Beijing (Web Desk): China announced it would sharply increase tariffs on American imports to 125 percent, declaring it would no longer respond to further tariff hikes from President Donald Trump.
According to Beijing, continued engagement with US levies is no longer economically viable, as the cost of importing American goods has simply become untenable.
This development comes after a turbulent week in global markets, where both Washington and Beijing escalated their trade standoff by imposing a series of increasingly punitive trade barriers.
Chinese officials dismissed Trump's latest actions as political theatrics, branding them a “joke” and reducing the tariff battle to a meaningless numbers game.
Beijing placed the blame for the market disruption squarely on Trump, condemning his sweeping tariffs for stirring economic instability worldwide.
Officials stated that the US must accept full accountability for the financial upheaval that has ensued.
Trump has used aggressive trade tactics—including widespread tariff increases on multiple countries—as leverage to encourage domestic manufacturing and push foreign governments to lower trade barriers.
But this week’s volatility appeared to cause a rare retreat from the US president. Trump temporarily paused many tariffs for 90 days, though notably, he increased those targeting China to a striking 145 percent.
In retaliation, China declared its new 125 percent tariffs would take effect Saturday.
But going forward, Beijing made it clear that it would no longer respond to further US actions, arguing that the current rate of tariffs has already rendered American products commercially unviable in the Chinese market.
A spokesperson from China's commerce ministry emphasized that the tit-for-tat tariff war has veered into the realm of symbolic showmanship with little economic merit.
“The US obsession with inflating tariff figures no longer holds practical value,” the spokesperson noted, adding that China would now ignore further provocations.
In addition to its new tariffs, China announced it would initiate legal action through the World Trade Organization to challenge Washington’s latest measures.
While Trump conceded that his strategy has caused “transition costs” and some temporary hardship, he downplayed concerns over financial market instability, insisting that the final outcome would be beneficial.
“Ultimately, this will be something beautiful,” he said. He also commended the European Union (EU) for holding off on retaliatory tariffs, implying that their decision was influenced by the US crackdown on China.
“They were ready to strike back,” Trump said, “but then they saw what we did to China.”
However, European Commission President Ursula von der Leyen told the Financial Times that the EU remains equipped with a robust array of countermeasures should talks with the US deteriorate.
One option she cited included taxing the advertising revenues of digital platforms operating in Europe. French President Emmanuel Macron echoed this sentiment, urging the EU to stay vigilant and prepared. “We need to maintain a strong stance with the Commission. Europe must continue to prepare all necessary responses,” he said in a post on X.
During discussions with Spanish Prime Minister Pedro Sanchez, Chinese President Xi Jinping emphasized that China and the EU should align their efforts.
According to Chinese state media, Xi encouraged a joint defense against unilateral trade aggression, suggesting that such cooperation would protect both their national interests and uphold international fairness.
Global markets remained on edge following these announcements. In Asia, Tokyo dropped more than 4 percent—just a day after a dramatic 9 percent rally—while other key markets like Sydney, Seoul, and Singapore also slid.
European indices fell in response to China’s latest move. Meanwhile, commodities and currencies reflected investor anxiety: oil prices and the U.S. dollar weakened amid fears of a global economic slowdown, while gold surged past $3,200 per ounce, and investors offloaded US Treasury bonds amid mounting uncertainty.
Stephen Innes of SPI Asset Management captured the mood succinctly: “The brief optimism following Trump’s tariff pause is evaporating quickly. At this point, we’re looking at a full-scale trade war between the world’s two largest economies—and nobody wins.”
Critics of Trump’s trade strategy argue that it has disrupted supply chains, alienated close allies, and driven up consumer prices at home. Nevertheless, US Commerce Secretary Howard Lutnick struck an optimistic tone in a social media post, proclaiming, “The Golden Age is coming.
We’re defending our interests, re-engaging globally, and preparing for economic lift-off.”
Trump, for his part, warned that the suspended tariffs could be reinstated after the 90-day reprieve. “If we can’t reach the deal we want, we’ll go back to the previous terms,” he said.
Canada’s Prime Minister Mark Carney welcomed the temporary pause, describing it as a relief and expressing interest in reopening trade negotiations with Washington after their April 28 elections.
Vietnam has agreed to begin trade discussions with the US, and Pakistan is dispatching a delegation to Washington to explore new economic cooperation.
As China seeks to rally support against Trump’s trade agenda, Xi is set to visit Vietnam, Malaysia, and Cambodia in the coming week—where the evolving tariff tensions are expected to dominate the diplomatic agenda.
