China increases tariffs on US goods to 125%

China will increase duties on all US goods from 84% to 125% starting March 12 this year. This is stated in the announcement of the Commission on Customs Tariffs under the State Council of the People’s Republic of China.

“On April 10, the U.S. government announced that the “reciprocal tariff” rate on Chinese goods exported to the United States would be further increased to 125%. The US imposition of abnormally high tariffs on China seriously violates international trade rules and contradicts basic economic laws and common sense. This is a completely unilateral practice of bullying and coercion,” the statement said.

It is also noted that at the current level of tariffs, the market is unable to accept goods from the United States exported to China. Therefore, China will ignore if the United States continues to impose tariffs on Chinese imports.

According to Bloomberg, the tariff hike marked a sharp increase in trade tensions between the two countries. By 2025, the average import taxes levied by each side on the other were less than 20%, even after the first trade war during Trump’s previous term.

Now, the US and China exchange nearly $700 billion worth of goods annually, and if the situation is not de-escalated, Chinese and US consumers and companies will face higher prices across the board due to high tariffs, as supply chains will need to be changed.

As GMK Center reported earlier, on April 9, US President Donald Trump announced a complete pause for 90 days on all “reciprocal” duties for trading partners, except for China. For China, the world’s second-largest economy, duties will increase from 104% to 125%.

In 2025, imports are likely to increase due to the shutdown of Pokrovske Coal Group.