China has retaliated against the United States, imposing 125% tariffs on American imports in response to the Trump administration’s steep 145% levies on Chinese exports.

The Chinese Commerce Ministry confirmed the hike from an earlier 84% rate, intensifying the trade war between the global economic giants. Beijing also filed a lawsuit with the World Trade Organization, challenging the US tariff escalation, as bilateral tensions threaten to ripple through international markets.

Notably, the Trump administration has paused tariff increases on imports from all other countries, focusing its trade offensive solely on China.

This selective approach underscores Washington’s strategy to pressure Beijing over issues like trade imbalances and intellectual property, while avoiding broader disruptions with allies and other trading partners.

The decision leaves China isolated in facing the brunt of US economic measures, potentially reshaping global trade dynamics as other nations navigate the fallout.