China Raises Tariffs on US Goods to 125%, Promises to Stop

The current US government has become the instigator of a new round of trade war with China, first by raising the basic tariff rate to 20% and adding 34% “retaliatory tariffs” to them, and then gradually increasing the effective rate to 145%. China is now promising to raise tariffs on US imports to 125%, but intends to stop there.

Image Source: Unsplash, Ali Mkumbwa

Representatives of the PRC customs authorities accompanied their new decision with the following comment: “Even if the US continues to impose higher tariffs, this will no longer make economic sense and will become a kind of joke in the history of the world economy.” Accordingly, the Chinese side is thereby demonstrating its readiness to limit the increase in import duties on American goods to a rate of 125%. Until recently, this value did not exceed 84%, but the escalation of the conflict by the American leadership forced the PRC authorities to give some kind of response.

New import duties of 125% on American goods will go into effect in China on April 12, tomorrow. Since further tariff increases on the Chinese side will not be accepted by the market, even if the American side continues to raise its tariffs, China will simply not pay attention to it, as explained by Chinese officials. This news caused both American and Chinese stock indices to fall. The American national currency also weakened. The PRC authorities believe that manipulation of customs tariffs on the American side has turned into a means of oppression and coercion, having lost its original economic meaning.