China hits back at Trump’s tariffs, raising levies on US goods to 125%

China has announced a significant hike in tariffs on U.S. goods, increasing levies from 84% to 125%, in response to the reciprocal tariffs imposed by U.S. President Donald Trump.

The move was confirmed by the Customs Tariff Commission of the State Council on April 11, Caliber.Az reports, referencing US media.

"Even if the U.S. continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of world economy," the statement said, according to a CNBC translation.

The statement also added, "With tariff rates at the current level, there is no longer a market for U.S. goods imported into China," and warned that "if the U.S. government continues to increase tariffs on Chinese goods exported to the U.S., China will ignore."

Meanwhile, the Trump administration confirmed on April 10 that the U.S. tariff rate on Chinese imports now totals a substantial 145%.

Efforts to secure a trade deal between the U.S. and China have dwindled as tensions between the two nations escalate, with Beijing continuing to retaliate with reciprocal duties and broad restrictions on American businesses.

“It’s unfortunate that the Chinese actually don’t want to come and negotiate because they are the worst offenders in the international trading system,” U.S. Treasury Secretary Scott Bessent said after China raised its tariffs to 84%.

“They have the most imbalanced economy in the history of the modern world, and I can tell you that this escalation is a loser for them,” Bessent added.

In response to the ongoing trade dispute, Goldman Sachs downgraded its China GDP growth forecast to 4% on April 10, citing the economic drag from U.S. trade tensions and slower global growth.

Although Chinese exports to the U.S. account for just 3% of China’s total GDP, analysts from Goldman Sachs warned that the trade dispute still has a significant impact on employment, with an estimated 10 million to 20 million workers in China dependent on U.S.-bound export businesses.

By Aghakazim Guliyev