China has sharply escalated its trade dispute with the United States by raising tariffs on American goods to as high as 125%, up from the previous rate of 84%. The move marks one of Beijing’s strongest retaliatory measures to date as tensions between the world’s two largest economies reach new highs.
The tariff increases come in direct response to continued U.S. trade restrictions, with Chinese exports now facing duties of up to 145% when entering American markets. The dramatic hike underscores the deepening rift in U.S.-China economic relations and raises the stakes for global supply chains and financial markets already rattled by volatility.
Chinese President Xi Jinping has seized the moment to build international alliances, calling on the European Union to align with China against what he labeled “unilateral bullying” by the United States. In a high-level meeting with Spanish Prime Minister Pedro Sánchez, Xi urged the EU to help uphold global trade norms and resist economic coercion.
“China and Europe must jointly safeguard fairness, justice, and their own legitimate interests in the global order,” Xi stated, highlighting the broader geopolitical dimension of the trade conflict.
This latest move from Beijing signals a hardening of positions on both sides, with global markets bracing for further disruption as trade tensions evolve into a more entrenched economic standoff.