China’s Ministry of Finance has announced a sharp increase in tariffs on all goods imported from the United States raising duties to 125% effective April 12.
The decision comes in response to recent clarification from the White House that US tariffs on Chinese goods have climbed to 145% in 2025.
In a direct statement issued on Friday, the Chinese government said it will no longer respond to any further tariff hikes from Washington describing US trade actions under the Trump administration as economically irrational.
“Given that American goods are no longer marketable in China under the current tariff rates if the US further raises tariffs on Chinese exports China will disregard such measures” the Ministry of Finance said.
Chinese authorities stated that retaliating against future increases has become futile as the latest US tariff moves no longer align with market logic.
Prior to this revision Chinese tariffs on American goods were applied selectively at 10% or 15% depending on the product category.
The new 125% blanket tariff replaces those earlier rates and covers all categories of US imports.
In a separate release, the Ministry of Commerce criticized Washington for its continued use of tariffs as a political and economic tool.
“The US has turned tariff increases into a numbers game. This behavior is devoid of economic merit and reflects an approach centered on coercion” the statement said.
Beijing also warned of broader countermeasures if the US continues to infringe on China’s rights and interests emphasizing that it will respond firmly and without hesitation.
The statement added that the US will be held responsible for the economic consequences of its actions.
Financial markets reacted swiftly to the announcement as the S&P 500 futures declined further following the news.
The Hang Seng China Enterprises Index erased earlier gains and the US dollar extended its losses pushing Bloomberg’s US dollar index to a drop of more than 1% for the day.
The tariff hikes come amid a deteriorating trade relationship that has begun to affect sectors beyond goods. On Thursday Chinese regulators announced new restrictions on the number of US films allowed in Chinese cinemas indicating that services and cultural exchanges could be the next front in the dispute.
Earlier in the week Chinese officials advised citizens against traveling to the United States citing unspecified security risks.
They also warned students to reconsider plans to study in certain US states marking a shift away from prior efforts to improve bilateral people-to-people engagement.
In 2024, bilateral goods trade exceeded $700 billion. However both sides now face rising costs and logistical hurdles as they adjust supply chains to avoid higher tariffs.
Last year, the leading US exports to China included crude oil liquefied petroleum gas soybeans and industrial machinery.
On the import side, smartphones laptops and lithium-ion batteries from China dominated US trade receipts. These sectors are expected to feel the impact of the latest tariff escalation immediately.
With no clear path to resolution and both sides entrenched in their positions the risk of prolonged trade disruption has increased.
The Chinese government has made it clear that unless Washington changes its current approach negotiations will remain stalled.
The US administration has not issued a formal response to Beijing’s latest move at the time of reporting.
