In response to the newest round of U.S. tariffs, China announced a 125 per cent tariff on all American goods on Friday. The White House stated that, with this latest move, China's total tariff burden has reached at least 145 per cent. Following the imposition of these steep tariffs, China declared that it would not retaliate further if the U.S. decides to introduce additional tariffs, according to the BBC.

China has strongly criticised the “abnormally high tariffs” imposed by United States President Donald Trump, saying they “seriously violate international and economic trade rules, basic economic laws and common sense and are completely unilateral bullying and coercion”. The Chinese government added that Trump’s tariffs “have become a numbers game with no practical significance in economics” and serve as clear evidence of his “bullying and coercion”. “It will become a joke,” the Chinese Commerce Ministry remarked.

The tariff hike follows the White House’s continued pressure on China, the world’s second-largest economy and the second-biggest source of U.S. imports. In response, China’s Finance Ministry said, "The U.S. imposition of abnormally high tariffs on China seriously violates international and economic trade rules, basic economic laws and common sense and is completely unilateral bullying and coercion."

On April 11, during a meeting with Spain’s Prime Minister, Chinese President Xi Jinping called the European Union to stand with Beijing against "unilateral bullying."

Following China’s announcement, S&P 500 futures dropped even more, while gains in the Hang Seng China Enterprises Index futures were trimmed. The U.S. dollar also continued to weaken, leading Bloomberg’s currency index to fall by over 1% for the day.

Earlier this week, just hours after Donald Trump’s broad tariff measures took effect, he announced a 90-day pause on most of them. However, tariffs targeting China were not included in the pause; on the contrary, they were raised to 145 per cent.

China has issued a strong warning, stating it will “resolutely counterattack and fight to the end” if the United States keeps violating its rights and interests. It also held the US wholly accountable for the harm caused by the tariffs.

In swift retaliation, China cut back on imports of Hollywood movies and U.S.-grown soybeans. Soybean had been the top American agricultural export to China, but China has now turned to Brazil as its primary supplier. Recently, the tension between Beijing and Washington has gone beyond retaliatory tariffs, affecting services and people-to-people connections.

With Trump’s pause in effect, all countries are now subject to a 10 per cent tariff, except for steel, aluminium, and automobiles, which continue to carry a 25 per cent tariff. In addition, Canada and Mexico face a 25 per cent tariff on products not included in the United States-Mexico-Canada Agreement (USMCA)