China announced Friday that it would impose tariffs of 125% on US goods, while also stating that it would disregard any further tariff increases by President Donald Trump. According to Beijing, additional levies from the US are economically illogical for importers.
This action follows a week of intense market volatility, during which the two largest global economies exchanged trade restrictions.
China has accused Trump of disrupting the market with extensive tariffs, holding the United States accountable for the resulting turmoil.
While Trump has utilized tariffs to encourage manufacturers to establish operations in the United States and to lower barriers to American goods, he recently paused many tariffs for 90 days, while raising tariffs on China to a total of 145%.
Beijing's latest retaliatory measures bring its tariffs to 125%, effective Saturday. The Chinese finance ministry stated that further actions by the US would be ignored because US goods exported to China are no longer economically viable at current tariff levels.
Additionally, Beijing announced intentions to file a lawsuit with the World Trade Organization regarding the latest round of levies.
Trump has acknowledged potential "transition costs and transition problems" arising from his tariff strategy but has downplayed global market concerns.
European leaders, including Ursula von der Leyen and Emmanuel Macron, have expressed the need for the EU to maintain countermeasures in case negotiations with Trump falter.
Amidst the trade tensions, Chinese President Xi Jinping suggested that China and the EU should collaborate to resist "unilateral bullying practices."
Global markets, including those in Asia and Europe, experienced declines in response to China's latest actions. Oil prices and the dollar also fell, while gold prices surged to a new record high.
Critics argue that Trump's policies are causing disruption for companies, alienating allies, and increasing costs for US consumers.
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Despite the ongoing conflict, Trump has indicated that tariffs could be reinstated after 90 days if a satisfactory deal is not reached.
Several countries, including Canada, Vietnam, and Pakistan, have expressed interest in trade negotiations with the United States.
Xi Jinping is scheduled to visit Vietnam, Malaysia, and Cambodia next week, where trade discussions are expected to be prominent.