China retaliates with tariff hike on US goods to 125%

China on Friday raised tariffs on a range of U.S. imports to 125%, retaliating against Washington’s decision to increase duties on Chinese goods to 145%, in a sharp escalation of trade tensions between the world’s two largest economies.

The move comes after U.S. President Donald Trump announced a steep hike in tariffs targeting Chinese products, while exempting most other trading partners from similar measures. The White House's latest action rekindles fears of a broader trade war with potential disruptions to global supply chains.

“The U.S. imposition of abnormally high tariffs on China seriously violates international trade rules, economic principles, and common sense,” China’s Finance Ministry said in a statement. “This is unilateral bullying and economic coercion.”

The tariff hike underscores a growing divide between Washington and Beijing as both sides harden their positions amid ongoing disputes over trade imbalances, technology transfers, and market access.

Market analysts warn that the tit-for-tat tariff battle could further destabilize global trade and dampen investor confidence at a time when the global economy is showing signs of fragility.

Neither side has indicated an immediate willingness to resume talks, raising concerns about a prolonged standoff.