China Fires Back: Slaps 125% Tariffs on U.S. Goods as Trade War Escalates

By: Manoah Kikekon 

Shipping containers at the Yantian International Container Terminals in Shenzhen, China, on April 7, 2025.Photographer: Qilai Shen/Bloomberg

In a sharp retaliation against the Trump administration, China has imposed staggering 125% tariffs on American imports, intensifying the ongoing trade war between the world’s two largest economies.

 The move comes just a day after the U.S. hiked tariffs on Chinese goods from 10% to 25%, further straining already tense economic relations.  

China’s State Council announced the drastic measure on Friday, condemning Washington’s latest tariff hike as a violation of global trade rules and an act of economic bullying. The Chinese Finance Ministry slammed the U.S. decision, calling it "unreasonable, against market principles, and devoid of common sense."  

In a defiant statement, Beijing declared it will no longer engage in tit-for-tat tariff responses if the U.S. imposes further hikes. "At the current tariff levels, U.S. goods have no competitive market in China," the ministry stated, signaling a hardened stance in the escalating trade battle.  

As tensions reach a boiling point, businesses and investors brace for more economic fallout, with no clear resolution in sight. Will this trade war spiral further, or will negotiations prevail? Stay tuned as the U.S.-China trade conflict takes another dramatic turn.