Trade War Escalates: China Ramps Up Tariffs on US Goods

Tensions Soar as Tariffs Hit 125% in Ongoing US-China Trade Dispute, Impacting Global Markets

The escalating trade war between the United States and China intensified yesterday as China announced a hike in tariffs on US goods, increasing them from 84 percent to a substantial 125 percent. This latest move has sent ripples through global markets, raising concerns about a potential economic slowdown.

While US President Donald Trump temporarily paused import taxes for other nations, he has continued to increase tariffs on Chinese imports, bringing the total to 145 percent.

China has vehemently condemned these actions, labeling them as "economic bullying" and vowing to implement countermeasures. The newly announced tariffs are effective immediately.

A spokesperson from China’s Ministry of Finance, in a statement announcing the new tariffs, remarked that Washington’s persistent tariff increases "will become a joke in the history of the world economy." The statement further emphasized China's resolve: “However, if the US insists on continuing to substantially infringe on China’s interests, China will resolutely counter and fight to the end.”

The Ministry of Commerce in China has also stated that it will file another lawsuit with the World Trade Organization (WTO) challenging the US tariffs.

The Chinese tariffs specifically target key US imports such as soybeans, aircraft and their components, and pharmaceuticals, all of which are significant imports for China.

Adding to the tensions, Beijing previously suspended imports of sorghum, poultry, and bonemeal from some US companies. Furthermore, more export controls were applied to rare earth minerals, which are crucial components in various technologies.

In the US, top imports from China, including electronics like computers and cellphones, industrial equipment, and toys, are now subject to a 145 percent tariff, likely resulting in increased prices for consumers and businesses.

Earlier this week, Donald Trump announced the 125 percent tariff on China; however, it does not include a separate 20 percent tariff due to the role in fentanyl production.