He acknowledged the European Union’s prudence in refraining from retaliatory tariffs.

“They were ready to announce retaliation until they saw our actions concerning China,” Trump explained.

However, Ursula von der Leyen, the head of the 27-nation EU bloc, advised the Financial Times that they have a “variety of countermeasures” prepared if negotiations with Trump falter.

“For instance, we could impose a tax on advertising revenue from digital services across the EU,” she suggested.

French President Emmanuel Macron encouraged the EU to remain proactive in preparing measures against the tariffs, emphasizing that these actions are only paused, not eliminated.

“With the European Commission, we must present a united front: Europe has to continue formulating all necessary countermeasures,” he stated on social media platform X.

During discussions with Spain’s Prime Minister Pedro Sanchez, state media reported Xi Jinping stating that China and the EU should collaborate on this issue.

“China and Europe must fulfill their international obligations… and stand together against unilateral coercive practices,” Xi remarked, stressing that this would not only protect their own rights but also uphold global fairness and justice.

‘No Winners’

Following another decline on Wall Street, Asian markets faced additional pressure on Friday.

Tokyo fell by over four percent, just a day after a more than nine percent surge, while markets in Sydney, Seoul, Singapore, and elsewhere also diminished.

European markets likewise dropped in response to China’s latest retaliatory measures.

Concerns of a global economic slowdown contributed to decreasing oil prices and the dollar, while gold prices soared to a new high, exceeding $3,200, as investors, unsettled by Trump’s unpredictable policies, sold off traditionally stable U.S. Treasury bonds.

“The temporary relief provided by Trump’s tariff pause is rapidly evaporating,” stated Stephen Innes from SPI Asset Management.

“The conclusion is clear: the world’s two largest economies are entrenched in a trade war, and there are no victors.”

‘A Promising Future’

Critics of Trump’s trade policies argue that they are disrupting businesses reliant on intricate supply chains, straining alliances, and increasing costs for American consumers.

Meanwhile, Howard Lutnick, his commerce secretary, shared on social media that “a Golden Age is on the horizon. We are dedicated to safeguarding our interests, engaging in global dialogue, and boosting our economy.”

Trump has also cautioned that the tariffs could be reinstated after the 90-day period.

“If we can’t reach a favorable agreement… we’ll revert to the previous situation,” he indicated.

Canadian Prime Minister Mark Carney welcomed Trump’s tariff pause as “a welcome breather,” stating that Ottawa would initiate talks with Washington on a new economic agreement following the elections on April 28.

Vietnam announced its agreement with the U.S. to commence trade discussions, while a delegation from Pakistan is also heading to Washington.

As China seeks partners against Trump’s trade policy, Xi plans to visit Vietnam, Malaysia, and Cambodia next week, where discussions on tariffs will likely be a significant focus.