Sat Apr 12 02:56:56 UTC 2025: ## Trump’s Trade War Escalates as China Imposes 125% Tariffs on US Goods

**Washington/Beijing, April 12, 2025** – The escalating trade war between the United States and China took a dramatic turn Friday as China retaliated against President Donald Trump’s tariffs with a staggering 125% levy on US goods. This follows Trump’s initial imposition of sweeping import taxes, later partially rolled back to 10% for 90 days for some countries, excluding China.

Despite the market turmoil, President Trump maintained his tariff policy was “doing really well,” asserting it was “very exciting for America, and the World!!!” The White House echoed a degree of optimism, stating that 15 other countries had tariff offers “on the table” during the 90-day pause. However, Press Secretary Karoline Leavitt stressed that the US would retaliate forcefully if provoked.

China’s President Xi Jinping, in his first major response, declared his country was “not afraid” of the US actions and called for joint resistance against unilateral bullying with the European Union. While the Chinese Finance Ministry indicated tariffs wouldn’t increase further, a Commerce Ministry spokesperson criticized Trump’s tariffs as a “numbers game” that “will become a joke.”

The dramatic escalation sent global markets into a frenzy. Investors dumped US government bonds, the dollar plummeted, and stock markets experienced wild swings. Yields on US government bonds rose, signaling weaker demand. Although Wall Street closed higher on Friday, economists warn of higher inflation, slower growth, and the potential for a global recession due to the trade disruption. Analysts described the tariff levels as nonsensical, suggesting China is prepared for a protracted conflict.

The European Union, initially targeted with 20% tariffs by Trump, is currently holding back on retaliation but maintains a range of countermeasures. Talks between the EU and US officials are scheduled for Monday.

Despite the escalating tensions, President Trump expressed optimism about reaching a deal with President Xi, describing him as a friend. However, US officials have made it clear that they expect China to make the first move towards de-escalation. The situation remains highly volatile, with global markets anxiously awaiting the next development in this high-stakes trade war.

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