China has raised tariffs on American imports to a steep 125%, intensifying an already heated trade war with the United States under President Donald Trump’s administration. The move follows Washington’s latest tariff hike on Chinese goods, now totaling 145%.
Announced by China’s Customs Tariff Commission on Friday, the decision was a direct response to what it called “unreasonable” US policies. The commission argued that US products had become uncompetitive in the Chinese market, and warned that Washington’s tariff strategy could soon be remembered as a “joke in the history of world economy.”
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The Trump administration defended its stance, with US Treasury Secretary Scott Bessent labeling China as “the worst offender” in global trade. Trump himself doubled down by announcing an increase in tariffs on Chinese imports from 104% to 125%, while temporarily easing duties on other nations to facilitate negotiations.
Meanwhile, China’s economy is feeling the pressure. Goldman Sachs revised its 2025 GDP forecast for the country to 4%, citing weaker global demand and mounting trade barriers. The bank warned that up to 20 million Chinese jobs could be at risk due to reduced exports to the US.
The escalating tit-for-tat tariffs mark a new peak in the ongoing trade standoff, with both countries showing little sign of backing down.
