Tariff War
China raises tariff on US goods to 125% as trade war escalates
This story was originally published at 14:58 IST on 11 April 2025
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NEW DELHI – China on Friday announced it was increasing tariffs on US goods from 84% to 125%, intensifying the ongoing trade war between the world's two largest economies. The 125% tariff will come into effect on Saturday. Beijing's retaliation came in response to 125% tariffs US President Donald Trump announced on Chinese goods on Wednesday.
The White House, however, clarified that US tariffs on China totalled 145%, not the 125% initially reported.
According to an official release issued by China's Ministry of Finance, the tariff increase measures on goods imported from the US will be adjusted in accordance with the tariff law of the People's Republic of China and various other laws and regulations, including basic principles of international law. Beijing also stated that if Washington continued to impose tariffs on Chinese goods exported to the US, China would ignore it.
Criticising the US action, Beijing asserted that the imposition of abnormally high tariffs on China seriously violated international economic and trade rules. China termed the US action a "unilateral bullying and coercion".
On Wednesday, Trump increased tariffs of Chinese goods to 125% with immediate effect, citing "lack of respect that China has shown to the World's Markets." Trump also declared a 90-day pause and dropped the tariffs to 10% during this period on most countries that didn't retaliate to reciprocal tariffs imposed by the US. He, however, excluded China from the list.
On Apr. 2, the US president announced discounted reciprocal tariffs on countries to address what he perceived as unfair trade practices by other countries and to reduce the US trade deficit. He imposed a 26% duty on goods imported from India. Trump also imposed tariffs on various other countries, including China (32%), the European Union (20%), Vietnam (46%), Japan (24%), the UK (10%), Indonesia (32%), and Taiwan (32%).
While India and most other countries didn't retaliate, China responded with retaliatory tariffs of 34% on US goods. Trump then increased duties on Chinese goods to 104%. Refusing to bend, China on Wednesday increased tariffs on the US to 84%. End
Reported by Kuldeep Singh
Edited by Avishek Dutta
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