China’s Ministry of Finance announced Friday that it will raise tariffs on a wide range of U.S. goods to 125%, effective Saturday, escalating trade tensions between the world’s two largest economies.
The decision comes amid ongoing disputes over trade policies, technology access, and geopolitical concerns. According to the ministry, the tariff hike will apply to select U.S. imports, including agricultural products, automobiles, and certain industrial goods. The finance ministry said the measure is a direct response to what it described as “unilateral and protectionist actions” by the United States.
“China firmly opposes trade bullying and will take all necessary steps to defend its national interests,” the ministry said in a statement.
The announcement sent ripples through global markets, with investors concerned about the potential impact on global supply chains and inflationary pressures. Analysts warn that the tariff increase could further strain bilateral relations and disrupt international trade flows.
The U.S. has yet to issue a formal response, but trade officials have previously indicated they are considering countermeasures should China impose additional duties.
This move follows a series of tit-for-tat actions over the past several years, as both nations grapple with economic competition and shifting global dynamics. Experts note that this latest escalation could complicate diplomatic efforts and add uncertainty to already fragile economic forecasts.
What’s Affected?
Agricultural commodities like soybeans, corn, and wheat
American-made automobiles and automotive parts
Industrial machinery and electronics
Consumer goods including certain textiles and chemicals
Economists suggest the tariff increase could lead to price hikes for businesses and consumers, not only in the U.S. but also globally, as companies look to reroute supply chains and manage added costs.
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