On April 11, 2025, China announced a significant escalation in its trade dispute with the United States by increasing tariffs on American imports from 84% to 125%. This move came in direct response to the U.S. raising tariffs on Chinese goods to 145% while pausing duties on imports from other countries. China’s Finance Ministry criticized the U.S. actions as “unilateral bullying and coercion,” stating that such measures violate international trade rules and economic principles .
The heightened tariffs are expected to severely impact trade between the two largest economies, making many goods prohibitively expensive and potentially unprofitable for exporters. Analysts warn that this could lead to significant disruptions in global supply chains and increased costs for consumers. In response to the escalating tensions, China has filed a complaint with the World Trade Organization, accusing the U.S. of coercive trade practices .
Additionally, China is exploring further countermeasures, including antitrust investigations into major U.S. companies and reducing imports of American cultural products. The Chinese government is also considering economic stimulus measures to mitigate the domestic impact of the trade war .
The ongoing tariff exchanges have raised concerns about a potential global economic slowdown, with market volatility increasing and investor confidence waning. The situation underscores the fragility of international trade relations and the far-reaching consequences of prolonged economic conflicts.