Xi Says ‘China Is Not Afraid,’ Hikes Tariffs on U.S. Goods to 125%/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ China will raise tariffs on U.S. goods from 84% to 125% starting Saturday, escalating tensions in the ongoing trade war. The move follows President Trump’s tariff hike on Chinese imports, now totaling 145%. Both nations are digging in as fears of global economic fallout grow.
China Raises Tariffs on U.S. Goods to 125%: Quick Looks
- Beijing raises tariffs on U.S. goods from 84% to 125% starting Saturday.
- The move retaliates against Trump’s 145% tariff hike on Chinese imports.
- Chinese officials denounced the tariffs as “economic bullying.”
- China will file a new WTO lawsuit challenging U.S. trade policy.
- U.S. imports impacted include soybeans, aircraft, pharmaceuticals.
- Rare earth exports restricted, and other U.S. goods like sorghum, poultry face bans.
- Trump’s strategy aims to reshore U.S. manufacturing jobs amid recession fears.
- Markets remain volatile, and global slowdown warnings are rising.
- WTO head: Trade war risks severe global economic damage.
- China’s Finance Ministry vows to “fight to the end” if provoked further.
Xi Says ‘China Is Not Afraid,’ Hikes Tariffs on U.S. Goods to 125%
Deep Look
China escalated its trade battle with the United States Friday, announcing a steep increase in tariffs on American goods—from 84% to 125%—in retaliation for President Donald Trump’s 145% tariff package targeting Chinese imports.
The new Chinese tariffs, set to take effect Saturday, are the latest blow in a tit-for-tat trade war that is shaking global markets, unsettling investors, and raising fears of a potential global economic downturn.
In a strongly worded statement, a spokesperson for China’s Finance Ministry criticized the Trump administration’s approach as “economic bullying” and accused Washington of undermining the world economy.
“Washington’s repeated jacking up of tariffs will become a joke in the history of the world economy,” the ministry said. “If the U.S. insists on continuing to substantially infringe on China’s interests, China will resolutely counter and fight to the end.”
China’s Commerce Ministry also announced it would file a fresh complaint with the World Trade Organization (WTO), challenging the legality of the new U.S. tariffs.
The Trump administration warned China against retaliatory tariffs — but it didn’t work
In private discussions hours before China announced new retaliatory tariffs, the Trump administration warned Chinese officials against such a move, according to a source familiar with the discussions.
The Chinese were also told — once again — that Chinese President Xi Jinping should request a call with US President Donald Trump.
Instead, US officials woke up to news of increased Chinese tariffs and no request for a leader level call. Xi also made comments that only dug him in further.
“For over 70 years, China’s development has relied on self-reliance and hard work — never on handouts from others, and it is not afraid of any unjust suppression,” Xi said according to state broadcaster CCTV during his meeting with the Spanish prime minister.
Despite Trump claiming in recent days that China wants a deal, they just don’t know “how to go about it,” China’s actions on Friday indicated no movement toward developing an off-ramp to the deepening trade war.
While the Commerce Ministry spokesperson said that the tit-for-tat tariffs have become a numbers game, they added, “China will resolutely take countermeasures and fight to the end” if the US continues “harming China’s interests.”
The US National Security Council did not immediately respond to a request for comment.
Escalating Economic Risks
The trade war has intensified despite earlier hopes for diplomatic cooling. This week, President Trump paused tariff hikes for most nations, but specifically increased pressure on China, citing Beijing’s trade practices and its role in fentanyl production.
Trump initially said tariffs on China would be raised to 125%, but the total rate climbed to 145% after factoring in a pre-existing 20% fentanyl-related duty, according to the White House.
The WTO’s Director-General Ngozi Okonjo-Iweala warned earlier this week that the U.S.-China tariff escalation “could severely damage the global economic outlook,” noting the dominant roles both countries play in international trade.
What the Tariffs Target
Beijing’s updated tariff list will hit a broad range of American exports, including:
- Soybeans
- Aircraft and aircraft parts
- Pharmaceuticals
- Agricultural goods like sorghum and poultry
- Bonemeal products
Additionally, China is tightening export controls on rare earth minerals, critical to manufacturing technology like batteries, smartphones, and renewable energy components—putting further pressure on U.S. industries dependent on these materials.
Last week, China suspended imports of certain agricultural goods from American companies and announced additional measures that could strain global supply chains.
Impact on U.S. Consumers and Businesses
The United States’ top imports from China—such as computers, smartphones, industrial components, and toys—are now all subject to a 145% tariff rate. This means consumers and businesses will likely face price increases on everyday electronics, appliances, and manufactured goods.
The Trump administration argues that these tariffs are a necessary short-term pain to restore domestic manufacturing and bring jobs back to the U.S. However, experts warn the benefits may take years to materialize, if they do at all.
Economists also caution that prolonged tariffs could stifle U.S. exports, disrupt supply chains, and lead to job losses in industries that depend on global markets.
Political Gamble Amid Economic Uncertainty
The White House hopes to score political points by portraying the tough stance as a pro-worker, pro-manufacturing initiative. Yet with stock markets fluctuating, consumer prices rising, and investor confidence rattled, the strategy is a high-stakes gamble.
Trump’s trade team insists the tariffs will bring “unfair” trade practices to heel, but China appears equally entrenched, signaling no intention of backing down.
In their latest message, Chinese officials warned that any further escalation by the U.S. would be met with an “even more forceful” response.
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