The trade war between China and the United States escalated further on Friday. China is now raising tariffs on American goods from 84 to 125 percent. The new tariffs will come into effect on Saturday. The Chinese Ministry of Finance announced this, according to the Reuters news agency.
Two of the world's largest economies have repeatedly raised tariffs on each other in the past week. The US tariff on Chinese goods is now 145 percent. This is by far the highest tariff that US President Donald Trump has imposed since his inauguration.
China's Ministry of Finance believes that the high US tariffs defy "basic economic laws and common sense", writes the AFP news agency. The Chinese have once again officially filed a complaint with the World Trade Organization (WTO) about the US punitive tariffs on Chinese goods, writes Reuters.
Initially, Chinese goods were subject to a 34 percent tariff from the US. Since then, the rate has been raised twice and is now 145 percent. China responded by raising tariffs on American goods to 84 percent. But now China has further increased the tariffs.
Last week, Donald Trump announced a series of extensive tariff increases for countries around the world.
This has sent shockwaves through stock markets from the United States to Asia, and fears of a recession have increased. Several stock indexes in Europe - including the Danish C25 index - plunged on Friday after China's response to the US tariff hammer.
On Wednesday this week, the US president changed course and eased tariffs for virtually all countries for 90 days - but not China. Donald Trump has said that tariffs will increase for countries that introduce or increase tariffs on American goods. The US president acknowledges the difficulties of his tariff policy. But he also maintains that it is the right course for the United States.
With higher tariffs, he wants to force foreign companies to produce their goods in the United States, thereby creating American jobs and boosting the American economy.
jel /ritzau/
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