BEIJING (AP) — On Friday, China announced an increase in tariffs on U.S. goods from 84% to 125% — marking another intense moment in a trade war between the two largest economies in the world, which has unsettled markets and raised concerns about a possible global downturn.
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While U.S. President Donald Trump put a hold on import taxes for various other countries this week, he elevated tariffs on China, which now total 145%. China has criticized this approach as “economic bullying” and has vowed to implement counteractions. The new tariffs take effect on Saturday.
A spokesperson from the Chinese Finance Ministry remarked that Washington’s continuous increases in tariffs “will become a joke in the annals of global economic history.” The spokesperson further stated, “However, if the U.S. persists in significantly violating China’s interests, China will respond resolutely and fight until the end.”
China’s Commerce Ministry indicated plans to lodge another complaint with the World Trade Organization regarding U.S. tariffs.
“There are no victors in a tariff war,” Chinese leader Xi Jinping noted during a meeting with Spanish Prime Minister Pedro Sanchez, as shared by state broadcaster CCTV. “For over 70 years, China has relied on itself and hard work for its development, never seeking favors from anyone, and not fearing any unreasonable suppression.”
Chinese Foreign Minister Wang Yi affirmed on Friday that China will steadfastly oppose Trump’s tariffs to not only protect its own rights and interests but also to “uphold the common good of the global community, ensuring that humanity does not regress into a world where the strongest impose their will.”
Wang’s comments came during a meeting with Rafael Mariano Grossi, Director General of the International Atomic Energy Agency, in Beijing. He stated that China would “collaborate with other nations to jointly resist all regressive actions globally.”
Trump’s inconsistent measures have raised concerns in stock and bond markets, leading some experts to suggest that the U.S. could be on the verge of a recession. There was temporary relief when Trump paused tariffs for most countries, but anxiety remains as the U.S. and China hold the top two positions in the world economy.
“The likelihood that this escalating trade conflict will push the world into a recession is growing as the two largest and most influential countries continue to retaliate with increasingly higher tariffs,” wrote Jennifer Lee, a senior economist at BMO Capital Markets, on Friday. “No one can predict when this will conclude.”
China’s tariffs will impact commodities such as soybeans, aircraft and parts, and medications, which are significant imports from the U.S. Meanwhile, Beijing last week halted imports of sorghum, poultry, and bonemeal from certain American companies and imposed further controls on rare earth minerals, vital for various technologies.
On the other hand, the primary imports from China to the United States include electronics, such as computers and mobile phones, as well as industrial machinery and toys — and consumers and businesses can expect price hikes on these products due to tariffs now reaching 145%.
Trump announced on Wednesday that China would incur 125% tariffs, although a 20% tariff related to China’s involvement in fentanyl production was not mentioned.
White House officials are optimistic that the import taxes will encourage the return of manufacturing jobs to the U.S. — a politically sensitive trade-off that may take years to realize, if it occurs at all.
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