In a bold retaliatory move, Beijing has announced a 125% tariff on all U.S. imports, effective immediately, in response to Washington’s recent escalation of trade barriers. The decision comes as part of an intensifying tit-for-tat trade war between the world’s two largest economies, with both sides digging in for a prolonged economic standoff.
The Chinese Ministry of Finance stated that the tariff hike, up from a previous 84%, directly counters U.S. tariffs on Chinese goods, which have climbed to 145% when factoring in additional levies tied to issues like fentanyl and immigration.
The U.S., under President Donald Trump, has defended its tariffs as necessary to address trade imbalances and protect domestic industries. Trump recently paused higher tariffs on most other nations for 90 days to pursue negotiations but singled out China for harsher measures, citing its “lack of respect” for global markets. The White House clarified that the total U.S. tariff rate on Chinese imports stands at 145%, incorporating earlier duties.
Economic analysts warn that the escalating trade war could disrupt global supply chains, raise consumer prices, and risk tipping the world into recession. Asian and European markets have already shown volatility, with European shares dropping sharply after Beijing’s announcement, though some Asian stocks ended mixed.
