China has intensified trade tensions with the United States by raising tariffs on U.S. goods to 125%, a significant increase from the previously imposed 84%.
This decision, which will take effect on Saturday, comes in response to the U.S.’s heightened tariffs, currently reaching an effective rate of 145%. The move signals an escalating trade war between the world’s two largest economies.
Beijing’s State Council Tariff Commission described the U.S.’s tariff measures as a violation of international trade rules and economic logic. Financial markets reacted with uncertainty, showcasing mixed results as U.S. stock index futures fluctuated following the announcement.
The trade dispute adds to China’s economic challenges, including a struggling property market, sluggish domestic demand, and mounting deflationary pressures. Experts worry that this tit-for-tat approach could lead to prolonged instability in global markets.
