China Raises Tariffs on U.S. Goods to 125%

On 11th April 2025, China increased levies on U.S. goods to 125% in retaliation to US President Trump’s hike to 145% on Chinese imports, escalating the ongoing trade war.

Key Points

Tit-for-Tat Tariffs: Both countries now impose tariffs on 100% of each other’s goods, effectively halting bilateral trade.
China’s Statement: The Finance Ministry condemned the U.S. action as "unilateral bullying" and “a joke in world economics.”
No Further Retaliation in Kind: China signalled this would be its last reciprocal move, but left open the option for alternative countermeasures.
Other U.S. Targets: China restricted Hollywood films and issued travel and education advisories for the U.S., particularly Ohio.
Economic Fallout: Analysts warn that tariffs over 35% make trade unviable, with the Peterson Institute citing current U.S. tariffs on China at 135%.
Seeking Alliances: China is turning to global partners. President Xi called for EU-China unity and is set to tour Southeast Asia next week.
EU Talks Restarted: China and the EU agreed to restart negotiations on trade relief and electric vehicle pricing, hinting at a truce.