China is hitting back with even more tariffs

China has retaliated against Donald Trump by raising duties on all American imports to 125 per cent from 84 per cent, declaring that it has no interest in responding further to what it calls a ‘joke’ policy. The higher rate will come into force from tomorrow. The announcement comes after the White House’s clarification that tariffs on Chinese exports have climbed to 145 per cent this year – a move China’s commerce ministry described as ‘economically meaningless’ and a tool for ‘bullying and coercion’. The world’s two largest economies exchange goods worth around $700 billion annually.

Beijing has made it clear that it considers American goods effectively unmarketable within its borders. ‘If the US further raises tariffs on Chinese exports, China will disregard such measures,’ the foreign ministry declared. Yet it also warned that any further infringement of Chinese interests would provoke a ‘resolute counterattack’. Chinese authorities also slashed the number of American films allowed into cinemas and advised students to think twice before studying in the US.