China announced it would raise tariffs on American goods from 84% to 125% in retaliation to U.S. President Donald Trump’s decision to raise American tariffs on Chinese imports to an effective 145%.
China’s Finance Ministry criticized the U.S. actions as “economic bullying” and stated that further tariff increases would be “a joke” economically and symbolically. Analysts say that tariff levels this high eliminate most profitability, effectively shutting down trade between the two nations. U.S. tariffs now cover everything from electronics to toys, while Chinese countermeasures have targeted soybeans, aircraft parts, and pharmaceuticals.
Chinese officials have engaged with ASEAN members, Gulf nations, and BRICS partners to help counterbalance U.S. pressure. China and the EU have agreed to resume trade talks, including negotiations around electric vehicle pricing. Meanwhile, Chinese President Xi Jinping is set to tour Southeast Asia, where he’ll meet with leaders of Vietnam, Malaysia, and Cambodia to reinforce economic ties.
