BEIJING — China has responded to U.S. tariffs by increasing its own tariffs on American products, escalating them from 84% to 125%, effective this Saturday.
The U.S. and China are intensifying a new trade conflict through reciprocal tariff increases. This occurs even as U.S. President Donald Trump has temporarily suspended tariffs on other nations. China had previously stated its intention to counter U.S. tariffs, denouncing Trump’s policies as “economic bullying.” Trump responded by continually raising tariffs throughout the week.
Trump’s overall tariffs on China amount to 145%. When Trump declared on Wednesday that China would face 125% tariffs, he did not include the existing 20% tariff on China linked to its role in fentanyl production.
Business leaders have warned that Trump’s actions could lead to a recession, and some of the U.S.’s major trade partners retaliated with their own import taxes before the pause. However, Trump and China have persisted in raising tariffs in a back-and-forth manner.
A Finance Ministry spokesman stated that the U.S.’s repeated imposition of unusually high tariffs on China has become a meaningless numbers game with no real economic impact, destined to be seen as a joke in economic history. The statement was released alongside the announcement of the new tariffs. The spokesman further added, “However, if the US insists on continuing to substantially infringe on China’s interests, China will resolutely counter and fight to the end.”
China’s Commerce Ministry announced that it is submitting another lawsuit to the World Trade Organization (WTO) challenging the U.S. tariffs.
Last week, Beijing halted imports of sorghum, poultry, and bonemeal from certain U.S. companies. They also increased export controls on rare earth minerals, which are vital for numerous technologies, and added several dozen American businesses to lists restricting Chinese companies from selling them dual-use goods.
Due to the scale of both economies, experts are concerned about potential global economic instability.
The head of the WTO, Ngozi Okonjo-Iweala, stated earlier this week that the trade war between the U.S. and China could seriously harm the global economic future.
