Tensions between China and the United States deepened on Friday after Beijing announced a sweeping increase in tariffs on American imports, raising them to 125% starting Saturday.
The decision comes in direct retaliation to Washington’s latest hike on Chinese goods — a tit-for-tat move that signals little hope for quick relief in the long-running trade conflict.
China’s Finance Ministry confirmed the measure in a strongly worded statement, saying the move was necessary to “safeguard national interests” and respond to what it described as U.S. economic aggression. Earlier this week, the U.S. had imposed a similar 125% tariff rate on Chinese products, a move Beijing criticized as reckless and damaging to global trade stability.
“This action simply reflects what the U.S. administration has done,” a Chinese trade official told reporters. “China does not want a trade war, but we will not be intimidated. If we are pushed, we will push back.”
The Chinese government said the 125% rate replaces an earlier 84% tariff level it had planned, showing a clear intent to match the U.S. step-for-step. Officials also noted that the tariffs would apply across a wide range of products — from agricultural goods and industrial components to consumer electronics and vehicles.
In Washington, U.S. trade officials defended their position, insisting the higher tariffs are part of a broader effort to address long-standing trade imbalances and protect American industry. A spokesperson said the updated rate includes earlier duties, with the total now sitting at 125% for most Chinese imports.
The increasingly harsh rhetoric from both capitals has rattled global markets, with businesses warning of higher prices, supply chain disruptions, and growing uncertainty. Economists fear the latest escalation could dampen growth and complicate recovery efforts already strained by inflation and global instability.
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Back in China, analysts say the government has little choice but to respond firmly to the U.S. position, even if it means more economic strain at home.
“It’s a defensive move more than anything,” said Zhang Li, a Beijing-based trade expert. “The government wants to show strength, but they also don’t want to close the door to talks.”
Despite the tensions, both sides have left a narrow opening for negotiation. Chinese officials reiterated on Friday that they are still open to dialogue — but only if the U.S. shows genuine willingness to compromise.
For now, though, businesses and consumers are bracing for the fallout. With the new tariffs taking effect over the weekend, companies are expected to begin recalculating costs, adjusting supply chains, and passing higher prices down the line.