China announced it would impose a 125% tariff on US goods starting Saturday, following US President Donald Trump’s decision to raise levies on Chinese imports to 145%.
The Chinese finance ministry said that further US actions would be ignored, arguing that the current level of tariffs
makes American goods economically unviable in China. Beijing described Trump’s tariff hikes as irrational and
economically meaningless, calling them a “numbers game” with no real benefit.
The Chinese commerce ministry further stated that any additional measures from the US side would have no
practical impact due to the already high tariff barrier. The latest move deepens trade tensions between the world’s two largest economies.
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Trump, defending his stance, acknowledged the transition pains but predicted a “beautiful” economic outcome. He
paused some tariffs for 90 days to ease global market concerns but kept the pressure on China. The volatility in the
markets, however, has caused panic across financial hubs, with global stocks tumbling and gold prices hitting new highs.
China, meanwhile, has declared its intention to file a lawsuit against the US at the World Trade Organization, citing
repeated violations of global trade rules. President Xi Jinping has called on the European Union to join forces against
what he labeled as US “unilateral bullying,” emphasizing the need to uphold international fairness.
European leaders responded cautiously. While the EU held off retaliatory measures, it reiterated readiness to act if
talks collapse. French President Emmanuel Macron urged the bloc to stay prepared, while Ursula von der Leyen hinted
at possible digital levies as countermeasures.
As economic diplomacy intensifies, China is moving to build global alliances, with President Xi scheduled to visit
Vietnam, Malaysia, and Cambodia. Trump’s tariffs have not only rattled markets but also pushed allies and rivals alike to reconsider trade alignments, signaling that the global economic order is facing a turbulent reshaping.
