China unleashes massive 125% tariff retaliation on US

China announced Friday it would significantly increase tariffs on American imports, raising levies from 84 percent to a staggering 125 percent.

The announcement was made by the Customs Tariff Commission of China’s State Council, which issued a strongly worded statement warning of the consequences of continued US pressure.

“Even if the US continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of world economy,” the commission said, according to a CNBC translation.

Beijing also declared that there is now virtually "no market" for American goods in China under the current tariff rates, adding, “If the U.S. government continues to increase tariffs on China, Beijing will ignore.”

On the US' side, the Trump administration confirmed that total tariffs on Chinese imports have reached a cumulative 145 percent. Despite these historic levels, there is little sign that either side is ready to return to the negotiating table.

Treasury Secretary Scott Bessent expressed frustration earlier this week, telling Fox Business, “It’s unfortunate that the Chinese actually don’t want to come and negotiate, because they are the worst offenders in the international trading system.”

Bessent added, “They have the most imbalanced economy in the history of the modern world, and I can tell you that this escalation is a loser for them.”

The economic impact of the deepening trade dispute is already being felt. Goldman Sachs revised its forecast for China’s 2025 GDP growth down to 4 percent, citing both US tariffs and broader global economic slowdowns. Analysts from the firm estimate that between 10 million and 20 million Chinese workers are employed in industries tied to US exports.

China, for its part, has vowed to hold its ground. “It will continue to resolutely counter-attack and fight to the end,” Friday’s statement said, affirming Beijing’s stance that it will not back down in the face of what it perceives as US aggression.