April 11, 2025 — Beijing. The U.S.–China trade war entered a new and dangerous phase as China announced a sweeping increase in tariffs on all U.S. goods, raising the rate from 84% to 125%. The move is a direct response to the Biden administration’s confirmation that U.S. tariffs on Chinese exports have now reached 145% this year.

China’s Ministry of Finance said the new duties will take effect on April 12, marking the most aggressive retaliatory move yet from Beijing amid escalating economic tensions between the world’s two largest economies.

“Given that American goods are no longer marketable in China under the current tariff rates, if the U.S. further raises tariffs on Chinese exports, China will disregard such measures,” said the statement.

“It’s Become a Joke” — Beijing Slams U.S. Tariff Tactics

In unusually sharp language, China’s Commerce Ministry dismissed the repeated use of tariffs by the U.S. as “a numbers game” that has lost economic meaning and turned into political theater.

“It’s become a joke,” the ministry stated, accusing Washington of weaponizing trade through coercion and intimidation.

At the same time, Beijing declared it would “resolutely counterattack and fight to the end” if the U.S. continued to infringe on China’s national interests.

Markets Rattle, Global Risk Grows

The announcement sent S&P 500 futures and European stocks downward, while the Hang Seng China Enterprises Index pared earlier gains. The U.S. dollar weakened further, with Bloomberg’s U.S. currency index falling over 1%.

Economic analysts warn that these developments could lead to a global supply chain realignment, rising consumer costs, and a lasting impact on investor confidence.

Beyond Trade: Cultural & Human Impacts

The rift is spilling into broader spheres of U.S.–China relations. In addition to economic retaliation, Chinese authorities have:

• Cut the number of American films allowed in Chinese theaters
  
• Warned Chinese citizens about travel risks in certain U.S. states
  
• Advised students to reconsider study abroad plans in the U.S.

This growing divide reflects a broader chilling of people-to-people and cultural exchange, once seen as a buffer in times of diplomatic stress.

Xi Jinping Responds: “We Will Not Be Intimidated”

In his first public remarks since the escalation, President Xi Jinping emphasized China’s resolve:

“One that goes against the world risks being isolated themselves,” Xi said.

“No matter how the external environment changes, China will remain calm and focused on its own affairs.”

Xi reaffirmed that China does not rely on the goodwill of others for its development, sending a clear signal that Beijing will stand firm under pressure.

No Off-Ramp in Sight

With both countries trading blows at unprecedented tariff levels, analysts say the trade war may now be at a stalemate with few immediate off-ramps. Trump’s administration continues to push tariffs as a tool to reduce the U.S. trade deficit and punish China for fentanyl-related concerns and other political grievances.

At present, U.S.–China trade tops $700 billion annually. Without a deal, these tariffs are expected to significantly raise costs for businesses and consumers on both sides and fuel further global market volatility.