China has increased its retaliatory tariffs on imports from the United States to 125 percent, escalating the trade war between the economic powerhouses.
In his first public comments on the war, Xi Jinping, Chinese leader, said his nation was “not afraid”.
“The successive imposition of excessively high tariffs on China by the US has become nothing more than a numbers game, with no real economic significance,” the Chinese commerce ministry said in a statement on Friday.
“It merely further exposes the US practice of weaponizing tariffs as a tool of bullying and coercion, turning itself into a joke.
“If the US insists on continuing this numbers game with tariffs, China will not engage.
“However, if the US persists in substantively harming China’s interests, China will resolutely take countermeasures and fight to the end.”
Stocks plunged in Europe following the move with the US dollar falling to its weakest against the euro since 2022.
The Donald Trump-led US administration is yet to respond to the move.
Despite drawing first blood with a global tariff blitz, Trump has retaliated with higher tariffs against nations and unions that responded to his taxes on goods.
When Beijing responded by announcing a reciprocal 84 percent tariff on US goods last week, Trump said their actions “lacked respect” and hit back with a 125 percent imposition, while lowering the rates for other nations.
China’s new rates on US goods are set to take effect on April 12.
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