U.S. and Chinese flags and a “125% tariffs” label are seen in this illustration taken April 10, 2025.
Dado Ruvic | Reuters
China has retaliated against the U.S. President Donald Trump’s reciprocal tariffs by raising its levies on U.S. goods to 125% from 84%, Customs Tariff Commission of the State Council said in a statement on Friday.
“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.
“With tariff rates at the current level, there is no longer a market for U.S. goods imported into China,” the statement said, adding that “if the U.S. government continues to increase tariffs on Chinese goods exported to the U.S., China will ignore.”
Trump administration confirmed to CNBC on Thursday that the U.S. tariff rate on Chinese imports now effectively totals 145%.
Hopes for a U.S.-China deal to resolve trade tensions have faded fast as Beijing has been hitting back in the last week with tit-for-tat duties on American goods and wide-ranging restrictions on U.S. businesses.
Goldman Sachs on Thursday cut its China GDP forecast to 4% given the drag from U.S. trade tensions and slower global growth.
While Chinese exports to the U.S. only account for about 3 percentage points of China’s total GDP, there’s still a significant impact on employment, Goldman Sachs analysts said. They estimate around 10 million to 20 million workers in China are involved with U.S.-bound export businesses.
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