Fri Apr 11 17:24:31 UTC 2025: ## US-China Trade War Intensifies as Tariffs Soar to 125%
**Washington/Beijing** – The escalating trade war between the United States and China reached a new peak Friday, with Beijing imposing a staggering 125% tariff on US goods in retaliation for President Trump’s import taxes. The move sent global markets into turmoil, causing the dollar to plummet and pushing US government bond yields higher.
Despite the market chaos, President Trump maintained his stance, asserting on social media that his tariff policy is “working really well” and is “very exciting for America, and the World!!!” He reiterated his hope for a deal with Chinese President Xi Jinping, describing Xi as a “friend,” but US officials indicated they expect China to initiate contact.
China’s Commerce Ministry countered that the US bears full responsibility for the escalating conflict, dismissing Trump’s tariffs as a “numbers game.” While acknowledging that tariffs have reached near-prohibitive levels, the Ministry stated that further increases are unlikely. Meanwhile, Chinese President Xi Jinping declared his country is “not afraid” of the trade confrontation. He also called for the EU and China to jointly resist what he called “unilateral bullying practices.”
The dramatic escalation follows Trump’s initial imposition of sweeping tariffs last week, which he later partially rolled back. The initial market relief was short-lived, however, as the reality of the deepening trade war sunk in. The increased tariffs are raising concerns about higher consumer prices and the potential for a global recession, with economists warning of significant economic disruption.
The US Federal Reserve has already warned of higher inflation and slower growth as a consequence of the trade dispute. Investors are expressing concern, with some speculating that China may be selling off its US government bond holdings, further increasing borrowing costs for the US. The dollar reached a three-year low against the euro, and gold prices surged, reflecting investor anxiety.
While the EU has so far refrained from retaliatory tariffs, earning praise from President Trump, EU officials have warned they possess “a wide range of countermeasures,” including potential levies on US tech firms. High-level talks between the EU and China are scheduled for July, and EU trade officials will meet with US counterparts in Washington next week. The situation remains highly volatile, with global markets anxiously awaiting the next move in this escalating trade conflict.
First Piper 