The ongoing trade tensions between the U.S. and China just escalated—again. On Friday, China announced it will slap steep new tariffs of up to 125% on American-made goods, directly answering the latest round of tariff hikes introduced by President Trump earlier this week.
Trump had increased tariffs on Chinese imports to 125%, adding to an earlier 20% levy. He cited China’s role in the global fentanyl crisis as a key reason for the aggressive move. The products most likely to be hit hardest by China’s retaliation? Soybeans, pharmaceuticals, and airplanes—all major U.S. exports.
China wasn’t shy in voicing its discontent. The country’s Ministry of Finance accused the U.S. of outright “bullying and coercion,” calling the tariff hike a serious violation of international trade norms.
“The U.S.’s imposition of abnormally high tariffs on China seriously violates international economic and trade rules, basic economic laws, and common sense,” the ministry said in a strongly worded statement.
They also warned that U.S. goods may no longer be viable in the Chinese market at these tariff levels—and if America keeps raising tariffs, China won’t hesitate to push back further.
Responding to the news, U.S. trade representative Jamieson Greer downplayed the economic impact but acknowledged the move was “unfortunate.”
“There may be some adjustments, but I believe we’re still on a solid path,” he told Fox News. “I don’t expect a major spike in household expenses.”
Meanwhile, China has filed a formal complaint with the World Trade Organization, accusing the U.S. of undermining the global trading system and disregarding international norms.
On the diplomatic front, Chinese President Xi Jinping met with Spanish Prime Minister Pedro Sánchez to explore ways to deepen ties between China and the European Union—potentially signaling Beijing’s pivot toward building new alliances.
Trump, for his part, said he still believes a deal with China is possible—but reiterated his warning.
“At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” he posted on Truth Social.
