China Raises Tariffs to 125%: Xi Jinping’s Bold Statement

Xi Jinping Declares Strength Amid U.S. Trade War Escalation

China has escalated its trade dispute with the United States by raising tariffs on American goods from 84% to 125%, effective immediately. This move is in direct response to President Donald Trump’s recent increase of U.S. tariffs on Chinese imports to a total of 145%, citing issues such as China’s alleged role in the fentanyl trade and a perceived “lack of respect” .​

President Xi Jinping addressed the situation, stating, “We are not afraid,” and emphasized China’s resilience and self-reliance in the face of external pressures. He criticized the ongoing tariff exchanges as economically meaningless and warned that continued tit-for-tat measures could become a “joke” in global economic history .​

In addition to the tariff increases, China has filed a complaint with the World Trade Organization, accusing the U.S. of unilateral and coercive trade practices . The Chinese government has also implemented measures affecting U.S. companies, including import restrictions and advisories against travel and study in the U.S., which could impact sectors like education and entertainment .​

Economists warn that this escalating trade war could have significant repercussions, potentially leading to increased inflation and a recession in the U.S., with industries such as agriculture, aerospace, and semiconductors facing severe financial challenges .

Despite the rising tensions, President Trump remains optimistic about reaching a historic trade deal with China, asserting that his administration is engaged in negotiations with multiple countries and has received numerous trade offers.