In a fresh escalation of trade tensions, China on Friday raised tariffs on US goods to as high as 125 percent, shortly after US President Donald Trump imposed a staggering 145 percent duty on Chinese imports. However, Beijing tempered its response by stating it would not pursue additional retaliation beyond this round, signaling a cautious approach in the growing tariff war.
The Chinese Finance Ministry sharply criticised Washington’s latest move, calling it “unilateral bullying and coercion” that violated global trade norms and economic logic.
“The US imposition of abnormally high tariffs on China seriously violates international and economic trade rules, basic economic laws and common sense,” the ministry said in a statement quoted by Reuters. “If the US continues to impose additional tariffs on Chinese goods… China will ignore it.”
Xi Jinping Urges EU to Join Forces Against “Unilateral Bullying”
China’s retaliatory tariff hike comes as President Trump excluded Beijing from a 90-day tariff relief plan extended to other nations. Instead, the White House has turned up the heat on the world’s second-largest economy, triggering a new round of geopolitical unease.
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Trump’s tariff barrage, analysts say, is aimed at forcing China into making deeper trade concessions ahead of an expected bilateral dialogue. But in his first public reaction, Chinese President Xi Jinping appeared unfazed, calling for unity with Europe to resist Washington’s tactics.
“China and Europe should fulfil their international responsibilities… and jointly resist unilateral bullying practices,” state-run Xinhua quoted Xi as saying.
China had already raised tariffs from 34 percent to 84 percent earlier this week, before announcing the jump to 125 percent on Friday. Simultaneously, it launched a fresh complaint with the World Trade Organization (WTO), alleging that US tariffs pose a threat to global trade stability.
Beijing Targets US Companies, Warns of Further Legal Action
In a parallel move, China expanded its export control list by adding 12 US companies and named six more on its “unreliable entities list”—a blacklist designed to punish firms seen as complicit in hostile acts against Chinese interests.
Still, Beijing’s measured tone suggests it is trying to avoid a full-blown trade war, especially as economic indicators hint at domestic vulnerabilities. Despite the provocations, the Chinese government has chosen not to escalate further, a move likely aimed at maintaining global investor confidence.
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For global markets and supply chains already reeling from inflation and geopolitical uncertainties, the developments underscore the fragility of global trade equilibrium. While the tariff skirmish may pause here, both countries appear to be preparing for a long-term strategic decoupling.
