China Counters Trump with 125% Tariffs on US Goods

China has retaliated against President Trump’s recent trade actions by raising tariffs on US imports from 84% to 125%, effective Saturday. This escalation comes despite Trump implementing a 90-day pause on Liberation Day tariffs and the EU matching the US pause on retaliatory duties. The White House clarified that US tariffs on Chinese imports now stand at a minimum of 145%, higher than the 125% previously stated by Trump.

The trade war has negatively impacted US stock markets and investor confidence. However, Beijing has indicated it won’t implement further tariff increases even if Washington continues its escalations. Trump administration officials, including Treasury Secretary Scott Bessent, have attempted to reassure investors that the situation with China will “work out” and that the administration is working toward new trade deals during the pause period.