China raises tariffs on US goods to 125%

In a dramatic escalation of trade tensions, China announced Friday, April 11, that it would raise tariffs on American goods to 125%, declaring that any further levies by Washington would be ignored as economically meaningless.

The move comes as global markets reel from a week of volatile trading driven by tit-for-tat economic measures between the world’s two largest economies.

Beijing accused President Donald Trump of triggering "turbulence in the market" and dismissed his aggressive trade tactics as a "numbers game" with no real economic logic.

“The United States’ imposition of round upon round of abnormally high tariffs on China has become a numbers game with no practical significance in economics,” said a spokesperson for China’s Ministry of Commerce.

“If the U.S. continues to play the tariff numbers game, China will ignore it.” Trump recently imposed new tariffs on Chinese imports, raising the total to a staggering 145%, although he paused some additional measures for 90 days in a partial climbdown amid market backlash.

China retaliates

In response, China raised its own levies to 125%, effective Saturday, and said it would file a formal complaint with the World Trade Organisation.

The Chinese Finance Ministry stated plainly that "at the current tariff level, there is no possibility of market acceptance for U.S. goods exported to China."

Despite the financial fallout, Trump remained defiant, suggesting that the turmoil was temporary and that his strategy would ultimately benefit the U.S. economy.

“In the end, it’s going to be a beautiful thing,” he said, downplaying the steep declines in major markets and the uncertainty rippling through global supply chains.

EU announces counter-measures

His comments were met with scepticism from both international leaders and financial analysts. European Commission President Ursula von der Leyen warned that the EU was ready with a “wide range of countermeasures,” while French President Emmanuel Macron urged the bloc to remain firm in the face of U.S. pressure.

“Europe must continue to work on all the necessary counter-measures,” Macron posted on X (formerly Twitter).

Chinese President Xi Jinping called for closer cooperation with the EU to resist Washington's “unilateral bullying practices.”

“China and Europe should fulfill their international responsibilities… and jointly resist unilateral bullying,” Xi said during talks with Spanish Prime Minister Pedro Sanchez.

Global effect of tariff war

Global markets reflected the tension, with Tokyo dropping more than 4%, while Sydney, Seoul, and Singapore also saw significant losses.

Oil prices fell, gold surged past $3,200 an ounce, and investors fled U.S. Treasuries in favor of safer assets.

“The sugar high from Trump’s tariff pause is fading fast,” said Stephen Innes of SPI Asset Management. “Bottom line: the world’s two largest economies are in a full-blown trade war — and there are no winners.”

While Trump insists his hardline stance will ultimately usher in a “Golden Age,” critics say the tariff war is creating economic instability, alienating allies, and raising prices for U.S. consumers.

Yet, the president has warned that tariffs could return after the 90-day pause if no deal is reached. “If we can’t make the deal we want to make… then we’d go back to where we were,” he said.