In an escalation of the ongoing trade war, China has retaliated against the US by increasing tariffs on American goods to 125%.
This move comes after the US government announced a similar tariff hike on Chinese goods exported to the US, sparking accusations of breaching international trade regulations.
The Chinese customs department has accused the US of violating international economic and trade rules, basic economic laws, and common sense, calling it “unilateral bullying and coercion”. In response, China has imposed reciprocal tariffs on US products, effective April 12, 2025, ranging from 84% to 125%.
The tariff increases will significantly impact various industries, including electric vehicles, semiconductors, steel and aluminum, lithium-ion batteries, and medical products.
The trade war between the US and China has been ongoing, with both countries imposing tariffs on each other’s goods. The US had previously announced a pause on “reciprocal” tariffs, but exempted China from this pause. The recent tariff hike to 125% marks a significant escalation of the trade tensions between the two nations.
The increased tariffs will likely have far-reaching implications for businesses and consumers in both countries. Companies will need to assess the impact of the tariffs on their operations and consider strategies to address the increased costs. The trade war may also lead to higher prices for consumers and reduced economic growth.
