China announced on Friday an increase in the trade tariffs applied to the United States, from 84% to 125%.
The decision was made after the White House specified on Thursday that the correct tariff on Chinese goods imported into the US is actually 145%, thus escalating the stakes in the trade war with Beijing, as reported by Reuters.
Although China has announced that it will fight to the end against the aggressive trade policies of the Trump administration, Beijing stated on Friday that it will not respond to any further tariffs imposed by the US.
A spokesperson for the Beijing Ministry of Commerce stated that the tariffs imposed on Chinese exports to the US "have become a number game with no practical significance in the economy." "It will become a joke," he said, according to BBC.
"The US imposition of abnormally high tariffs on China seriously violates international and economic trade rules, basic economic laws, and common sense, and represents completely unilateral harassment and coercion," China's Ministry of Finance conveyed in a statement.
How We Got Here
The move announced by Beijing comes after President Trump announced on Wednesday a 90-day suspension of the so-called "reciprocity" tariffs imposed on dozens of countries, except for China, where tariffs are now rising to 125%.
Beijing responded with an increase of up to 84% in the tariff imposed on the US.
The White House specified on Thursday that the correct tariff for China is 145%, and China's response came today.
In addition to the 125% increase in tariffs imposed on China announced by Donald Trump on Wednesday, the 20% that were applied at the beginning of March in the fight against fentanyl trafficking, a powerful opioid causing a severe health crisis in the United States, are now added.
Rapid Market Reaction: Indices Drop
European markets are now predominantly in the red, and all three major stock indices have declined, as reported by the BBC.
- In the UK, the FTSE 100 fell by 0.47%.
- In France, the Cac 40 dropped by 0.92%.
- In Germany, the Dax decreased by 1.53%.
And the dollar has taken another hit, noted by The Guardian. The US currency index dropped by 1.2% to 99.50, marking the lowest level since April 2022.
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