China retaliates with 125% tariff on US imports, up from 84%, as trade war escalates

In response to U.S. president Donald Trump's 125 per cent tariff on Chinese imports, China retaliated by slapping a 125 per cent tariff on U.S. imports.

According to a statement by the Chinese Ministry of Finance, China will increase the tariff on U.S. imports from 84 to 125 per cent.

"At this level, it is no longer possible for U.S. imports to be sold in the Chinese market," it added.

Should the U.S. continue to increase the tariff on Chinese imports, China said it would not respond.

"The U.S. government has implemented an absurdly high tariff against China, which severely violates the basic rules and common sense in economics, and constitutes a unilateral act of bullying and coercion," said the finance ministry.

This comes after Trump's 125 per cent tariff took effect on Apr. 10, bringing the cumulative tariff on Chinese imports to 145 per cent.

A previous 20 per cent was added earlier this year over China's alleged role in the fentanyl supply chain.

Prior to this, Trump announced a complete 90-day pause on all the "reciprocal" tariffs that went into effect at midnight on Apr. 9, with the exception of China.

The two countries have rallied repeatedly over the past few days, repeatedly increasing tariff rates in a growing trade war that has left the stock market in disarray.

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Top photo via China Daily