China has sharply escalated its trade confrontation with the United States by raising tariffs on American goods from 84% to 125%, just hours after President Donald Trump announced a fresh round of tariff hikes on Chinese imports, taking them up to a massive 145%. Despite this tit-for-tat move, Beijing has declared it will not retaliate any further, even if Washington continues to raise duties.
In a strongly worded statement, China’s Ministry of Finance condemned the U.S. tariffs as:
“a serious violation of international and economic trade rules, basic economic laws, and common sense… completely unilateral bullying and coercion.”
While raising its own tariffs, China stressed that its response stops here, and that further provocation from the U.S. would be met with strategic patience rather than escalation. The ministry stated:
“If the US continues to impose additional tariffs on Chinese goods exported to the US, China will ignore it.”
This move signals a significant shift in Beijing’s strategy—pushing back firmly but avoiding further escalation, possibly to preserve its global image and economic partnerships.
Trump’s tariff hikes are part of a targeted pressure campaign on China, as other countries were exempted from this steep increase under a 90-day pause, which explicitly excludes China. The White House appears intent on isolating China economically while easing tensions with other trade partners.
In his first public comments following Trump’s announcement, Chinese President Xi Jinping appealed to the European Union for support, urging a united front against what he described as:
“unilateral bullying practices” by the United States.
Xi’s remarks were clearly aimed at forming a broader coalition to counterbalance U.S. dominance in global trade, potentially opening the door to closer China-EU economic cooperation.
China has also taken additional retaliatory steps, including:
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Filing a formal complaint with the World Trade Organization (WTO), accusing the U.S. of actions that threaten the global trade order.
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Adding 12 U.S. companies to its export control list, restricting their access to Chinese markets and technologies.
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Placing six U.S. firms on its “unreliable entities list”, tightening oversight and possibly cutting off further cooperation.
This new phase in the U.S.-China trade war reflects escalating tensions but a possible ceiling on retaliation, as China attempts to manage the crisis without derailing its broader economic stability or diplomatic standing. Whether the U.S. follows through with further hikes—or whether domestic and international pressure tempers Trump’s next steps—remains to be seen.
