China has announced it will raise tariffs on US goods from 84% to 125%, the latest move in an escalating trade war between the two largest economies. The US has imposed a total of 145% tariffs on Chinese imports, prompting China to describe the policy as “economic bullying”. Beijing warned that it will take countermeasures, including filing another lawsuit with the World Trade Organization.
The new tariffs, set to begin Saturday, will affect goods such as soybeans, aircraft parts, and drugs. The US is also imposing a 20% tariff on Chinese exports related to fentanyl production. China’s Commerce Ministry accused the US of substantially infringing on its interests, vowing to fight back “to the end”.
The trade war has raised fears of a global slowdown and has caused alarm in stock and bond markets. Some economists warn that the escalating tensions could lead to a recession. With the two largest economies locked in a battle, uncertainty persists over when the conflict will end.
China’s tariffs will likely increase prices on electronics such as computers and cell phones, industrial equipment, and toys imported from the US. White House officials hope the import taxes will create jobs by bringing production back to the US, but this is a long-term goal that could take years to materialize.
Source: https://www.pbs.org/newshour/politics/china-responds-to-new-trump-tariffs-will-raise-rate-on-american-goods-to-125-percent