China announced that it has increased the tariff on US-origin products to 125%. The new tariffs will take effect as of April 12.
In a statement from the Chinese Ministry of Finance, it was noted that any new tariff decisions made by the US would not be taken into consideration. This statement was interpreted as Beijing not planning a new tariff against Washington.
Meanwhile, the Chinese Ministry of Commerce announced that a lawsuit had been filed against the US at the World Trade Organization (WTO) due to the tariff increases. The ministry emphasized that China would protect its legitimate rights and interests and uphold the multilateral trading system.
Tariff Tensions Escalated Step by Step
On April 2, President Trump announced that he would impose an additional 34% tariff on China, to which China responded with a retaliatory tariff at the same rate. In response, Trump stated that if China did not back down, an additional 50% tariff would be imposed. China countered this threat by raising the tariff on US products to 84%.
As the tariff standoff escalated, the US increased tariffs on China first to 125%, and then to 145%. While the US delayed additional tariffs on other countries by 90 days, the tariffs imposed on China were implemented immediately.
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