China announced Friday that it will raise tariffs on U.S. goods to 125% starting Saturday. However, it also declared that it would ignore any additional levies imposed by President Donald Trump, arguing that it no longer makes economic sense for Chinese importers to buy American products.
After a week of intense market turbulence as the world’s two largest economies exchanged blows through escalating trade barriers, Beijing dismissed Trump’s latest manoeuvres as nothing more than a “joke” and a “numbers game.”
China accused the U.S. president of sowing global market chaos through sweeping tariffs and insisted that Washington should bear full responsibility for the ongoing instability.
Trump has used tariffs—many of them steep and broad-reaching—as leverage to push manufacturers to relocate to the U.S. and to compel other countries to lower trade barriers for American exports. But after financial markets were roiled this week, Trump softened his stance, pausing many of the tariffs for 90 days—except for those targeting China, which now total a staggering 145%.
In response, Beijing’s latest retaliatory move pushes its own tariffs to 125%.
Yet, China’s finance ministry signalled it would not respond to future U.S. measures. “At the current tariff level, there is no market acceptance for U.S. goods exported to China,” it stated. The commerce ministry added, “The United States’ repeated imposition of unusually high tariffs has become a numbers game with no economic meaning.”
“If the U.S. continues to play this numbers game, China will ignore it,” a spokesperson said.
China also announced plans to file a formal complaint with the World Trade Organization over the latest round of U.S. tariffs.
— ‘A Beautiful Thing’ —
Trump acknowledged that his tariff strategy has led to “transition costs and problems,” but dismissed concerns over global market turmoil.
“In the end, it’s going to be a beautiful thing,” he said.
He commended the European Union for not retaliating immediately, calling them “very smart.” “They were ready to announce retaliation, and then they heard about what we did concerning China,” he added.
However, EU Commission President Ursula von der Leyen told the Financial Times that Europe is prepared with a “wide range of countermeasures” should talks with the U.S. collapse. “For example, a levy on advertising revenues of digital services could be applied across the bloc,” she said.
French President Emmanuel Macron echoed the need for preparation. “With the European Commission, we must be strong. Europe must continue to work on all the necessary counter-measures,” he posted on X.
In a meeting with Spanish Prime Minister Pedro Sanchez, Chinese President Xi Jinping emphasised the importance of collaboration between China and the EU. “China and Europe should fulfil their international responsibilities and jointly resist unilateral bullying,” Xi said. This, he added, would help protect both their own interests and global fairness.
— ‘No Winners’ —
The escalating trade war shook markets again Friday. Tokyo dropped over four percent, erasing a surge from the previous day, while markets in Sydney, Seoul, Singapore, and Europe also declined.
Oil and the dollar weakened on fears of a global economic slowdown. Gold soared past $3,200 as investors abandoned traditionally safe U.S. Treasuries in response to Trump’s unpredictable moves.
“The sugar high from Trump’s tariff pause is fading fast,” said Stephen Innes of SPI Asset Management. “Bottom line: the world’s two largest economies are in a full-blown trade war—and there are no winners.”
— ‘Golden Age’ —
Critics say Trump’s policies are destabilising global supply chains, straining relationships with key allies, and raising prices for American consumers.
Yet Commerce Secretary Howard Lutnick remained optimistic, writing on social media Thursday, “The Golden Age is coming. We are committed to protecting our interests, engaging in global negotiations, and exploding our economy.”
Trump has warned that paused tariffs may return after the 90-day window. “If we can’t make the deal we want to make… then we’d go back to where we were,” he said.
Canadian Prime Minister Mark Carney welcomed the pause, calling it a “reprieve,” and said Ottawa would start fresh talks with Washington after the April 28 elections. Vietnam has agreed to begin trade discussions with the U.S., and Pakistan is also sending a delegation to Washington.
Meanwhile, as Beijing seeks allies, Xi is set to visit Vietnam, Malaysia, and Cambodia next week—where the growing trade tensions are expected to dominate discussions.
