China Responds with Steep Tariff Increase on U.S. Goods as Trade Rift Deepens
Beijing announced on Friday a significant hike in import duties on American goods, raising tariffs from 84% to 125%. The move marks the latest escalation in a protracted trade conflict between the world’s two largest economies — one that continues to unsettle global markets and stir concerns of a potential economic downturn.
While U.S. President Donald Trump temporarily suspended tariffs for several trading partners earlier this week, China was excluded from that relief. Instead, the total U.S. tariff burden on Chinese products climbed to 145%, prompting swift retaliation from Beijing. Chinese officials condemned Washington’s tactics, labeling them as “economic intimidation,” and confirmed that the new tariffs would take effect on Saturday.
In a firm statement, a spokesperson from China’s Finance Ministry said the U.S.’s pattern of repeatedly increasing tariffs risks becoming “a global economic farce.” However, they warned that if the U.S. continues to infringe on China’s trade interests, the country is prepared to respond with unwavering force.
China’s Commerce Ministry also declared its intention to file a fresh complaint with the World Trade Organization, arguing that Washington’s measures violate international trade rules.
Speaking during a diplomatic meeting with Spain’s Prime Minister, Chinese President Xi Jinping emphasized China’s long-standing tradition of self-reliance, saying the country had grown through perseverance, not by seeking handouts. He stressed that China will not be intimidated by unjust pressure or coercive tactics.
The tariff tit-for-tat has already sent shockwaves through financial markets. Though investors were briefly relieved when the U.S. paused tariff hikes for some countries, the targeted pressure on China has kept fears of a broader global recession alive. Analysts have warned that the deepening trade tensions between the two largest economies could trigger a significant slowdown in international growth.
China’s latest tariff increases target key U.S. exports, including soybeans, aerospace components, pharmaceuticals, and other critical goods. In addition, Beijing has recently suspended imports of sorghum, poultry, and bonemeal from certain American companies. It also expanded export controls on rare earth elements, essential materials used in high-tech industries.
On the other side, the U.S. continues to import large quantities of Chinese goods such as consumer electronics, industrial machinery, and toys — sectors that are likely to feel the pinch from tariffs now totaling 145%. American consumers and businesses may soon face higher costs as a result.
While Trump officially announced the 125% tariff increase earlier this week, he did not follow through on a previously discussed 20% penalty tied to China’s alleged involvement in fentanyl production.
White House officials maintain that these aggressive trade actions are intended to boost domestic manufacturing and bring production back to the U.S. However, economists warn that the expected economic benefits may take years to appear — if they materialize at all — and come with significant short-term risks.