China raises tariffs on US goods to 125% as trade war ramps up
Summary
China raises tariffs on US goods to 125% as the trade war with the US over Donald Trump's global tariffs escalates
Beijing faces a 145% levy on some of its goods imported to the US
President Xi Jinping calls on the EU to join Beijing in opposing "bullying" from the US, saying "there are no winners in a tariff war"
Despite this, Donald Trump says he is still hoping to secure a deal with Beijing, saying they would "end up working something out that's very good for both countries"
Meanwhile gold has risen to a record high as investors flock to safe-haven assets
Markets tracker: European stocks have a positive start, but many Asian markets are down due to the tariffs uncertainty
How the China-US relationship unravelled
Chinese officials have consistently used strong language to describe their opposition to Donald Trump’s new tariffs, which have escalated astronomically for Beijing.
When the US president first announced his sweeping global import tax scheme, China's rate sat at 34% - high, but certainly not the worst hit country.
Beijing retaliated with a 34% tariff on American goods, which kicked off a tit-for-tat trade war. The US responded by upping their tariffs to a total of 104%, so China raised theirs to 84%. The US responded again, and as it stands, current US tariffs on Chinese goods are at 125%.
But US tariffs on Beijing could yet rise further, going up to 145% for some products due to a pre-existing levy imposed on companies which produce fentanyl.
The latest raise, which came from Beijing on Wednesday, was accompanied by comments from China's finance ministry, which described the White House's actions as "trade tyranny" in state media.
Beijing "firmly opposes and will never accept such hegemonic and bullying practices", foreign ministry spokesperson Lin Jian told reporters.
The commerce ministry had previously labelled the US's additional levy as "a mistake on top of a mistake" saying it will never accept the "blackmail nature" of the US.
For his part, the US president has accused China of a lack of respect and of "ripping off" the US.
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