JAKARTA – The Chinese government has signalled a greater readiness to sever trade ties with the United States following the recent hike in import tariffs to 125%.

China’s Tariff Commission, as cited by Channelnewsasia.id on Friday (11/4), stated that the US’s decision to increase import tariffs constitutes a serious violation of China’s rights and interests. Moreover, it argued that the tariff policy has damaged the multilateral trading system.

China has vowed to counter the US’s trade tariff hikes on Chinese goods. Its retaliation was evident when it imposed an 84% tariff following the US’s increase to 104%. The US then raised tariffs further to 125% after China failed to show willingness to negotiate by the Wednesday (9/4) deadline, US time.

Guo Shan, a researcher at Hutong Research China, noted that China is no longer intimidated by tariff hikes, as it has diversified its trade portfolio, formulated strategic plans, and strengthened its political positioning. “Consider Trump 1.0 a surprise for which China was unprepared. Now, with Trump 2.0, China has had eight years to prepare,” he said.

Last week (2/4), Donald J. Trump announced a 32% tariff on Chinese goods, which China reciprocated with a similar rate on 4/4. The US then raised its tariffs to 104%, prompting China to respond with an 84% tariff on US goods starting 10/4. The US escalated again to 125%. (LK/ZH)