China has intensified its trade conflict with the United States by announcing new tariffs of up to 125% on a wide array of American goods, effective from April 12, 2025. The announcement was made by the Chinese Ministry of Commerce, which also issued a warning to the US, stating that any further provocation would be met with a firm and resolute counterattack.

In an official statement, the ministry noted, “If the US insists on continuing to substantially infringe upon China’s rights and interests, China will resolutely counterattack and fight to the end.”

This step signifies a renewed escalation in the long-standing US-China trade war, and is seen as a direct response to increasing tariff barriers introduced by the US government.

WTO Complaint Filed Amid Tariff Surge

Alongside announcing fresh tariffs, China has lodged a formal complaint with the World Trade Organization (WTO), challenging the legality of the recent US tariff hikes.

Beijing claims that the current level of US tariffs — which has now reached 145% on most Chinese imports — leaves "no possibility of market acceptance" for US goods entering China.

By taking the issue to the WTO, China is seeking global support and pushing for multilateral pressure against what it views as protectionist trade policies by the US.

US Tariff Moves and China’s Stern Reaction

The new tariffs follow a clarification from the White House on Thursday that total tariffs on most Chinese imports are now at 145%, higher than the 125% figure earlier mentioned by former President Donald Trump.

While Trump recently paused tariffs for 90 days on most other countries—excluding China—the move has further aggravated Beijing. Trump acknowledged the potential “transition costs” and “problems” arising from his tariff policies but claimed that “in the end, it’s going to be a beautiful thing.”

This statement has not calmed tensions, as Beijing has made it clear that China will not back down under any circumstances. A commerce ministry spokesperson stated, “If the US continues to impose additional tariffs, China will ignore it.”

Xi Jinping Responds Publicly: “We’re Not Afraid”

In a significant development, Chinese President Xi Jinping has commented publicly on the trade war, for the first time since this phase of the conflict began. Speaking during a meeting with Spanish Prime Minister Pedro Sanchez, Xi stated that China is “not afraid” of external pressure.

He emphasized the country’s legacy of self-reliance, declaring that China has developed without depending on foreign aid over the last 70 years.

“There are no winners in a trade war,” Xi said, according to state broadcaster CCTV, further adding that isolationist and protectionist policies are self-defeating—an indirect yet sharp criticism of the United States’ economic approach.

China's Position: Steadfast and Strategic

This latest move by China appears to be both symbolic and strategic. While the tariffs themselves will affect trade volumes, the message to global observers is clear: China will not yield under pressure.

Experts believe that Beijing is playing a long game, opting to assert its sovereignty and defend its economic interests on global platforms like the WTO, while demonstrating economic resilience domestically.

The fact that China’s retaliatory tariffs apply broadly across many American industries suggests an attempt to target political and economic stakeholders within the US, possibly increasing pressure on Washington from within.

What’s at Stake for Both Economies

This ongoing trade war is not just about tariffs. It reflects a broader geopolitical and economic rivalry between the world’s two largest economies.

For the United States, the tariff strategy is aimed at reducing reliance on Chinese goods, promoting domestic manufacturing, and correcting trade imbalances.

For China, the challenge lies in protecting export-dependent industries, maintaining investor confidence, and preserving economic growth amid external shocks.

The conflict also affects multinational corporations, global supply chains, and financial markets, many of which are watching the developments closely for signs of further escalation or reconciliation.

Global Reactions and European Union’s Caution

Interestingly, in the wake of Trump’s 90-day tariff pause for most countries (excluding China), the European Union has chosen to delay its own retaliation. Trump praised the EU’s decision as “very smart”, reflecting his attempt to isolate China diplomatically.

However, the EU has also expressed concerns over the impact of rising tariffs on global trade and economic stability.

Other nations and trade blocs are likely to follow WTO developments closely, especially considering the scale and intensity of this latest trade confrontation.

What's Next?

As of now, there’s no clear resolution in sight. With both countries entrenched in their respective positions and mutually escalating responses, analysts predict further uncertainty in global trade markets.

The WTO complaint could take months to process, and diplomatic negotiations remain uncertain. However, the sheer scale of these tariff hikes, especially China's move to impose up to 125% duties, suggests an unprecedented level of tension.

Investors, policymakers, and businesses across sectors will be monitoring:

• Future tariff actions by the US

• Retaliatory moves from China

• Impact on specific industries such as technology, agriculture, and automotive

• WTO’s stance and potential global mediation

Conclusion

The US-China trade war has entered a new and more intense chapter with China’s imposition of massive retaliatory tariffs and a formal WTO challenge. Both economic powerhouses are signaling a willingness to endure short-term pain for long-term strategic advantage.

As President Xi Jinping underscored, “There are no winners in a trade war”—yet both sides remain deeply entrenched. The world watches with concern, as the decisions made now could reshape the future of global trade and diplomacy.

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