Beijing has retaliated forcefully against the latest round of U.S. tariff hikes, imposing steep new duties of up to 125% on American imports. The move comes in direct response to U.S. President Donald Trump’s decision to raise tariffs on Chinese goods to a staggering 145%, intensifying a trade war that is already shaking global markets and threatening supply chains.
China’s Ministry of Finance condemned the U.S. move in a strongly worded statement on Friday, calling the latest tariff increase “a serious violation of international and economic trade rules.” The ministry accused Washington of “unilateral bullying and coercion,” asserting that the decision defied both common sense and basic economic principles.
The tariff tit-for-tat has reignited investor fears of a prolonged global slowdown, with trillions of dollars in market value wiped out over the past week. Economists warn that the growing friction between the world’s two largest economies could destabilize key sectors, disrupt manufacturing networks, and ultimately push some economies toward recession.
Tensions escalated after the White House singled out China for additional penalties, while temporarily pausing most of the reciprocal tariffs imposed on dozens of other trading partners. On Wednesday, Trump announced a 90-day suspension of tariff hikes for most countries, applying a 10% baseline rate for them—but exempting China from this reprieve and subjecting it to even harsher trade measures.
“China’s unfair trade practices must be addressed,” Trump said earlier this week. “We are putting American workers and industries first.”
Despite the harsh tone, Trump’s announcement of the 90-day pause for other nations brought a measure of relief to global markets. Wall Street and major Asian stock indexes rebounded sharply after several days of losses, as investors welcomed the breathing room for non-Chinese trade relationships.
However, the latest escalation with Beijing could undo those gains. With both nations digging in, analysts say the chances of a near-term resolution are shrinking. The higher tariffs will affect a broad range of goods, from electronics and agricultural products to industrial machinery, potentially driving up costs for businesses and consumers alike.
The U.S.-China trade dispute, once centered around intellectual property and trade imbalances, has now become a broader economic standoff with geopolitical implications. With neither side showing signs of backing down, the global economy may be in for a turbulent ride in the coming months.
As negotiations remain stalled and tariffs continue to rise, business leaders and policymakers around the world are watching closely, hoping the two superpowers can return to the negotiating table before further economic damage is done.
