In a bold move, China announced on Friday that it would be increasing tariffs on U.S. goods from 84% to 125%. This decision escalates an already tense trade war between the two largest economies, causing market disruptions and concerns about a global economic slowdown.

Despite U.S. President Donald Trump’s recent decision to halt import taxes for other countries, tariffs on Chinese goods have now reached 145%. China has condemned these actions as “economic bullying” and vowed to retaliate with countermeasures, with the new tariffs set to take effect on Saturday.

A spokesperson for the Chinese Finance Ministry criticized Washington’s tariff increases, calling them a “joke in the history of the world economy.” The Ministry also announced plans to file another lawsuit with the World Trade Organization in response to the U.S. tariffs.

Chinese President Xi Jinping emphasized that “there are no winners in a tariff war,” highlighting China’s self-reliance and determination to defend its interests. The escalating tensions have raised concerns about the impact on the global economy, with fears of a possible recession looming.

Analysts warn that the trade war between the U.S. and China, as the world’s top two economies, could have far-reaching consequences. The uncertainty surrounding the situation has led to market volatility and a sense of unease among investors.

The tariffs imposed by China will affect key U.S. imports such as soybeans, aircraft, and pharmaceuticals, while the U.S. top imports from China include electronics, industrial equipment, and toys. Consumers and businesses can expect to see price increases on these products as tariffs continue to rise.

President Trump’s goal with the tariffs is to bring manufacturing jobs back to the U.S., a strategy that could have significant long-term implications. However, the potential impact on the economy and global trade dynamics remains uncertain.