In a tit-for-tat move, China said it would impose a 125% tariff on US goods starting Saturday, up from the previous 84%, the Finance Ministry announced on Friday.
"The US's imposition of abnormally high tariffs on China seriously violates international trade rules, basic economic laws and common sense," Beijing's State Council Tariff Commission said in a Finance Ministry statement, adding that the new levy comes into effect on Saturday.
The move follows US President Donald Trump's decision to raise duties on Chinese goods to 145%, ratcheting up a trade war that threatens to upend global supply chains.
The White House has kept the pressure on the world's second-largest economy and second-biggest provider of US imports by singling it out for an additional tariff increase, having suspended most of the so-called "reciprocal" duties imposed on dozens of other countries.
China calls tariffs 'joke,' files WTO complaint
Beijing has said tariffs imposed by the United States "make no economic sense" and that it has filed a new complaint with the World Trade Organization (WTO).
"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 announcing the countermeasure.
"However, if the US insists on continuing to substantially infringe on China's interests, China will resolutely counter and fight to the end."
Meanwhile, China's mission to the World Trade Organization said on Friday it had lodged an additional complaint to the trade body 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 [the] United States’ latest tariff measures," the mission said, citing a Commerce Ministry spokesperson.
Trump's tariff freeze was due to 'pressure from China,' Beijing claims
Beijing has claimed that the White House's decision to freeze tariffs on other countries came partly after "pressure from China," as it announced another round of retaliatory levies on US goods.
"Under pressure from China and other parties, the United States has temporarily suspended the imposition of high reciprocal tariffs on some trading partners," a Commerce Ministry spokesperson said. "This is only a small symbolic step."
US dollar falls to lowest level against euro in 3 years
The dollar tumbled on Friday morning to its lowest level against the euro since February 2022 as the trade war between the US States and China deepens
The greenback dipped almost 2% to $1.1424 and also fell around one percent against the UK pound.
It also tanked against the yen and the Swiss franc as investors dropped what is usually considered a key safe haven currency.
Ahead of the latest drop, Michael Krautzberger at Allianz Global Investors said the dollar's decline was "a surprising indicator, as the dollar is typically considered a safe-haven currency that performs well when risk appetite deteriorates."
"A decline in the dollar could be a sign that markets are questioning its status as a global reserve currency."
What does China sell to the US?
China is the US's third-largest export market with $143.55 billion worth of exports in 2024, with electrical and electronic equipment in the top category of products at $15.2 billion.
Mineral fuels and gases, oils and distillation products came in second at $14.73 billion.
Agricultural products also figure highly, especially soybeans which alone bring in more than $12.7 billion into the US economy.
Machinery, including nuclear reactors and boilers fetched nearly $12.9 billion with aircraft and spacecraft netting $11.5 billion.
Also in the mix were optical and medical apparatus, pharmaceutical products, plastics and other various chemicals.
By state, Texas, California and Louisiana were the top US exporters to China in 2023.