China / Trade War: Beijing Responds to Washington with a 125% Tariff
The trade war between the United States and China has reached a new level. In response to Washington’s decision to impose a 145% tariff on Chinese products, Beijing retaliated on Friday, April 11, with its own 125% tariff on American goods. This tax increase, up from the previous rate of 84%, marks a new escalation in the economic tensions between the two powers.
China’s Ministry of Finance, through its Tariff Commission, condemned the U.S. measures as being contrary to “economic laws” and “common sense”. Beijing called the American campaign a “farce” and stated that the new duties now make American products “unacceptable” in the Chinese market. As a result, China announced it would “ignore” any further tariff hikes decided by the U.S. administration.
Meanwhile, a Chinese state-run media outlet revealed that Beijing had officially filed a complaint with the World Trade Organization (WTO). This move aims to challenge what it considers arbitrary and unilateral actions by the White House. China’s Ministry of Commerce also accused Washington of being responsible for “severe shocks” to the global economy, affecting financial markets as well as multilateral trade systems.
Amid this tense atmosphere, Donald Trump surprised markets on Wednesday by announcing a 90-day suspension of the tariffs for most countries—China being a notable exception, as he accused it of showing disrespect toward the United States.
This ongoing uncertainty continues to shake global stock markets. On Friday, Tokyo’s stock exchange dropped 3.37%, Seoul lost 0.64%, while Chinese markets, after an initial decline, started to rebound. The Shanghai index notably rose by 0.75%. The economic confrontation between China and the U.S. appears far from being resolved.
