China Hits Back, Raises Tariffs on US Goods to 125%

Tension continues to escalate between China and the United States, with China announcing a significant hike in tariffs on US goods, raising the rate from 84% to 125%. This retaliatory move, effective April 12, 2025, was announced by the State Council Tariff Commission and comes in direct response to the United States’ latest decision to increase tariffs on Chinese imports to the same 125% level. 

The US tariff hike follows China’s previous retaliatory measure and has drawn sharp criticism from Beijing. Describing the US action as “unilateral bullying and coercion,” Chinese officials argue that Washington’s measures violate international trade norms, basic economic principles, and common sense. According to the announcement, the Chinese government’s decision is grounded in its domestic laws and the principles of international law, underlining its legal justification for countermeasures.

“No Winners in a Trade War”: China

Chinese officials continue to underscore that China does not seek a trade war but is prepared to defend its economic sovereignty. “Tariff and trade wars have no winners,” states Foreign Ministry spokesperson Lin Jian. He warns that “China does not want to fight these wars but is not scared of them.” Jian emphasizes that China’s countermeasures aim to protect not only its own interests but also global trade rules and the broader international economic order.

Lin accuses the United States of “maximum pressure” tactics and “bullying behavior,” asserting that the use of tariffs as economic weapons damages international fairness and disrupts global economic stability. He adds that the United States has positioned itself “against the rest of the world,” and warns that if Washington persists, China will match every move with “resolute and strong measures.”

China and the European Union Present a United Front

Amid intensifying trade tensions, Beijing has found common ground with the European Union. Following a virtual meeting between China’s Commerce Minister Wang Wentao and European Commissioner Maros Sefcovic, both parties reaffirmed their commitment to the multilateral trading system anchored by the World Trade Organization (WTO).

Wang criticized the US tariffs as violations of WTO rules and expressed hope for enhanced cooperation with the EU in defending trade liberalization and a rules-based system. Sefcovic agreed, emphasizing that the European Union aims to work with WTO members, including China, to safeguard international trade.

The two sides also agreed to initiate consultations on market access issues and begin negotiations related to electric vehicle pricing and investment cooperation in the automotive sector. Additionally, they pledged to revive their trade remedy dialogue mechanism and collaborate on managing trade diversions and frictions.

Officials in Beijing have made it clear that they are open to dialogue, but only on the basis of “equality, respect, and mutual benefit.” Repeated warnings from Chinese ministries and spokespeople stress that if the United States continues down this path of economic confrontation, China will respond “to the end.”