China enhances tariff on US imports to 125%

As a result of this trade war, the global stocks fell, the dollar slid and a sell-off in US government bonds picked up pace today.

China has further enhanced its retaliatory tariffs on US imports to 125%, escalating the trade war between the world’s two biggest economic powers, which has tanked international markets and fueled fears of a global recession.

Chinese leader Xi Jinping struck a defiant tone in his first public comments on the trade war, saying his nation was “not afraid.”

The European Union is also prepared to impose taxes on US tech giants if talks with President Donald Trump fail to bring down tariffs on European goods, the European Commission president told the Financial Times.

The White House yesterday clarified that it was actually imposing tariffs totalling 145 percent on China, combining the previously announced 125 percent rate with a 20 percent import tax levied for fentanyl smuggling.

As a result of this trade war, the global stocks fell, the dollar slid and a sell-off in US government bonds picked up pace today.

Yesterday, the EU put its counter-tariffs on hold after Trump announced a 90-day pause on his “reciprocal tariffs” on nearly 60 countries while keeping a baseline 10 percent tariff in place.

“We are developing retaliatory measures,” Ursula von der Leyen said, which potentially includes taxing the digital advertising revenues of companies like Meta, Google and Facebook. “There’s a wide range of counter measures… in case the negotiations are not satisfactory.”

EU could tax US tech companies if Trump tariff talks fail, commission chief says.

The EU had said it would pause its retaliatory tariffs on the US for 90 days, a day after Trump also announced a 90-day pause on his “reciprocal” tariffs.

The bloc of 27 countries had been hit by three sets of US tariffs: 25% tariffs on steel and aluminum; 25% levies on cars and a 20% “reciprocal” tariff on all other goods.

Despite pausing the “reciprocal” tariff, Trump is still imposing a 10% tariff on dozens of trading partners, including the EU.

While the US tariffs have targeted foreign goods, the EU is considering using a trade “bazooka” to hit American service companies – and tech giants in particular.

“An example is you could put a levy on the advertising revenues of digital services,” von der Leyen said.

In a statement Thursday, von der Leyen said the EU was “committed to constructive negotiations” with the US, but that its “countermeasures will kick in” if talks fail.

Maros Sefcovic, the bloc’s trade commissioner, will travel to Washington on Sunday to “try and sign deals,” a spokesperson said earlier.

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