In a sharp escalation of the ongoing trade war between the world’s two largest economies, China announced on Friday that it will raise tariffs on US goods from 84% to a staggering 125%. This move comes just days after US President Donald Trump hiked tariffs on Chinese imports to 145%, citing what he called a “lack of respect” from Beijing. China’s Finance Ministry criticized Washington’s approach, calling it a “numbers game with no practical economic significance,” and added that at such high tariff levels, there would be “no possibility of market acceptance” for American exports.
Beijing’s reaction underscores the rising tensions, as both nations appear unwilling to back down. A spokesperson from China’s Commerce Ministry blamed the United States for the “severe turbulence” affecting global markets and the multilateral trading system, warning that such unilateral actions are destabilizing the world economy. President Trump, meanwhile, temporarily paused tariffs on all countries except China, intensifying the perception that the trade standoff with Beijing is taking center stage in his global economic policy.
As the trade war deepens, diplomatic efforts seem to be shifting toward forming alliances. Chinese President Xi Jinping, during a meeting with Spanish Prime Minister Pedro Sanchez in Beijing, emphasized that “there are no winners in tariff wars.” Xi called on the European Union to work with China in opposing what he termed “unilateral bullying” by the US. Highlighting a potential new geopolitical alignment, Xi asserted that joint resistance would help protect not only the interests of China and Europe but also global economic justice and fairness.
