China escalates fiery trade war with Trump with 125 per cent tariffs
China has hit back at President Donald Trump as it announced further tariffs of 125 per cent on US goods in further signs that a full-blown trade war could still worsen.
The US president refused to offer China a three-month reprieve from tariffs after it quickly retaliated against Trump following Liberation Day.
The Chinese finance ministry said it was prepared to take strong countermeasures against the US and continue to “fight to the end” in its full-blown trade war.
Trump said on Wednesday that all countries would face “uni tariffs of ten per cent in 90 days but he accused China of a “lack of respect” after it had imposed 84 per cent tariffs on China.
Current US tariffs on China stand at 145 per cent. Mexico and Canada also face separate tariffs of 25 per cent.
China indicated it would not further escalate its trade war if markets decided US goods would not be exported.
China’s foreign ministry said: “Given that there is no longer any possibility of market acceptance for US goods exported to China under the current tariff levels, if the US side subsequently continues to impose tariffs on Chinese goods exported to the US, the Chinese side will pay no attention to it.”
Stocks markets in Asia have continued to plunge as Hong Kong’s Hang Seng was set for its worst week since 2008.
US markets took a wary view of Trump and treasury secretary Scott Bessent’s optimism about trade deals being made as they remained far below February peaks.
The UK is likely to be impacted by the trade war between the world’s two largest economies.
Cheap goods from China are likely to flood into Britain, weighing down on price growth.
The likely hit to growth in the US may also weaken demand for UK goods and lead to lower sales.