• China raises tariffs on U.S. imports from 84% to 125% in response to escalating trade tensions, while the U.S. imposes a total of 145% tariffs on Chinese goods.
• Beijing warns of reduced market demand for U.S. imports and insists on negotiations only “on an equal footing.”
• Trade tensions impact China’s economy, with GDP forecasts cut to 4% and millions of jobs at risk in export-dependent industries.

China announced on Friday that it has increased tariffs on U.S. imports from 84% to 125%, in retaliation against President Donald Trump’s reciprocal tariffs, according to the Chinese finance ministry. This sharp escalation further intensifies the ongoing trade conflict between the world’s two largest economies, leaving little room for resolution.

U.S. Tariff Hikes and China’s Countermeasures

The Trump administration recently confirmed that U.S. tariffs on Chinese imports now total a staggering 145%, following a series of increases, including a 20% tariff on fentanyl-related goods earlier this year. In response, China declared its unwavering stance, stating, “Even if the U.S. continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of world economy,” per a CNBC translation. Beijing also warned that there is “no longer a market for U.S. goods imported into China.”

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In a separate statement, China’s commerce ministry reiterated its willingness to negotiate—but only “on an equal footing.” Despite this, hopes for a trade resolution have dwindled as tit-for-tat tariffs and restrictions on American businesses continue to escalate.

U.S. Officials Criticize China’s Economic Practices

Meanwhile, U.S. Treasury Secretary Scott Bessent expressed frustration, labeling China “the worst offenders in the international trading system.” Speaking to Fox Business, Bessent remarked, “They have the most imbalanced economy in modern history, and this escalation is a loss for them.” These comments reflect a growing divide between Washington and Beijing over trade policies.

Economic Impact on China

The trade tensions are already taking a toll on China’s economy. Goldman Sachs has reduced its China GDP forecast to 4%, citing slower global growth and the drag from U.S.-imposed tariffs. Analysts estimate that between 10 million to 20 million Chinese workers are employed in industries tied to U.S.-bound exports, making the stakes for both nations incredibly high.

China’s determination to “resolutely counter-attack and fight to the end” underscores the entrenched positions on both sides of this economic dispute. What are your thoughts on these developments? Drop your comments below!

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