China's 125% tariff counter to Trump's 145% levy, vows to 'fight till end'
New Delhi, Apr 11, 2025
China raises tariffs on US goods to 125%, warns of firm retaliation if Washington continues to 'infringe' on its interests
China has fired back at the US in the ongoing trade war, raising additional tariffs on American goods from 84 per cent to a steep 125 per cent. The move comes after US President Donald Trump imposed a 145 per cent tariff on some Chinese goods, further straining trade ties between the world’s two largest economies.
“If the US insists on continuing to infringe upon China's interests in a substantive way, China will resolutely take countermeasures and fight to the end,” China’s finance ministry said on Friday, as quoted by Reuters.
“If the US continues to impose additional tariffs on Chinese goods exported to the US, China will ignore it,” it added.
Xi Jinping urges EU to resist US ‘bullying’
As tensions escalate with Washington, Chinese President Xi Jinping has called on the European Union to form a united front with Beijing against Trump's “unilateral bullying."
"China and Europe should fulfil their international responsibilities... and jointly resist unilateral bullying practices," Xi was quoted by AFP as saying during a meeting with EU officials.
Trump’s tariff blow: 145% on China
Trump’s sweeping tariff package on China now totals 145 per cent, which includes a new 125 per cent general tariff and an additional 20 per cent aimed at punishing Beijing for its alleged role in the US fentanyl crisis. This aggressive tariff hike, announced on Thursday, has drawn global attention and triggered immediate backlash from Beijing.
Before China’s latest retaliation, Trump had already raised tariffs on Chinese goods to 104 per cent. In response, China initially slapped an 84 per cent duty on all US imports earlier this week — a figure that was swiftly revised to 125 per cent after Washington’s new sanctions.
China vows to fight, but leaves door open for talks
Despite tough talk from Beijing, Chinese officials have left the door open for dialogue. On Tuesday, authorities pledged to “fight to the end” but also expressed a willingness to engage with the US to resolve the issue.
To cushion market volatility, China has taken steps to stabilise its domestic markets. According to reports, state-backed funds have been actively purchasing stocks and exchange-traded funds (ETFs) to support investor confidence.
Global markets react: Investors dump Chinese stocks
The mounting tariff war has spooked global investors. According to Bloomberg, three of the largest US-listed ETFs tracking Chinese stocks witnessed a massive selloff on Wednesday, with nearly $1 billion in shares dumped in a single day. While Chinese equities have shown some resilience, the ongoing tensions have prompted several global funds to cut their exposure to Chinese assets.
As the US and China dig deeper into their trade standoff, the ripple effects are being felt worldwide — from diplomatic relations to stock markets. With both sides doubling down, analysts warn that a prolonged conflict could reshape global supply chains and destabilise already fragile economies.
(With agency inputs)
[The Business Standard]
