Trade tensions are once again escalating, as China has officially announced plans to raise tariffs on US imports to 125%, effective April 12.
According to a statement from the Ministry of Finance, the move is a direct response to the U.S.’s recent tariff hike on Chinese goods to the same level, an action China says violates established trade and economic regulations.
Over the past weeks, the US and China have been issuing countermeasures against each other as a response to the increasing tariffs on imported goods.
A recent survey also revealed that the majority of Americans are bracing for higher costs due to the additional tariffs. 73% of respondents in the Reuters/Ipsos survey anticipate price increases for essentials.
Meanwhile, retailers in the US and North America have been citing tariffs as the reason behind their financial struggles as they continue to cut jobs and shutter locations as a response to the changing economic environment.
On April 7, President Donald Trump wrote on the Truth Social platform that additional tariffs are set to be imposed and no further discussion with China will be held.
“Additionally, all talks with China concerning their requested meetings with us will be terminated,” he wrote.
“Negotiations with other countries, which have also requested meetings, will begin taking place immediately.”
The recent decisions come after a US trade policy review concluded that China failed to comply with its commitments made under the 2020 trade agreement.
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