BEIJING: Beijing on Friday (Apr 11) increased its tariffs on US imports to 125 per cent, hitting back against President Donald Trump's decision to hike duties on Chinese goods to 145 per cent.
The 125 per cent tariffs, up from 84 per cent, will apply from Saturday, further raising the stakes in a trade war that threatens to upend global supply chains.
The hike comes after the White House kept the pressure on the world's No 2 economy and second-biggest provider of US imports by singling it out for an additional tariff increase, having paused most of the "reciprocal" duties imposed on dozens of other countries.
"The US imposition of abnormally high tariffs on China seriously violates international and economic trade rules, basic economic laws and common sense and is completely unilateral bullying and coercion," China's finance ministry said in a statement.
It also said China would "ignore" further tariff hikes by the US because American goods would no longer make economic sense for importers.
"The US' repeated imposition of abnormally high tariffs on China has become a numbers game and has no practical economic significance," the statement read, adding that China urges the US to "take a big step forward in eliminating the so-called 'reciprocal tariffs' and completely correct its wrongful practices".
The country's commerce ministry reiterated that China will resolutely take countermeasures and "fight to the end" if the US insists on continuing to infringe on its interests in a substantive way.
Feb 1, US: Announces an additional 10 per cent tariff on all imports from China over its alleged role in the fentanyl supply chain.
Feb 4, China: Retaliates with a package of tariffs on a range of US products - 10 per cent levies on crude oil, farm equipment, large-displacement vehicles and pickup trucks, and 15 per cent on coal and liquefied natural gas (LNG).
Mar 4, US: Doubles the tariff on China to 20 per cent.
Mar 4, China: Responds with an additional 15 per cent tariff on US chicken, wheat, corn and cotton as well as an extra 10 per cent levy on soybeans, sorghum, pork, beef, aquatic products, fruits and vegetables and dairy imports.
Apr 2, US: Trump's so-called "Liberation Day" when he announces an additional 34 per cent duty on Chinese imports as part of his slew of "reciprocal" tariffs. The reciprocal tariff comes on top of the earlier 20 per cent levy.
Apr 4, China: Matches the US' new reciprocal tariff by announcing an additional 34 per cent duty on all US imports.
Apr 7, US: Threatens to raise the reciprocal tariffs on China to 104 per cent if it does not withdraw the 34 per cent levy.
Apr 9, US: Follows through with the threat, and the higher tariffs kick in.
Apr 9, China: Hits back by raising its earlier 34 per cent levy on US goods to 84 per cent.
Apr 9, US: Responds by raising the reciprocal tariffs on China further to 125 per cent later in the day. (This is on top of the 20 per cent tariff the US announced on Mar 4)
Apr 11, China: Retaliates by raising the extra tariff on US imports to 125 per cent as well.
A commerce ministry spokesperson also blasted the tariffs as a "numbers game" that "will become a joke", and that the US should bear full responsibility for Trump's scattergun tariff regime.
China's mission to the World Trade Organization separately said on Friday it had filed an additional complaint to the trade body over US tariffs.
Trump had told reporters at the White House on Thursday that he thought the US could make a deal with China and said he respected Chinese President Xi Jinping.
"In a true sense he's been a friend of mine for a long period of time, and I think that we'll end up working out something that's very good for both countries," he said.
Xi, in his first public remarks on Trump's tariffs, told Spanish Prime Minister Pedro Sanchez during a meeting in Beijing on Friday that China and the European Union should "jointly oppose unilateral acts of bullying", China's state news agency Xinhua reported.
"There are no winners in a trade war," the Chinese leader told his guest, adding that by acting together, the world's second-largest economy and the 27-strong European trade bloc could help uphold "the global rules-based order."
The turmoil unleashed by Trump's tariffs showed few signs of easing on Friday, with markets tumbling and foreign leaders puzzling how to respond to the biggest disruption to the world trade order in decades.
A brief reprieve for battered stocks seen after Trump decided to pause duties for dozens of countries for 90 days quickly dissipated, as attention returned to his escalating trade war with China that has fuelled global recession fears.
Global stocks fell, the dollar slid and a sell-off in US government bonds picked up pace on Friday, reigniting fears of fragility in the world's biggest bond market. Gold, a safe haven for investors in times of crisis, scaled a record high.
"Recession risk is much, much higher now than it was a couple weeks ago," said Adam Hetts, global head of multi-asset at Janus Henderson.
US Treasury Secretary Scott Bessent tried to assuage sceptics by telling a Cabinet meeting on Thursday that more than 75 countries wanted to start trade negotiations. Trump himself expressed hope of a deal with China,.
But the uncertainty in the meantime extended some of the most volatile trading since the early days of the COVID-19 pandemic.
Asian indices mostly followed Wall Street lower on Friday. In Europe, China's latest tariff hike sent stocks lower, leaving the STOXX 600 down more than 1 per cent on the day and set for another drop this week, one of its most volatile on record.
Bessent shrugged off the renewed market turmoil on Thursday and said striking deals with other countries would bring certainty.
The US and Vietnam have agreed to begin formal trade talks, the White House said. The Southeast Asian manufacturing hub is prepared to crack down on Chinese goods being shipped to the United States via its territory in the hope of avoiding tariffs, Reuters exclusively reported.
Japanese Prime Minister Shigeru Ishiba, meanwhile, has set up a trade task force that hopes to visit Washington next week.
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