UPDATE: China retaliates anew; hikes tariffs on US goods to 125% from 12 April

SINGAPORE (ICIS)–China has raised its tariffs on US goods to 125% effective 12 April, from 84% previously, marking the latest salvo in the trade war that roiled global markets this week.

This was in response to the US’ “reciprocal tariffs” on Chinese goods which were raised to 125% on 10 April, the Customs Tariff Commission of the State Council said on Friday.

“The excessively high tariffs imposed by the US on China are a serious violation of international economic and trade rules, as well as basic economic laws and common sense, and are completely unilateral bullying and coercion,” it said.

The US’ cumulative tariff rate on China now stands at 145%, consisting of the new 125% duty on goods, on top of the 20% rate already imposed earlier to pressure China to clamp down on alleged fentanyl trafficking.

“In view of the fact that under the current tariff level, there is no possibility of market acceptance of US goods exported to China, if the US side continues to impose tariffs on Chinese goods exported to the United States in the future, the Chinese side will ignore them,” China’s State Council said.

The latest move came after US President Donald Trump hiked US levies on China even as he paused additional duties on other trading partners.

Asian equity markets were on track for another week of decline, but those in China closed higher on Friday amid expectations that Beijing will introduce more stimulus measures.

Northeast Asian equities markets were already closed when China’s latest retaliatory tariffs were announced.

Japan’s benchmark Nikkei 225 ended 2.96% lower at 33,585.58, while the Hang Seng Index in Hong Kong closed higher by 1.13% at 20,914.69 while

Among petrochemical companies, Japan’s Asahi Kasei ended 4.92% lower, while South Korean producer LG Chem shed 1.77% at the close of trade on Friday.

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Thumbnail image: Qingdao Port in Shandong, east China on 6 April 2025. (Shutterstock)