China Raises Tariffs on U.S. Imports to 125% Amid Trade War

China has escalated its trade dispute with the United States by raising tariffs on U.S. imports from 84% to 125%, effective April 12, 2025. This move is a direct response to the U.S. decision to increase tariffs on Chinese goods to the same rate. The State Council Tariff Commission of China announced this tariff hike, which replaces the previous 84% tariff set in March. The U.S. government had previously announced a reciprocal tariff plan, raising tariffs on Chinese exports to 125% on April 10.

China's new tariffs will apply to a wide range of imported goods from the United States. The commission stated that U.S. products are not viable in the Chinese market at the current tariff level. China has also declared that it will not respond to any further tariff hikes from the U.S., asserting that the U.S. actions violate trade rules and economic norms. The new measures are based on China’s Tariff Law, Customs Law, and Foreign Trade Law, along with principles of international law.

In addition to the tariff hike, China’s Finance Ministry condemned the latest U.S. actions, labeling them as a "joke" in the history of the world economy. The ministry stated that continued imposition of higher tariffs by the U.S. would no longer make economic sense. However, the ministry also warned that if the U.S. insists on continuing to infringe on China’s interests, China will resolutely counterattack and fight to the end.

This escalation in trade tensions has had an immediate impact on global markets, including the cryptocurrency market. The rapid escalation in U.S.-China trade friction created significant volatility in cryptocurrency markets. Bitcoin, for instance, dropped below $74,000 before recovering to around $81,500. Around the same time, Ethereum traded lower, slipping over 2% in 24 hours to near $1,548. Analysts attribute the decline to investor concerns over global economic slowdown and rising inflation driven by the tariff war. Although the immediate impact has been bearish, some market watchers suggest that cryptocurrencies like Bitcoin could gain long-term appeal. They believe Bitcoin can serve as a hedge against economic instability, especially if geopolitical tensions persist.

China's defiant stance against the U.S. tariffs suggests that the country is prepared to weather the economic storm and is not deterred by the U.S. actions. This rhetoric could have implications for global markets, including the cryptocurrency market. The uncertainty and volatility caused by the trade war could lead to increased demand for safe-haven assets, which could potentially benefit Bitcoin. However, the impact on Bitcoin is not straightforward, as the cryptocurrency market is influenced by a multitude of factors, including geopolitical tensions, regulatory developments, and market sentiment.