China hikes tariffs on U.S. imports, reaching up to 125%

China hikes tariffs on U.S. imports

News: China raise tariffs on U.S. imports to 125% from April 12 in response to the U.S. increasing its own duties to the same level.

This escalation follows a series of tit-for-tat tariff hikes between the two nations, beginning with President Trump’s 34% tariff on Chinese imports.

China initially matched the increase, prompting the U.S. to boost its rate to 50%, which led China to announce an 84% tariff. Now, both have reached 125%. However, China’s Ministry of Finance stated it won’t retaliate further if the U.S. raises duties again, warning U.S. goods will become unmarketable. The WTO warns the ongoing trade war could shrink U.S.-China trade by 80% and cut global GDP by nearly 7%.