China Retaliates with 125% Tariffs on US Goods

In response to the U.S. imposing 125% tariffs on Chinese goods, China has announced its own tariff increase to 125% on American imports, marking a significant escalation in the ongoing trade war. The Chinese Commerce Ministry stated that these tariffs would render U.S. exports to China commercially unviable, effectively excluding many American products from the Chinese market. Despite this aggressive stance, Beijing signaled that it would cease retaliatory measures even if the U.S. raises tariffs further. Analysts warn that the trade conflict could force countries like Australia to choose between aligning with the U.S. or maintaining trade relations with China. This trade dispute has already contributed to a dramatic decline in global equity markets, with an estimated $19 trillion lost since the S&P 500's peak earlier this year, intensifying fears of a U.S. recession. Economists are increasingly concerned about the implications of these developments on the global economy.