China Raises Tariffs, Escalates Trade War with US

Why in the News ?

China increased tariffs on US goods from 84% to 125% in retaliation to the US hiking tariffs to 145%. Beijing accused the US of violating international trade norms and engaging in unilateral economic coercion, worsening global trade tensions.

China Raises Tariffs, Escalates Trade War with US

What Happened?

  • China’s finance ministry has announced a sharp increase in tariffs on US goods — from 84% to 125%.
  • This move comes as a counter to the US raising tariffs on Chinese products to nearly 145%.
  • The decision marks a major escalation in US-China trade tensions.

China’s Justification and Accusations

  • Beijing accused the US of violating international economic and trade rules.
  • It labelled the US tariff hike as “unilateral bullying” and “coercion.”
  • Chinese officials argue that these actions harm fair trade practices and mutual interests.
  • The statement condemned the US’s excessive use of tariffs as politically motivated.

Impact and Global Outlook

  • Global investors closely monitored China’s response after President Trump’s tariff decision.
  • Analysts warn this tit-for-tat tariff war could lead to market volatility and supply chain disruptions.
  • Concerns are rising over increased consumer prices and strained diplomatic ties.
  • The move shows a hardening of China’s stance, possibly affecting trade negotiations.
  • Economists warn of a global economic slowdown due to continued escalation.