Escalating Trade Tensions: China Strikes Back with 125% Tariff on American Imports

In a sharp escalation of the ongoing trade standoff, China has announced a 125% tariff on U.S. imports, set to take effect this Saturday. The move comes as a direct response to the United States raising its own duties on Chinese goods to the same level, marking another round in the accelerating tit-for-tat tariff battle between the world’s two largest economies. China’s Ministry of Finance stated that the new tariff rates could render American imports economically unviable in the Chinese market. However, officials also noted that no additional retaliatory steps are currently planned, unless the U.S. implements further tariff hikes. Meanwhile, the World Trade Organization (WTO) has issued a warning about the broader economic fallout. The escalating dispute could cause a major downturn in bilateral trade, with the WTO projecting an 80% decline in U.S.-China merchandise trade and a potential 7% drop in global GDP if the conflict continues unchecked.