China to increase tariffs on US goods to 125%, up from 84%
China on Friday escalated its trade war with the United States by imposing additional tariffs of 125 per cent on US imports, directly retaliating against President Donald Trump's recent decision to raise duties on Chinese goods to an average 145 per cent - moves some economists say could up-end global supply chains.
The increase follows the White House maintaining pressure on China, the world's second-largest economy and the second-largest provider of imports to the US, by singling it out for an additional increase in tariffs even as most of the "reciprocal" tariffs imposed on dozens of other countries has been paused.
China's Finance Ministry said: "Marinely high US tariffs against China seriously violate international and economic trade rules and basic economic common sense and is completely unilateral bullying and coercion."
Investors fear the trade war will trigger a recession and send trillions in market value up in smoke since last week, with the trade war a catalyst for the escalating trade war.
Yesterday, Trump said he was pausing his sweeping tariffs for 90 days, setting 10 percent baseline levees on the rest of the world (but much higher on China).
Trump announced he was suspending a planned levy increase covering nearly all countries for 90 days, sparking massive rallies in stocks on Wall Street and across Asia after days of turmoil.
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