China Responds to U.S. Tariff Increase by Hiking Rates to 125%

China will increase tariffs on U.S. imports to 125% starting April 12, 2025. The move follows the U.S. decision to raise tariffs on Chinese goods

China will increase tariffs on U.S. imports to 125% starting April 12, 2025, the State Council Tariff Commission announced on Thursday.

The new rate will apply to many types of goods and follows a recent decision by the U.S. government to raise tariffs on Chinese exports to the same level. Beijing has protested the move, calling it a violation of trade rules and economic norms.

The commission said today that the U.S. products will not be viable in the Chinese market at the current tariff level.

“Given that there is no market acceptance for U.S. goods at this level, China will ignore further moves by the United States,” its statement added.

The measures are being taken in accordance with China’s Tariff Law, Customs Law, and Foreign Trade Law, as well as the relevant norms of international law, the commission said.

In addition to the tariff hike, all provisions announced in March will continue to apply, it added. These earlier measures covered lists of affected products and tariff schedules.

Earlier this month, the U.S. imposed a broad set of “reciprocal” tariffs. While many countries received a 90-day suspension of those tariffs, China was pointedly denied this delay.

In a social media post, President Trump accused China of showing “a lack of respect” for global markets and announced an immediate hike to 125%.

The move prompted a response from German Finance Minister Joerg Kukies, who said that the EU may consider its response if talks with the U.S. failed.

Kukies urged the EU to take a nuanced approach, highlighting Europe’s trade surplus in goods and deficit in services. He also called for strengthening Europe’s digital services to reduce reliance on U.S. providers.