China retaliated on Friday against U.S. President Donald Trump’s country-specific tariffs by raising its levies on U.S. goods to 125% from 84%, as reported by the Chinese Finance Ministry.
In a statement translated by CNBC, the ministry declared, “Even if the U.S. continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of world economy.”
The statement continued, highlighting that, “With tariff rates at the current level, there is no longer a market for U.S. goods imported into China,” and adding that, “if the U.S. government continues to increase tariffs on China, Beijing will ignore.”
The Trump administration confirmed to CNBC that the current U.S. tariff rate on Chinese imports has effectively reached 145%.
The escalation comes as Trump’s latest executive order raised tariffs on Beijing to 125%, stacking on top of a combined 20% fentanyl-related tariff imposed earlier in February and March.
Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, stated, “This is the end of the escalation in terms of bilateral tariff rates.
Both China and the U.S. have sent clear messages, there is no point to raising tariffs further.”
He emphasized the importance of evaluating damage to economic activities in both countries and noted the lack of signs indicating that the two governments will restart negotiations to avoid major disruptions to global supply chains.
In contrast to previous rounds of retaliatory measures, China has refrained from announcing additional export control measures or expanding its so-called unreliable entity list by adding more American companies, which would subject them to further operating restrictions in China.
Despite the latest escalation in tariffs, a spokesperson for China’s Commerce Ministry reiterated in a separate statement that Beijing remains open to negotiations with the U.S. on an equal footing.
However, hopes for a resolution of the U.S.-China trade tensions have rapidly diminished.
In recent weeks, Beijing has continuously retaliated with escalatory duties on American products and broad restrictions on U.S. businesses.
U.S. Treasury Secretary Scott Bessent criticized Beijing, stating, “It’s unfortunate that the Chinese actually don’t want to come and negotiate because they are the worst offenders in the international trading system.”
Bessent added, “They have the most imbalanced economy in the history of the modern world, and I can tell you that this escalation is a loser for them.”
On Thursday, Goldman Sachs lowered its China GDP forecast to 4%, citing the negative impacts of U.S. trade tensions and slower global growth.
The investment bank indicated that while Chinese exports to the U.S. account for roughly 3 percentage points of China’s total gross domestic product, the effect on employment remains noteworthy.
Goldman Sachs analysts estimate that between 10 million and 20 million workers in China are engaged in U.S.-bound export businesses.
Furthermore, China has reiterated its commitment to “resolutely counter-attack and fight to the end” if the U.S. persists in infringing upon Chinese interests.
During a meeting with Spanish Prime Minister Pedro Sánchez, Chinese President Xi Jinping remarked, “There is no winner in a tariff war and going against the world will only isolate itself,” according to a CNBC-translated government communiqué.
Both leaders agreed to enhance cooperation in various sectors, including trade, investment, and technological innovation.
The White House did not provide an immediate comment to CNBC regarding the latest developments.
image source from：https://www.cnbc.com/2025/04/11/china-strikes-back-with-125percent-tariffs-on-us-goods-starting-april-12.html
