Skybridge Capital’s founder warns China is preparing fierce economic retaliation as the U.S. slaps 125% tariffs on Chinese goods, signaling currency shocks, massive stimulus, and financial warfare.

ucci Outlines 5-Point Forecast on China's Next Moves Amid Rising Trade Tensions

The U.S. is piling up tariffs on Chinese goods, reaching 125% in a direct response to China’s 34% tariff on U.S. goods, which the Trump administration described as a “big mistake.”

On Wednesday, China retaliated by increasing tariffs on U.S. goods to 84% following new “reciprocal” duties imposed by Trump, further escalating trade tensions.

In response, Trump announced via Truth Social an immediate increase in tariffs on Chinese goods to 125%, citing continued trade abuses and market barriers by Beijing.

Trump also confirmed a 90-day pause and a reduced 10% reciprocal tariff for over 75 countries currently in trade discussions with U.S. officials, mentioning their lack of retaliation as a reason for the temporary relief.

U.S. Treasury Secretary Scott Bessent recently highlighted the unbalanced trade relationship, mentioning that American exports to China amounted to $143.5 billion, while imports from China reached $438.9 billion.

Beijing responded resolutely, stating their intention to “fight till the end” and branding the U.S. move as coercive and unreasonable.