China Increases Tariffs on U.S. Imports to 125% Amid Deepening Trade Dispute

China’s Ministry of Finance has announced a substantial hike in tariffs on American goods, raising them from an average of 84% to 125%.

The move, officially confirmed on Friday, is widely viewed as a direct countermeasure to the recent U.S. decision to impose a 145% tariff on a broad range of Chinese exports. Beijing’s latest action targets multiple American industries, including agriculture, automotive, electronics, and consumer products.

According to the Finance Ministry, the tariff increase is aimed at “safeguarding national economic interests and maintaining a fair international trade environment,” emphasizing that the decision aligns with World Trade Organization (WTO) principles.

“This adjustment is a necessary response to unjustified U.S. protectionist actions,” the statement added.

Economic Impact and Industry Reactions

The tariff hike is expected to place substantial pressure on American exporters who rely heavily on access to the Chinese market. Key U.S. sectors, particularly in food production and manufacturing, could face significant losses as their products become more expensive and less competitive in China.