China has raised its tariffs on U.S. goods to 125% from 84% in response to U.S. President Donald Trump’s reciprocal tariff hikes, according to a statement from the Customs Tariff Commission of the State Council.
The statement criticized the U.S. tariffs as economically irrational, stating, “Even if the U.S. continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of the world economy.”
The Trump administration confirmed that U.S. tariffs on Chinese imports now total 145%, further straining trade relations between the two nations.
Hopes for a resolution have dimmed as both sides continue to impose tit-for-tat measures.
U.S. Treasury Secretary Scott Bessent remarked, “It’s unfortunate that the Chinese actually don’t want to come and negotiate, because they are the worst offenders in the international trading system.”
The escalating trade war has prompted Goldman Sachs to cut its forecast for China’s GDP growth to 4%, citing the impact of U.S. trade tensions and slower global growth.
Analysts estimate that 10 to 20 million Chinese workers are tied to U.S.-bound export businesses, highlighting the potential economic fallout.
China has reiterated its stance to “resolutely counter-attack and fight to the end” if the U.S. continues to infringe on its interests.
