China and the United States took another dramatic step this week, ratcheting up tariffs on each other’s goods and sending fresh jitters through global markets.
On Friday, April 11, Beijing announced that, beginning Saturday, it would raise duties on American imports from an average of 84 percent to 125 percent—its most aggressive response yet to the Trump administration’s steadily climbing levies on Chinese products.
Chinese President Xi Jinping’s full remark, as reported by state broadcaster CCTV during his meeting with Spain’s Prime Minister Pedro Sánchez on April 11, 2025, reads;
“There are no winners in a trade war, and going against the world will only lead to self‑isolation,” Xi said. “For over 70 years, China’s development has relied on self‑reliance and hard work—never on handouts from others, and it is not afraid of any unjust suppression.”
Just days earlier, U.S. officials made clear that every Chinese export to America now faces at least a 145 percent tariff. In other words, both sides are now slapping each other with rates that would have been unthinkable a year ago.
The immediate market reaction was swift: Europe’s Stoxx 600 index slid roughly 1 percent, and although U.S. futures hinted at a slightly firmer open for the S&P 500, traders remain on edge.
For American farmers, the stakes are especially high. China has long been one of the largest buyers of U.S. soybeans, pork and other agricultural products.
With Beijing effectively closing its market, producers in many rural, Trump‑friendly states stand to lose billions in export revenue—and the political fallout could be significant.
Meanwhile, the U.S. Consumer Price Index for March showed a year‑over‑year increase of just 2.4 percent—below most economists’ forecasts. But that data reflects prices before the bulk of these new tariffs took effect. As higher import costs filter through to retailers and consumers, inflation could get a fresh kick.
Inside Washington, Republicans find themselves in an uncomfortable bind. Many lawmakers have long opposed broad tariffs on principle, yet few are willing to openly challenge the president’s tough stance on China. Some have quietly praised Trump’s decision to delay higher duties for 90 days on most other trading partners—even as they brace for the economic pain in the farm belt.
Across the Atlantic, European leaders are watching nervously. In Beijing this week, Spain’s prime minister clinched a deal to send more Spanish pork into China, while President Xi Jinping used the occasion to call for closer China‑EU cooperation against “unilateral acts of bullying.”
In Paris, President Emmanuel Macron described the U.S. tariff pause as a “fragile” opening for negotiation—and warned Europe to prepare its own countermeasures to protect industry and consumers.
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