China will hike tariffs on American goods to 125% starting April 12, marking a sharp escalation in the ongoing trade dispute with the United States. The move comes just hours after U.S. President Donald Trump ratcheted up tariffs on Chinese imports to a cumulative 145%—a significant increase that includes a fresh 125% rate atop a prior 20% duty introduced earlier this year.
Trump’s administration confirmed on Thursday that the new rate targets a broad range of Chinese goods, citing concerns over Beijing’s alleged role in the fentanyl supply chain. While the U.S. has paused fresh tariffs for 90 days for over 70 countries willing to negotiate, China has been excluded from this temporary reprieve, facing heightened pressure instead.
In a veiled response, Chinese President Xi Jinping reiterated on Friday that “there are no winners in a tariff war.” Speaking alongside Spanish Prime Minister Pedro Sanchez, Xi stressed that confrontation and global isolation serve no one’s interests. “China has always relied on self-reliance and hard work, not handouts, and we will not back down in the face of unjust suppression,” Xi asserted, according to state media outlet Xinhua.
The tit-for-tat tariff escalation has once again rattled global markets and increased uncertainty for businesses, with both nations digging in ahead of what could be another prolonged phase of the trade war.
