Trade War 2.0: China Ups The Ante On Trade Conflict Against America, Raises Tariffs on US Goods To 124%

Trade War 2.0: Trade War 2.0: Unfazed by United States President Donald Trump's tariff hike to 145%, China has raised its retaliatory tariffs on American goods to 125%. The development has raised concerns across the world of a full-blown trade war between the two nations.

Opposing US's tariffs announcement, which it labelled as "unilateral bullying and coercion", China made it clear that it will no longer increase tariffs anymore. China's Finance Ministry also added that any further tariff hike by the US will make it a joke in the history of world economy.

Donald Trump on Wednesday took U-turn on tariff announcement and imposed a 90-day pause on tariffs imposed on more than 108 nations on April 2, however, China was an exception.

'If US Continues, China Will Ignore'

In the continuous back-and-forth between the US and China trade conflict, China on Friday reacted to Donald Trump's recent announcement of imposing 145% tariff hike on America. While announcing a phenomenal increase in retaliatory tariffs against US, China maintained that America will not benefit from imposing higher tariffs. Beijing also added that there is 'no market acceptance for US goods exported to China.'

"Adjust the tariff rate stipulated in the "Announcement of the State Council Tariff Commission on Adjusting the Tariff Measures on Imports Originating in the United States" (Tax Commission Announcement No. 5 of 2025) from 84% to 125%. Given that at the current tariff level, there is no market acceptance for US goods exported to China. If the US continues to impose tariffs on Chinese goods exported to the US, China will ignore it," read a statement by China's Finance Ministry.

'US Will Become Joke in The History of World Economy'

While making its intention clear to no longer increase tariffs on US, China added that any further tariff hike by America will not make any sense and it will become a joke in the history of world economy.

"Even if the US continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of world economy," said the Finance Ministry in a statement, according to Euro News.

Donald Trump Imposes Additional 125% Tariffs on China

Donald Trump on Wednesday increased additional levies on Chinese goods to 125%. Which means that the total additional tariffs on China increased to 145%.

While announcing a hike in tariffs on China, Donald Trump in a social media post on Wednesday, said that he has authorised a 90-day pause and substantially lower reciprocal tariffs during the period.

"Based on the lack of respect that China has shown to the World's Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A. and other Countries is no longer sustainable or acceptable," read a post by Donald Trump on Truth Social. He also added that more than 70 countries reached out to representatives of the United States.

US-China Trade Tariff war

Tensions around trade conflict began when Donald Trump announced trade tariffs on multiple countries, including India, Canada, UK, China, and Japan on April 2. Manufacturing-focused nations like China and Vietnam were the worst hit due to the announcement as Donald Trump increased tariffs on them to as high as 35%. Donald Trump on April 2 announced that the US would impose 34% tariff on Chinese imports, totalling the percentage of US tariffs on Chinese goods to 54%.

The US-China trade tariffs slugfest went murkier when, Donald Trump on April 8, further increased levies charged on Chinese imports to 104%. China retaliated by imposing 84% tariff on all US goods and maintaining its stance that it will "fight till end".