China Slaps 125% Tariffs on US Goods Starting April 12, Deepening Trade War After Trump’s Moves

Beijing Responds Swiftly to Trump’s 145% Tariff Bombshell with Retaliatory Measures

In a direct response to the drastic 145 percent tariff hike announced by US President Donald Trump on Chinese exports, China has retaliated by raising its own tariffs on American goods to 125 percent, effective from April 12. The announcement was made by China’s Ministry of Finance late on April 11, just hours after President Xi Jinping’s meeting with Spanish Prime Minister Pedro Sanchez in Beijing. The move signals a sharp escalation in the trade standoff that now threatens to spill into other sectors of global economic interaction.

The statement from China’s Finance Ministry was unequivocal in its tone, labeling Washington’s trade actions as a violation of international norms and economic logic, while vowing to disregard any further tariff measures initiated by the United States. Beijing emphasized that American goods were now largely unmarketable in China under current tariff structures, rendering further increases “irrelevant.”

Highlights:

• China retaliates with 125% tariffs on US goods effective April 12.

• Tariffs come in response to Trump’s sweeping 145% duty on Chinese exports.

• Chinese ministry states future US tariff hikes will be ignored.

Also Read :- China Defiant on Tariffs: Xi Slams US ‘Unilateral Bullying’ in Talks with Spain’s Sanchez

Xi Jinping Calls on European Union to Resist ‘Unilateral Bullying’

The backdrop for China’s tariff announcement was set earlier on April 11, when President Xi Jinping held a strategic meeting with Spanish Prime Minister Pedro Sanchez in Beijing. During their bilateral discussions, Xi made a direct appeal to the European Union to partner with China in pushing back against what he described as “unilateral bullying” — a pointed critique of Washington’s trade posture.

Xi’s remarks underscore China’s growing diplomatic efforts to mobilize support within Europe to counterbalance US protectionism, and reaffirm Beijing’s commitment to multilateralism. The Chinese leader also praised Spain’s deepening engagement with China, expressing a desire to inject “strategic determination and vitality” into bilateral ties amid global uncertainty.

Highlights:

• Xi urges EU to collaborate with China against US unilateralism.

• Emphasizes stronger EU-China ties to safeguard global economic stability.

• Meeting with Spain’s PM marks strategic outreach to European allies.

Chinese Ministries Slam US Trade Policy as ‘Coercive and Economically Meaningless’

In a rare double-ministerial response, both China’s Ministry of Finance and Ministry of Commerce issued scathing statements condemning Washington’s actions. The Commerce Ministry characterized the US’s aggressive tariff policy as “a numbers game” with no real economic substance, accusing the Trump administration of weaponizing trade policy for political gain.

China reiterated its position that it would “resolutely counterattack and fight to the end” if Washington persisted in infringing upon its economic interests. The ministry further added that the United States must bear full responsibility for the global economic disruption and bilateral damages resulting from these tariff escalations.

Beijing’s use of unusually sharp language signals a departure from earlier measured rhetoric, pointing to a hardening stance in response to what it perceives as Washington’s disregard for dialogue and consensus-based trade norms.

Highlights:

• China calls US tariff hikes coercive and economically baseless.

• Commerce Ministry warns of continued countermeasures if US persists.

• Beijing places responsibility for trade damage squarely on Washington.

Global Market Reaction: US and Asian Futures Rattle Amid Heightened Volatility

The announcement of China’s 125% tariff hike sent tremors through global financial markets, with US equity futures and Asian indices reacting swiftly. Futures on the S&P 500 slipped further, while the Hang Seng China Enterprises Index pared gains as investors reassessed the impact of worsening trade relations on corporate earnings and capital flows.

Currency markets also reflected the deepening uncertainty. The US dollar weakened significantly, with Bloomberg’s Dollar Spot Index plunging by more than 1% on the day. Traders appeared to price in increased risk premium for US equities and a potential slowdown in Chinese demand for American exports across critical sectors such as agriculture, electronics, and energy.

Highlights:

• S&P 500 futures dip further following China’s tariff announcement.

• Hang Seng indices reverse gains amid global trade jitters.

• Dollar Index declines over 1% as risk sentiment deteriorates.

Beyond Tariffs: Beijing Extends Retaliation to Cultural and Soft Power Sectors

In a move that expands the trade confrontation into the realm of cultural and soft diplomacy, Beijing has moved to curtail the number of American films allowed in Chinese cinemas, according to industry sources and state media reports. This decision, while largely symbolic, is widely interpreted as a signal of broader retaliation beyond the confines of trade and tariff measures.

Additionally, Chinese authorities have reportedly begun tightening scrutiny on visa applications and academic exchanges with US institutions, signaling that people-to-people ties may soon be another casualty of the escalating conflict. The government has already warned students about security risks in “certain US states,” hinting at a new phase in bilateral disengagement.

Highlights:

• China restricts the number of US films allowed in domestic cinemas.

• Moves signal broader retaliation beyond tariffs.

• Tensions begin affecting education, entertainment, and people exchanges.

Tariff War Dynamics Shift as Global Alliances Face Realignment Pressure

The current tariff exchange between the US and China represents a tectonic shift in global trade dynamics, as both sides abandon diplomatic moderation in favor of direct economic retaliation. The resurgence of aggressive trade nationalism, particularly from Washington, has compelled Beijing to adopt a hardened economic and geopolitical posture.

With multilateral trade institutions under strain, regional and global alliances may now face realignment. China’s pivot toward the European Union, as evident in Xi’s remarks to Pedro Sanchez, suggests a concerted effort to rebuild a coalition of economically aligned partners that reject protectionist measures. Meanwhile, businesses around the world must now recalibrate their supply chains and risk management strategies to account for a protracted US-China economic confrontation.

Highlights:

• US-China tariff war enters new phase of aggressive tit-for-tat escalation.

• China pivots toward EU as alternative trade partner.

• Global trade institutions under strain amid shifting alliances.