Trump raises tariffs on China to 125 percent amid intensifying trade war

U.S. escalates economic confrontation as China vows to retaliate against Trump’s latest tariff hike.

A shop owner displays a toy resembling US President Donald Trump at the Yiwu International Trade Market in Yiwu, Zhejiang province, eastern China, on April 10, 2025. Photo by Adek Berry/AFP

By Anna Fadiah and Hayu Andini

In a bold and controversial move, Trump raises tariffs on China to 125 percent, signaling a new and more aggressive phase in the ongoing trade war between the United States and Beijing. The announcement came late Wednesday, just hours after China retaliated with its own countermeasures against previous US tariff increases. The decision—made despite a temporary halt on tariff hikes for other nations—has already shaken global markets and ignited fears of deeper economic turmoil.

With this latest move, President Donald Trump appears determined to double down on his “America First” strategy, targeting what he calls “unfair practices” by China. His administration accuses Beijing of manipulating trade rules, stealing intellectual property, and flooding global markets with cheap goods—charges China has repeatedly denied.

An escalation with global consequences

The timing of this announcement has raised eyebrows. On the same day that a prior tariff increase—up to 104 percent—came into effect, Trump delivered an unexpected blow by boosting that figure even further to 125 percent.

“The Chinese government has shown a total lack of respect for American trade policy,” Trump said in a press briefing at the White House. “This is not just about trade. This is about fairness, jobs, and national security.”

While other countries were granted a 90-day pause on further tariff hikes to avoid disrupting global alliances, China found itself squarely in Trump’s crosshairs. The president insisted that the pause was a chance for “friends and allies to come to the table,” but emphasized that “China is a different story entirely.”

Economists are already warning that the decision to raise tariffs on China to 125 percent could have ripple effects across various sectors—particularly consumer goods, automotive parts, electronics, and raw materials.

China hits back swiftly

Beijing was quick to respond. Within hours of Trump’s announcement, Chinese officials unveiled a new wave of retaliatory tariffs targeting a wide range of US exports, including soybeans, liquefied natural gas, and manufactured goods.

In a statement, the Chinese Ministry of Commerce accused the US of “economic coercion” and warned that “any attempt to bully China into submission will be met with firm countermeasures.”

The Chinese response reflects the increasingly tit-for-tat nature of the conflict, which many experts now describe as the most intense trade standoff since the 1930s.

“We are witnessing the unraveling of a deeply integrated global trade system,” said Mei Ling Zhang, a trade analyst at the Shanghai International Policy Institute. “Each round of retaliation brings us further from compromise and closer to prolonged economic decoupling.”

What does this mean for the US economy?

While the Trump administration argues that the tariffs will protect American jobs and industries, critics fear that higher costs will be passed down to consumers.

Retailers, manufacturers, and farmers—many of whom rely on Chinese imports or access to the Chinese market—are bracing for impact. Already, reports from the National Retail Federation suggest that prices on household goods, including electronics, clothing, and kitchen appliances, could rise in the coming months.

Small businesses may suffer the most, lacking the scale to absorb sudden increases in supply chain costs.

“There’s no way we can continue to sell at competitive prices if tariffs go up to 125 percent,” said Maria Alston, owner of a mid-sized electronics import company in California. “We’re talking about either raising prices significantly or shutting down entirely.”

The agricultural sector is also on edge. China is one of the biggest buyers of US soybeans and pork, and new retaliatory measures could cut off vital revenue streams for American farmers already struggling with climate-related disruptions and market instability.

Market volatility and global reaction

Wall Street reacted nervously to the developments. The Dow Jones Industrial Average dropped more than 500 points on Thursday morning, while Asian markets posted broad losses overnight. Analysts fear that investor confidence could continue to erode if the trade war persists without resolution.

European leaders, too, are watching with concern. While the EU was granted temporary relief from new US tariffs, Brussels warned that the escalation between the US and China could have global repercussions.

“Protectionism harms us all,” said European Commission President Ursula von der Leyen. “We call on both Washington and Beijing to seek constructive dialogue before the damage becomes irreversible.”

Is there a path to resolution?

Despite the rising tensions, some experts believe the door to negotiation remains open. Trump has previously shown willingness to shift course under economic pressure or political incentive.

Trade representatives from both nations are expected to meet behind closed doors in Geneva next week under the mediation of the World Trade Organization.

However, optimism is limited.

“This is no longer just about trade policy. It’s about geopolitical rivalry, national pride, and competing worldviews,” said William Carter, a fellow at the Center for Strategic and International Studies. “Unless both sides find a face-saving off-ramp, we’re headed for a long and painful confrontation.”

Political stakes for Trump

For President Trump, the stakes go far beyond economic policy. With the 2026 midterm elections looming, his handling of the China issue could make or break his political momentum. Supporters praise his tough stance, arguing that previous administrations were too soft on Beijing.

But critics within the Republican Party worry that the escalating trade war could alienate key voting blocs, including farmers and small business owners.

“We support strong policies on China, but not at the cost of our own economy,” said Senator Jim Miller of Iowa. “There needs to be a smarter, more strategic approach.”

A pivotal moment in global trade

As Trump raises tariffs on China to 125 percent, the world watches closely. The decision marks a pivotal moment in modern economic history—one that could redefine not only the US-China relationship but the structure of global trade for decades to come.

Whether the move will produce the intended results or trigger deeper instability remains to be seen. But what is clear is that the cost of escalation—economic, political, and diplomatic—continues to rise.

For now, both sides appear locked in a dangerous dance of power, with no clear end in sight.