China raises tariffs on US goods to 125%, offers to stop trade war
Illustrative photo: China has raised tariffs on the US to 125% (Getty Images)
China has increased tariffs on all goods of United States origin from 84% to 125%. The changes are set to come into force on April 12, reports Reuters.
This step was taken after President Donald Trump raised US tariffs on China to 145%.
The Ministry of Finance of China adds that if the US continues to impose additional tariffs on Chinese goods exported to the US, China will ignore them.
China called on the United States to take a big step to abolish a “reciprocal tariff” and completely correct its illegal practice.
Trade war
Trump launched a trade war on April 2, America's “liberation day,” by imposing tariffs on all goods from China at 54%.
Since then, Beijing has responded symmetrically, promising to go all the way.
On April 9, Trump announced a 90-day pause in tariffs for the largest trading partners. Nonetheless, he raised tariffs on Chinese imports to 145%, further escalating the confrontation between the world's two largest economies.
Tariffs of more than 100% make any trade between the two countries pointless.
Fears of a recession following the US-China trade war led to a drop in US markets on April 10. Investors sold off US bonds as well as the US dollar. Having lost confidence in Washington, investors are buying currencies such as the Swiss franc, euro, yen, and gold.
