In a sharp escalation of the ongoing trade war, China has retaliated against the United States’ dramatic tariff increases by imposing a staggering 125% tariff on American goods. This move comes just hours after U.S. President Donald Trump raised tariffs on Chinese imports to 145%, a step that Beijing condemned as a clear violation of global trade norms.
China’s Retaliation: A Response to Economic Bullying
China’s Ministry of Commerce responded swiftly, labeling the U.S. tariff hikes as “economic bullying” and accusing the U.S. of turning the tariff dispute into a numbers game. The Chinese government also criticized the U.S. for undermining its own credibility on the global stage with these extreme and irrational measures. In a statement, China’s State Council Tariff Commission emphasized that the new tariffs would be enforced starting on Saturday, portraying the move as a necessary defense against the U.S.’s unilateral actions.
Trump’s Confidence and the Global Reaction
On the other hand, President Trump remained defiant, tweeting on his social media platform, Truth Social, that the U.S. was doing very well in its tariff policy, describing it as “exciting for America and the world.” He further expressed that China remains firmly within the scope of U.S. trade actions, criticizing the country for showing no respect for global markets. Trump’s rhetoric marks the continuation of an aggressive stance on trade with China, which has already fueled tensions in the global economic landscape.
Xi Jinping’s Call for Global Unity Against Unilateral Actions
Amid these mounting tensions, Chinese President Xi Jinping conveyed a sobering message, stating in his conversation with Spanish Prime Minister Pedro Sánchez that there are no winners in a trade war and that standing against the world would only yield negative results. Xi’s comments underscore the gravity of the situation and reflect the growing sentiment of global trade instability due to these escalating tariff conflicts.
The European Response: A Potential Shift in Alliances
In a significant development, high-ranking European Union officials are planning an unprecedented visit to Beijing later in July. This trip, which breaks with the usual diplomatic protocol, signals Europe’s interest in deepening ties with China in response to the U.S.’s aggressive trade policies. China has called on European nations to stand against the “unilateral bullying” of the United States, furthering the diplomatic push to rally global support against Washington’s tariff measures.
China’s Trade Complaints: A Legal Challenge at the WTO
In parallel, China has filed two formal complaints with the World Trade Organization (WTO) against the U.S. tariffs, intensifying the legal battle over trade practices. Meanwhile, Xi Jinping is preparing for diplomatic visits to Vietnam, Malaysia, and Cambodia, aimed at strengthening China’s regional relationships as part of a broader strategy to solidify its position in the global trade arena.
The Yuan’s Resilience Amid Economic Strain
On the financial front, the Chinese yuan (CNY) has shown signs of recovery against the U.S. dollar, improving from its lowest point in 17 years. As of April 11, 2025, the yuan had strengthened following a significant dip to 7.3498 yuan per dollar just days earlier. The U.S. dollar index (DYX), meanwhile, reached a three-year low on Friday, signaling broader shifts in global currency dynamics.
Conclusion:
As the U.S. and China continue their trade standoff, the global economic landscape remains uncertain, with escalating tariffs, retaliatory measures, and diplomatic tensions signaling a prolonged period of volatility. The actions taken by both nations have far-reaching implications, not only for their economies but also for international markets as a whole.
Source:
Bitcoin.com
