Escalation in U.S.-China Trade Dispute as Tariff Measures Intensify
The ongoing trade conflict between the United States and China has entered a new phase following a series of heightened tariff measures imposed by both governments. On April 10, 2025, the Chinese government significantly raised its retaliatory tariffs on American imports in response to recent actions by the U.S. administration.
President Donald Trump had earlier increased tariffs on goods imported from China, with new duties reaching up to 145 percent. On the same day, he also temporarily suspended tariffs for 90 days on imports from most other countries.
In response, the Chinese State Council Tariff Commission announced that tariffs on certain American products would be raised from 84 percent to 125 percent, effective April 12, 2025. The Commission criticized the U.S. government’s actions, describing the heightened tariffs as a breach of international trade norms and economic principles. According to the Commission, the U.S. measures represent unilateral and coercive conduct that undermines the foundations of fair international trade.
Citing domestic legal frameworks including the Tariff Law, Customs Law, and Foreign Trade Law of the People’s Republic of China, along with principles of international law, China confirmed its decision to implement the increased tariff rates. The Commission noted that the adjustment would apply to the existing announcement made under Tax Commission Announcement No. 5 of 2025. It also reaffirmed that all other regulatory matters would proceed according to previous guidance, specifically Announcement No. 4 of 2025.
The trade tensions trace back to executive actions taken shortly after President Trump resumed office in January, which included accusations against China, Mexico, and Canada related to immigration and illicit substances. These initial moves triggered a 10 percent U.S. tariff on all Chinese imports beginning February 4, followed by reciprocal Chinese tariffs enacted on February 10. China’s measures included a 15 percent tariff on coal and liquefied natural gas, and a 10 percent duty on U.S. crude oil, agricultural equipment, and large-engine vehicles.
Since then, both countries have engaged in a series of tariff increases, resulting in the current climate of economic confrontation. As of now, Chinese tariffs on American imports stand at 125 percent, while U.S. tariffs on Chinese goods have reached as high as 145 percent. The bilateral trade conflict remains unresolved, with no clear indication of de-escalation in the near term.
