China imposed an 84% retaliatory tariff on U.S. goods, and afterward, Trump implemented a 125% tariff

Donald Trump increased tariffs on imports from China to 125% on April 9, 2025, effective immediately, marking a significant escalation in the U.S.-China trade war that has intensified during his second term.

Prior to this, China imposed an 84% retaliatory tariff on U.S. goods starting April 10, 2025, in response to Trump’s initial 104% tariff, which was later raised to 125%.

Trump stated on Truth Social that this was a reaction to China’s “lack of respect” and expressed hope that China would soon amend its trade practices.

This policy followed his April 2 “Liberation Day” announcement of a 10% universal tariff, but on April 9, he shifted focus to China while granting a 90-day tariff pause for over 75 other countries that did not retaliate.

Economically, experts warn that the price of Chinese goods in the U.S. will rise, impacting consumers, though Trump views it as beneficial for American jobs and manufacturing. For China, this is a “crippling” blow, as the U.S. is a major market, and tariffs exceeding 35% could wipe out their exporters’ profit margins.

Global markets saw volatility, S&P 500 and Nasdaq posted significant gains on April 9 when Trump paused tariffs on other nations, but pressure on China led to declines in Asian markets like the Hang Seng.

In terms of trade volume, the U.S. imported $438.9 billion in goods from China and exported $143.5 billion in 2024, and according to the Tax Foundation, these tariffs represent the largest tax hike since 1982, adding a $1,900 burden per U.S. household.

China’s Foreign Ministry has vowed to “fight to the end,” while Trump and Treasury Secretary Scott Bessent see this as a strategy to bring China to the negotiating table. The trade war shows signs of persisting, with profound effects on global trade and the economy.