China’s finance ministry announced on Friday that it has raised tariffs on US goods from 84% to 125%. This decision comes in response to US President Donald Trump’s move to increase tariffs on Chinese imports to 125%. These tariffs are part of an ongoing trade conflict between the two countries.
China has strongly criticised the US action. According to a statement quoted by Reuters, the Chinese finance ministry said, “The U.S. imposition of abnormally high tariffs on China seriously violates international and economic trade rules, basic economic laws and common sense and is completely unilateral bullying and coercion.”
China also warned the US of further actions if the pressure continues. “If the US insists on continuing to infringe upon China’s interests in a substantive way, China will resolutely take countermeasures and fight to the end,” the ministry added. In another sharp remark, the ministry said, “If the US continues to impose additional tariffs on Chinese goods exported to the US, China will ignore it.”
China seeks support from the EU
In a separate statement, Chinese President Xi Jinping called for support from the European Union to stand against the US’s actions. Speaking after the US announced new tariffs, he said, “China and Europe should fulfil their international responsibilities… and jointly resist unilateral bullying practices,” as quoted by AFP.
Trump’s total tariffs on Chinese goods now amount to 145%. This includes a new 125% tariff and an additional 20% tariff related to China’s role in fentanyl production.
Markets react to the conflict
The trade war has affected global markets. On Wednesday, after Trump’s announcement, Chinese authorities promised to “fight to the end” but also showed a willingness to talk. To support the economy, state-backed funds in China started buying stocks and ETFs (exchange-traded funds).
Even with some support, global investors are becoming cautious. According to Bloomberg, three major US-listed funds that track Chinese stocks lost almost $1 billion in a single day due to heavy selling.
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