China raises tariffs on US to 125% and says it won’t go higher

From 84% to 125% with effect from April 12.

China will raise tariffs on all US goods from 84% to 125% starting April 12, and said it plans to ignore any further increases announced by Washington from here because the Trump administration’s moves have become a “joke.”

The announcement by the Ministry of Finance on Friday came after the White House clarified that levies on Chinese goods rose to 145% this year. China said it no longer makes economic sense if the US imposes more tariffs.

ADVERTISEMENT CONTINUE READING BELOW

Read: Yuan falls versus everything as China’s tariff relief valve

“Given that American goods are no longer marketable in China under the current tariff rates, if the US further raises tariffs on Chinese exports, China will disregard such measures,” according to the statement.

In a separate statement, the Commerce Ministry said Washington’s repeated use of excessively high tariffs has become little more than a numbers game — economically meaningless and revealing its use of tariffs as a tool for bullying and coercion. “It’s become a joke,” the ministry said.

However, China warned that it will “resolutely counterattack and fight to the end” if the US continues to infringe on its rights and interests. It also said America should take full responsibility for the damage caused by the tariffs.

S&P 500 futures fell further after China’s announcement, and futures on the Hang Seng China Enterprises Index pared gains. The dollar also extended declines, pushing Bloomberg’s index of the US currency to a more than 1% decline on the day.

Read: Trump puts 90-day pause on higher tariffs, but hikes China rates

Tensions between Beijing and Washington have spiraled beyond tit-for-tat tariff exchanges in recent days to impact services and people’s ties. Authorities on Thursday moved to cut the number of American films allowed in Chinese theaters, suggesting broader retaliation beyond goods may be underway.

ADVERTISEMENT: CONTINUE READING BELOW

Chinese officials on Wednesday cautioned citizens against traveling to the US, and warned students of security risks related to studying in “certain US states” — a departure from Xi’s push to improve people exchanges.

The tariff hikes have marked a dramatic step-up in trade tensions between the two countries. Prior to 2025, the average import taxes charged by each side on the other were less than 20%, even after the first trade war in Trump’s previous term in office.

Read: China raises tariffs on US goods to 84% as trade war worsens

Almost $700 billion of goods are now exchanged between the US and China each year. If a deal to deescalate the situation isn’t reached, the steeper duties will result in both Chinese and American consumers and companies facing higher prices across the board as people work out how to rejig their supply chains to minimize their tariff bill.

Last year, the three biggest US imports from China were smartphones, laptops and lithium-ion batteries, while liquid petroleum gas, oil, soybeans, gas turbines, and machines to make semiconductors were some of the most valuable US exports to China.

© 2025 Bloomberg

Follow Moneyweb’s in-depth finance and business news on WhatsApp here.