China to increase tariffs to 125% as trade war with US escalates

China announced Friday it will increase tariffs on U.S. goods from 84% to 125%, escalating a trade war between the world’s two largest economies. The move has rattled global markets and heightened concerns about a potential economic slowdown.

While U.S. President Donald Trump paused import taxes for several other countries this week, tariffs on China were increased, now totaling 145%.

China raises tariffs as trade war intensifies

What we know:

China has criticized the policy as "economic bullying" and pledged countermeasures. The new tariffs are set to take effect on Saturday.

Washington’s continued escalation of tariffs "will become a joke in the history of the world economy," a Chinese Finance Ministry spokesman said Friday in a statement announcing new tariffs.

China’s Commerce Ministry announced plans to file another lawsuit with the World Trade Organization against the tariffs.

Global markets unsettled amid escalating US-China tensions

Trump’s shifting tariff policies have unsettled stock and bond markets, sparking warnings of a potential U.S. recession. 

While a pause on tariffs for most countries offered some relief, fears persist as the trade war between the world’s two largest economies continues.

READ MORE: President Trump announces 90-day pause on tariffs except for China

The Source: Information in this article comes from the Associated Press.

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