China Claps Back, Hikes Tariffs on US Goods To 125% After Trump’s 145% Levy — No End in Sight to Trade War

China has announced a new 125% tariff on US imports, which comes into effect tomorrow, as reported by Reuters.  Beijing declared that it would not retaliate against any additional US tariffs.

This is more than the 84% that was declared on Wednesday.  The current US tariff on Chinese imports is equivalent to this. It's consistent with the trend that has emerged in this trade battle, in which China has been matching US-imposed tariff increases.

China's Response and Criticism

China's Finance Ministry criticized the U.S. actions as violations of international economic principles and trade rules. The ministry labelled the U.S. practices as "unilateral bullying and coercion," representing Beijing's serious disapproval of the Trump administration's trade policies. 

"The U.S. imposition of abnormally high tariffs on China seriously violates international and economic trade rules, basic economic laws and common sense and is completely unilateral bullying and coercion," China's Finance Ministry said in a statement, reported by Reuters.

Also Read: US Slaps 145% Tariff on China; India In Exempted List While Japan, Others Rush to Negotiate

Trade War Continues

As the trade battle between the US and China over Donald Trump 's worldwide tariffs intensifies, China hikes tariffs on US imports to 125%.  CNN reported that Beijing faces a 145% tax on several of its US-imported items.

"There are no winners in a tariff war," says President Xi Jinping, urging the EU to stand with Beijing against US "bullying."

On April 11, 2025, China revealed a sharp rise in tariffs on U.S. imports, increasing them from 84% to 125%. This action directly reacts to U.S. President Donald Trump's previous move to raise tariffs on Chinese products to 145%, escalating the current trade war between the world's two biggest economies.

Stock Market Reaction

As of April 11, 2025, U.S. stock markets are facing sharp declines amid rising global trade tensions. Wall Street stocks plummeted sharply on Thursday amid increasing worries over Trump's persistent trade wars. 

All three major US stock indexes plunged deep losses, losing the majority of the gains they registered a day earlier. While on one side S&P was down 3.5% on Thursday, the Dow Jones Industrial Average also plummeted by 2.5%. Nasdaq also fell 4.3%.