China Strikes Back with 125% Tariffs Amid Escalating US-China Trade War

In a sharp escalation of the ongoing trade tensions, China has imposed a sweeping 125% tariff on a wide range of U.S. goods, retaliating against the United States’ recent decision to levy 145% tariffs on Chinese imports. The move marks a significant deepening of the US-China trade war, with analysts warning of serious consequences for global supply chains and international commerce.

Chinese President Xi Jinping issued a stern warning against unilateralism, calling for “global cooperation against bullying” and urging a shift toward mutual respect and dialogue. “China remains committed to win-win cooperation,” Xi stated, emphasizing that sustainable bilateral relations must be built on mutual trust and fairness.

The International Trade Centre’s Executive Director, Pamela Coke-Hamilton, raised alarm over the growing risks to global trade, forecasting an 80% decline in US-China trade if tensions continue unabated. “With 40% of traded goods classified as intermediate products, this standoff could send shockwaves through global supply chains, disrupting production and inflating costs worldwide,” she cautioned.

China’s Ministry of Commerce echoed the President’s stance, stating it remains open to negotiations, but only “on the basis of mutual respect.” Top Chinese diplomat Wang Yi condemned the United States for what he described as reckless behavior, adding, “History cannot go backwards. We must not repeat past mistakes.”

Economists and international bodies are now closely monitoring the situation, warning that further escalation could trigger broader economic instability, impact global investment flows, and slow post-pandemic recovery efforts across both developed and emerging markets.

As the world’s two largest economies dig in their heels, the international community is urging both sides to return to the table and seek peaceful resolution through diplomacy and cooperation.