China Raises US Tariffs to 125% in Latest Escalation of Trade War

KEY TAKEAWAYS

• Global stocks are volatile after China hiked its retaliatory tariffs on U.S. imports to 125%, with investors bracing for an escalating trade war.
• Beijing raised its levy on U.S. imports from 84% on Friday, two days after President Donald Trump said China would be excluded from his 90-day pause on tariffs. 
• US stock futures are edging higher after whipsawing between gains and losses, while the dollar is plunging against major currencies.

Global stocks are volatile after China hiked its retaliatory tariffs on U.S. imports to 125%, with investors bracing for an escalating trade war.

Beijing raised its levy on U.S. imports from 84% on Friday, two days after President Donald Trump said China would be excluded from his 90-day pause on tariffs. A 10% base rate remains in effect for all countries, while China now faces an overall 145% levy.

"At the current tariff level, there is no market acceptance for US goods exported to China," China's State Council Tariff Commission said. "If the US continues to impose tariffs on Chinese goods exported to the US, China will ignore it."

"Even if the U.S. continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of world economy," the commission added.

U.S. stock futures are edging higher, having whipsawed between gains and losses after indexes sank Thursday. Dow Jones Industrial Average, S&P 500, and Nasdaq futures are all up less than 1%. The Stoxx Europe 600 index is edging lower. Asian shares closed before China's latest move, with Japan's Nikkei ending down 3% and Hong Kong's Hang Seng up 1.1%. 

Meanwhile, the dollar is plunging against most major currencies and the 10-year Treasury yield is down below 4.40%.

UPDATE—April 11, 2025: This article has been updated to include an additional quote.

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