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Major Escalation in Trade War: China Raises Tariffs on US Goods to 125%
China Raises Tariffs on US Goods to 125% Amid Intensifying Trade War
In a major escalation of the ongoing US-China trade war, China’s Ministry of Finance announced on Friday that it will raise tariffs on all American imports from 84% to 125%, effective April 12.
The ministry stated:
“Even if the US continues imposing higher tariffs, it will be economically meaningless and become a joke in the history of global economics.”
Beijing accused Washington of violating international trade laws and economic principles, describing the unilateral American actions as economic bullying and coercion.
This development follows recent moves by former US President Donald Trump, who, according to a White House official speaking to CNBC, increased tariffs on Chinese goods to 145% through a series of executive orders issued this week.
The same official added that the new executive order raised tariffs from 84% to 125%, in addition to a prior 20% tariff increase, signaling a major escalation in tensions between the world’s two largest economies.
In retaliation, China imposed reciprocal tariffs and broad restrictions on US companies, dashing hopes for a swift trade agreement between the two nations.
Meanwhile, Goldman Sachs (NYSE: GS) revised its forecast for China’s GDP growth down to 4%, citing the negative impact of US trade tensions and global economic slowdown.
Analysts at the bank noted that while Chinese exports to the US only account for 3% of GDP, the employment impact is significant, with an estimated 10 to 20 million Chinese workers involved in export-related industries.
