China’s Customs Tariff Commission announced today that it will raise the customs duties on certain imports from the United States from 84% to 125%, effective April 12, 2025, escalating trade tensions between the world’s two largest economies.
The decision came as a direct response to the U.S. move to raise customs duties on Chinese goods to the same level of 125%. The Chinese Ministry of Commerce stated that with this trend, U.S. exports to China would no longer be commercially viable and many American products would effectively be excluded from the Chinese market.
China signaled that it has no intention of backing down or negotiating under the current conditions in a statement made in a stern tone.
The Tariff Commission stated that “the U.S. will not consider further increases in customs duties,” suggesting that Washington’s additional tariff increases would not lead to a reciprocal response, as U.S. goods are already priced in the Chinese market.
This latest development indicates a sharp escalation in the trade dispute that has defined US-China economic relations for years.
New customs duty rates will apply to a range of uncertain American imports, and analysts expect key sectors such as agriculture, automotive, and technology to feel this impact.