Tariff War: China Slaps 125% Tariffs on U.S. Goods in Retaliation to Trump’s 145% Hike

In a dramatic escalation of trade tensions, China announced on April 11, 2025, that it would raise tariffs on all U.S. imports from 84% to a staggering 125%, effective April 12. This move comes in direct response to President Donald Trump’s recent decision to increase tariffs on Chinese goods to 145%, intensifying the ongoing trade war between the world’s two largest economies.

China’s Ministry of Finance condemned the U.S. action as a violation of international trade norms, labeling it “unilateral bullying and coercion.” The ministry stated that the tariff hike is a necessary countermeasure to protect China’s economic interests and uphold the multilateral trading system.

The escalating tit-for-tat tariffs have sent shockwaves through global markets, raising concerns about the potential for a prolonged trade conflict that could disrupt international supply chains and dampen economic growth. Economists warn that the increased tariffs may lead to higher consumer prices and reduced business investment, both in the U.S. and globally.

In addition to the tariff increases, China has signaled its willingness to employ other retaliatory measures. These could include targeting key U.S. exports such as soybeans, oil, and airplanes, as well as restricting activities of prominent American companies through export controls and blacklists. China may also consider limiting rare earth mineral exports critical to various U.S. industries and holds the option of selling off $761 billion in U.S. debt, a potential “nuclear option” with mutual economic repercussions.

As the trade war intensifies, businesses and consumers alike are bracing for the impact of these sweeping tariffs. The situation underscores the complexities of global trade relations and the far-reaching consequences of protectionist policies.

Stay tuned for further updates as this story develops and the global economic landscape continues to evolve.