China Boosts Tariffs on US Goods to 125% Amid Intensifying Trade War

U.S. consumers and businesses brace for rising prices on electronics, industrial equipment, and toys as China has announced a significant increase in tariffs on American goods.

On Friday, Chinese authorities revealed plans to elevate tariffs on U.S. imports from 84% to 125%. This move intensifies the ongoing trade war between the two economic giants and has raised concerns about potential market instability and a global economic downturn.

Simultaneously, despite U.S. President Donald Trump halting import taxes for several countries, he increased tariffs on China to a total of 145%. The Chinese government labeled this action as “economic bullying” and indicated that they would implement countermeasures starting Saturday.

A spokesperson for China’s Finance Ministry criticized the U.S. strategy, stating, “Washington’s repeated jacking up of tariffs will become a joke in the history of the world economy.” The ministry warned that continued U.S. interference would lead to resolute Chinese resistance.

Additionally, China’s Commerce Ministry announced intentions to file yet another lawsuit with the World Trade Organization regarding these tariffs, which underscore the ongoing tensions between the nations.

Market analysts express concern that the unpredictable nature of Trump’s trade policies could spark a recession. Though the temporary pause in tariffs for most countries provided brief relief, worries about the implications of a strained U.S.-China economic relationship persist.

According to Ngozi Okonjo-Iweala, head of the WTO, the conflict has the potential to “severely damage the global economic outlook.”

Chinese tariffs target key American exports, such as soybeans, aircraft, and pharmaceuticals. Recent actions from China include halting imports of sorghum and poultry from specific U.S. suppliers and imposing stricter export controls on rare earth minerals.

Conversely, notable U.S. imports from China consist mainly of electronics, including computers and smartphones, along with industrial machinery and toys. The new tariffs are expected to lead to price increases across these product categories.

While Trump highlighted the new 125% tariff on China, he excluded a separate 20% tariff associated with China’s involvement in fentanyl production. White House officials remain optimistic that these import taxes will stimulate domestic manufacturing, a goal that carries significant political risk and may take considerable time to achieve.