China raises tariffs on US goods to 125% as it slams Trump
China will raise its tariffs against the U.S. to 125% from Saturday in the latest escalation in the burgeoning trade war, the finance ministry announced today. The new duties are a significant climb from the 84% announced on Wednesday, rising to meet the current U.S. tariffs imposed on Chinese goods.
Beijing said that the U.S. tariffs against China defy 'basic economic laws and common sense' after Donald Trump raised the rate on Chinese imports to 125%. A statement from the finance ministry said the imposition of 'abnormally high tariffs' amounted to 'unilateral bullying and coercion'. China's tariff hike only moves in line with Trump's latest raft of duties; Washington said yesterday the 125% announced Wednesday compounded an existing 20%.
Beijing did say that it would not respond to any more tariffs imposed by the U.S. The Trump administration has kept up the pressure on China despite climbing down from high, and varied, duties on dozens of other trading partners this week. While the EU now faces a baseline 10% rate pending 90 days for negotiations, leaders are still contemplating countermeasures should talks falter. Meeting with Spanish prime minister Pedro Sanchez on Friday, Xi Jinping urged cooperation with China to resist what he called 'unilateral bullying' from the U.S.
The three-month reprieve on hefty tariffs against 57 countries followed 'pressure from China', Beijing said in a show of goodwill. ' China and Europe should fulfil their international responsibilities... and jointly resist unilateral bullying practices,' Xi said on Friday, state news agency Xinhua reported. This, he stressed, would not only 'safeguard their own legitimate rights and interests, but also... safeguard international fairness and justice.' Sanchez, in turn, told a press conference following his meeting with Xi that tensions over trade should not impede cooperation between the European Union and China.
Spain buys about 45 billion euros ($49.1 billion) of goods every year from China, its fourth-largest trading partner, but sells around 7.4 billion euros' worth. 'Both Spain and Europe have a significant trade deficit with China that we must work to rectify,' he admitted. But, he said, 'we must not let trade tensions stand in the way of the potential growth of the relationship between China and Spain and between China and the EU'. Sanchez broke with the rest of the European Union on his last trip to China in September 2024, urging the bloc to reconsider plans to impose high tariffs on Chinese electric cars and calling for a 'fair trade order'.
China has found itself largely isolated in Trump's trade war, heavily penalised with tariffs as the new administration looks to encourage domestic manufacturing. There is no winner in a tariff war, and going against the world will only push the U.S. into self-isolation, President Xi said during his meeting with Sanchez. Beijing has vowed not to shy away from the fight should Trump insist upon his economic conflict with China. But Xi did say any further tariff hikes from the U.S. would be 'ignored' by China. '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,' he said, per CNBC.
China's mission to the World Trade Organization did, however, say today that it had filed an additional complaint to the trade body over U.S. tariffs. 'On 10 April, the United States issued the Executive Order, announcing a further increase of the so-called 'reciprocal tariff' on Chinese products. 'China filed a WTO complaint against United States' latest tariff measures,' the statement from China's mission said, citing a ministry of commerce spokesperson.
With tensions mounting, Elon Musk's Tesla suspended new orders on its Model S and Model X electric cars in China. Musk has tried to maintain cordial ties with Beijing. China represents a huge market for the car manufacturer and extracts precious metals used in its batteries.
In Shanxi, China, jewelry stores raised large red banners announcing that American customers would face 104 per cent 'service fees' in store. The Zhangji BBQ Beef Offal Restaurant in Wuhan lifted similar banners, local media reports. Meanwhile, China's e-commerce giant JD.com said on Friday it would launch a 200 billion yuan ($27.35 billion) fund to help the country's exporters sell their products domestically over the next year, as a U.S.-China trade war intensifies.
JD.com said in a statement that it would send its employees to Chinese companies involved in foreign trade, directly purchase their 'high-quality products' and set up a special area on its e-commerce platform to sell these products and direct traffic and marketing support to this area. Separately on Friday, supermarket chain Freshippo, owned by JD.com rival Alibaba and known as Hema in Chinese, said it had opened a fast-track path for export companies to explore the domestic market.
The support programmes for Chinese exporters could help them re-coup some of their losses stemming from reduced sales overseas by quickly starting or increasing domestic sales, although they will face intense competition in a slowing economy. Like JD.com, Freshippo will set up a special zone on its platform where only products from these companies will be sold. It said it will also make it easier for exporters to get on its platform by simplifying registration procedures and would allow these exporters to make use of the company's warehouse network.
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