Trade war deepens: China hits US imports with 125% tariff hike
PTC Web Desk: In an escalating trade dispute, China’s Ministry of Finance announced on Friday that it has increased tariffs on US imports from 84% to 125%, condemning Washington's actions as a blatant violation of international trade norms. The move comes in direct response to the latest round of steep tariff hikes announced by US President Donald Trump earlier this week.
"The United States’ imposition of excessively high tariffs on Chinese goods severely breaches international economic and trade regulations, defies basic market principles, and reflects unilateral bullying and coercion," the Chinese Finance Ministry stated, according to Reuters.
Beijing warned that it would not back down if the US continues to take aggressive steps. “If the US insists on substantially infringing on China’s interests, China will take firm countermeasures and fight to the end,” the ministry added. Despite the heightened trade tensions, the ministry said China would disregard further US tariff hikes on its exports.
Amid growing economic tensions, Chinese President Xi Jinping has called on the European Union to collaborate with Beijing to counter what he described as “unilateral bullying” by the United States. Addressing the EU leadership, Xi emphasized the shared responsibility of China and Europe to safeguard global trade norms and maintain international fairness.
“China and Europe should fulfill their international responsibilities and jointly resist unilateral bullying practices,” President Xi was quoted by AFP as saying.
Trump’s tariff strategy: A 145% wall
Earlier this week, President Trump announced a 125% tariff on Chinese goods, which added to an existing 20% levy imposed earlier in the year. This effectively brings the total tariff burden on Chinese imports to 145%. The US administration has justified the sharp increase in tariffs by linking it to China's alleged involvement in fentanyl production and export.
In response to Washington's aggressive stance, China had earlier imposed an 84% tariff on all US imports. Despite these retaliatory measures, Chinese authorities have left the door open for dialogue while simultaneously taking steps to stabilize domestic markets. State-backed funds have reportedly been purchasing equities and exchange-traded funds to support investor confidence.
However, the rising friction between the two largest economies has led global investors to reevaluate their positions. As reported by Bloomberg, three of the top US-listed ETFs tracking Chinese stocks witnessed a sharp selloff on Wednesday, with investors pulling out nearly $1 billion in a single day.
While Beijing continues to signal a willingness to engage in dialogue, it has also made it clear that it will not tolerate continued economic pressure from the US without firm retaliation.
- With inputs from agencies
