Noor Trends News, Technical Analysis, Educational Tools and Recommendations
China announced on Friday that it will raise tariffs on U.S. imports to 125%, intensifying a rapidly escalating trade conflict with the United States. The new levy, up from the 84% rate announced just two days earlier, is set to take effect on Saturday, according to a statement from China’s Finance Ministry.
The move is a direct retaliation against President Donald Trump’s tariff increases, which the White House said now total 145% on Chinese goods, following a series of hikes since the beginning of his second term.
Beijing Blasts U.S. Tariffs as “Bullying and Coercion”
In a sharply worded statement quoted by Reuters, China’s Finance Ministry accused the U.S. of violating international norms:
“The U.S. imposition of abnormally high tariffs on China seriously violates international and economic trade rules, basic economic laws and common sense, and is completely unilateral bullying and coercion.”
The remarks mark one of Beijing’s strongest official condemnations of Washington’s trade stance to date, further reducing the likelihood of an imminent diplomatic resolution.
Breakdown of Tariff Escalation
- Trump had earlier announced a new 125% tariff in response to Beijing’s 84% retaliatory duties.
- The White House later clarified that the 125% figure is in addition to an existing 20% tariff imposed earlier in his term, related to China’s alleged role in the fentanyl supply chain.
- That brings the effective tariff rate on some Chinese goods to a staggering 145%.
Market Reaction: Cautious and Volatile
U.S. stock futures dipped below the flatline on Friday, reversing earlier modest gains as traders digested the latest developments. The news has added fresh volatility to a week already dominated by fears of a global economic slowdown, driven by rising trade barriers and policy uncertainty.
Markets are increasingly concerned that a prolonged trade war could:
- Disrupt global supply chains
- Weigh on consumer and industrial demand
- Further weaken global GDP growth
Outlook: No Sign of De-escalation
The latest round of tariff hikes reinforces that both sides remain entrenched, with little political incentive to step back. While Trump has hinted at potential negotiations, Beijing has shown no indication it intends to soften its stance.
With tariffs at their highest levels in decades, the risk of long-term economic damage—and persistent financial market volatility—is rising.
Investors will now turn their attention to:
- Upcoming economic data releases
- Any potential Fed commentary on trade risks
- Whether either side signals a shift in tone ahead of global trade summits or G20 talks
For now, the trade war appears to be entering its most dangerous phase yet.
