Stock markets in Europe were trading down Friday morning after China hiked its retaliatory tariffs on the United States to 125% from 84%.
China said Friday it was raising tariffs on US goods to 125%, the latest development in the escalating trade war between the two countries.
It said the higher tariffs would take effect on Saturday.
“The US alternately raising abnormally high tariffs on China has become a numbers game, which has no practical economic significance, and will become a joke in the history of the world economy,” a Commerce Ministry spokesman said in a statement.
“If the U.S. insists on continuing to substantially infringe on China’s interests, China will resolutely counter and fight to the end.”
Chinese President Xi Jinping struck a defiant tone in his first public comments on the trade war, saying his nation was “not afraid”.
Europe’s benchmark Stoxx 600 index opened higher but was trading down 0.9% by 4.40 a.m. ET, while France’s CAC 40 index and Germany’s DAX index were down 0.9% and 1.2% respectively, CNN reported.
London’s FTSE 100 was trading down 0.2%.
President Donald Trump’s universal tariffs on China now total 145%. Notably, President Trump did not include a 20% tariff tied to the country’s role in fentanyl production in his announcement on Wednesday.
China’s Commerce Ministry said on Friday that it had filed another complaint with the World Trade Organization over US tariffs.
“On 10 April, the United States issued the Executive Order, announcing a further increase of the so-called ‘reciprocal tariff’ on Chinese products. China filed a WTO complaint against United States’ latest tariff measures,” a statement from China’s mission said.
