On Friday, China announced its intention to increase the tariffs on American goods to 125 percent, from the previous 84 percent. This escalation in trade tensions is a response to the third round of retaliatory measures between the United States and China, which has become an ongoing trade war between the two global superpowers.
The announcement by the State Council, China’s executive branch, followed clarification by Trump administration officials on Thursday that Chinese goods imported into the United States now incur a minimum tariff rate of 145 percent.
China indicated that its newly implemented tariffs would commence on Saturday.
Over the past two weeks, the world’s two superpowers have engaged in a rapid-fire tit-for-tat that has erected progressively higher barriers to trade, causing global market fluctuations and threatening economies worldwide.
This week, President Trump reversed course on the reciprocal tariffs he had imposed on numerous countries but did not halt the escalating levies on China. Instead, he raised the import taxes to 125 percent, following Beijing’s decision to tax American goods at 84 percent.
This ongoing retaliation has compelled American and Chinese companies that rely on each other to abruptly reduce orders and anticipate a potential détente.
Amidst the uncertainty, the White House clarified on Thursday that tariffs on Chinese imports were now set at a minimum of 145 percent. Additional sector-specific tariffs have been imposed on imports of automobiles, steel, aluminum, and other goods that have been subject to levies since Mr. Trump’s first presidency.
On Friday, China’s top leader, Xi Jinping, addressed tariffs publicly for the first time since Washington and Beijing commenced their escalating confrontation.
“There are no beneficiaries in a tariff war, and opposing the global community will only lead to self-isolation,” he asserted.
A spokesperson for China’s Ministry of Commerce stated during a news conference on Friday that the Trump administration’s approach to China was a “numbers game devoid of practical economic relevance.” The spokesperson further characterized the situation as “foolish.”
Initially, China refrained from retaliating with force. However, as President Trump persisted in imposing tariffs, China reciprocated by imposing equivalent levies.
