US-China Trade War: China Retaliates with 125% Tariff Hike on US Goods as Trade War with Trump Escalates

Beijing/Washington

US-China Trade War —The global trade landscape took a dramatic turn this Friday as China fired back at the United States by raising tariffs on American imports to a staggering 125%. The move is a direct response to President Donald Trump’s decision to increase duties on Chinese goods to 145%, intensifying the already volatile trade standoff between the world’s two largest economies.

In his first public statement regarding the ongoing tariff battle, Chinese President Xi Jinping remained defiant. “China is not afraid,” he declared, sending a strong message to Washington that Beijing is prepared to endure and respond to pressure.

The White House’s latest move singled out China, opting to pause “reciprocal” tariffs on dozens of other nations while doubling down on Beijing. Analysts say this marks a significant shift in US trade strategy—one that could fracture global supply chains and spark long-term economic instability.

China Slams US Tariff Policy, Files Complaint with WTO

China’s Finance Ministry condemned the US action, calling it “unilateral bullying and coercion.” In an official statement, the ministry said the US decision violates international trade norms, economic laws, and “basic common sense.”

Reinforcing its position on the world stage, China has filed a formal complaint with the World Trade Organization (WTO), challenging what it calls unlawful US tariff practices. “On April 10, the United States issued an Executive Order, increasing the so-called ‘reciprocal tariff’ on Chinese goods. China has taken this matter to the WTO,” the Chinese mission confirmed.

Markets React: Global Indices Tumble

The growing trade conflict sent shockwaves through financial markets. Asian indices tracked Wall Street’s losses, while in Europe, the STOXX 600 index slid over 1%, continuing a week marked by high volatility. The market reaction reflects investor anxiety over a prolonged trade war and its potential to derail global growth.

Despite the economic jitters, White House trade adviser John Bessent struck an optimistic tone, stating, “Striking bilateral deals with other countries will bring more certainty and reduce dependency on hostile trading partners.”

US Seeks Alternatives, Allies in Trade Strategy

As the US ramps up pressure on China, it is also looking to strengthen ties with other nations. The White House confirmed that formal trade talks with Vietnam are underway. Vietnam, a key Southeast Asian manufacturing hub, is reportedly tightening controls to prevent Chinese goods from using its territory to bypass US tariffs.

Meanwhile, Japan has entered the diplomatic arena. Prime Minister Shigeru Ishiba has established a special task force that aims to visit Washington next week to discuss trade terms and regional economic cooperation.

What’s Next in the US-China Trade War?

President Trump’s administration remains firm in its stance against what it sees as unfair trade practices by China. With tariffs on Chinese imports now totaling a 145% increase since he took office, Trump is signaling that the economic pressure campaign will continue.

However, the escalation raises urgent questions: How long can global markets withstand the pressure? Will US consumers and businesses bear the brunt of rising costs? And is there still room for negotiation, or are both nations locked in a trade war with no end in sight?

For now, one thing is clear: the US-China trade conflict is entering a new, more confrontational phase—with global consequences.