China announced it will raise tariffs on all US imports to 125%, effective Saturday, in direct response to the United States’ latest hike in levies. The move intensifies the ongoing trade standoff between the world’s two largest economies, deepening uncertainty across global markets.

The decision follows US President Donald Trump’s announcement earlier this week to raise tariffs on Chinese goods to 145%, citing Beijing’s “lack of respect for the world’s markets.” While China has now matched the US with its own 125% tariff, officials in Beijing stated that they will not raise duties any further — for now.

“Even if the US continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of the world economy,” said China’s Ministry of Finance in a sharply worded statement. “At the current tariff level, there is no market acceptance for US goods exported to China.”

The ministry added that while Beijing would no longer engage in what it called a “tariff numbers game,” it would not hesitate to “resolutely counterattack and fight to the end” if Washington continued to infringe on Chinese interests.

The tariff escalation is the latest development in a tense trade dispute that saw Trump initially announce a sweeping set of “reciprocal” tariffs on April 2. However, earlier this week, the president partially paused most of these levies for 90 days — sparing countries such as Canada, Japan, and Germany. China was notably excluded from the exemption.

“Based on the lack of respect that China has shown to the world’s markets, I am hereby raising the tariff charged to China by the United States of America to 125%, effective immediately,” Trump declared in a social media post.

The ongoing tit-for-tat has rattled financial markets. In early trading Friday, the S&P 500 and Dow Jones Industrial Average both fell, extending a week of volatility. The US dollar also slipped nearly 2% against the euro following China’s announcement, further reflecting investor unease.

Analysts warn that Trump’s aggressive trade measures could be undermining investor confidence in US assets, particularly government bonds. Long considered a safe haven, US Treasuries have seen a sharp sell-off, driving yields higher and potentially raising government borrowing costs.

China remains the second-largest foreign holder of US debt, with around $759 billion in Treasury securities. As tensions rise, some speculate that Beijing could consider reducing its exposure to US bonds as a retaliatory measure.

Meanwhile, Chinese Premier Li Qiang has reached out to European Commission President Ursula von der Leyen in a bid to build a broader coalition against Trump’s tariffs. Chinese Foreign Ministry spokesperson Lin Jian stressed the need for international support, stating, “A just cause receives support from many. The US cannot win the support of the people and will end in failure.”

Despite China’s outreach, it remains uncertain whether other nations — some of which have their own disputes with Beijing — will rally behind it. In 2024, the value of trade in goods between the US and China reached nearly $700 billion, underscoring the high stakes in the ongoing economic battle.

Global stock markets staged a dramatic rebound Wednesday after former President Donald Trump announced a 90-day pause on most of his administration’s “reciprocal” tariffs, reversing course amid mounting economic turmoil. The move came just hours after Trump posted on his social media platform, Truth Social, encouraging followers to invest — prompting both market euphoria and ethical scrutiny.

“THIS IS A GREAT TIME TO BUY!!! DJT,” Trump wrote at 9:37 a.m. Eastern Time, as major U.S. indices hovered between gains and losses. By the afternoon, Trump declared a pause on nearly all tariffs for three months. Investors responded swiftly: the Nasdaq surged 12.2%, the S&P 500 jumped 9.5%, and the Dow Jones rose 7.9%, recouping roughly $4 trillion in value that had been lost in just four days.

While Wall Street cheered, ethics experts raised red flags over the timing and potential implications of Trump’s online post. Richard Painter, a former White House ethics lawyer, warned that the post could trigger legal concerns if the tariff decision had already been made.

“He’s loving this — this control over markets — but he better be careful,” Painter said. “The people who bought when they saw that post made a lot of money.”

Asked about the timing of the tariff decision, Trump offered a vague explanation: “I would say this morning… Over the last few days, I’ve been thinking about it.” A White House spokesperson later declined to clarify, stating only that Trump’s post was part of his responsibility to “reassure the markets.”

Adding to the controversy was Trump’s use of his initials, “DJT,” at the end of the post. While sometimes used to signify personal authorship, the initials are also the stock symbol for Trump Media and Technology Group — the parent company of Truth Social. The ambiguity triggered a buying frenzy for Trump Media shares, which skyrocketed 22.7% by the close, outperforming broader indices. The company, which reported $400 million in losses last year, has limited connection to trade policy, raising further questions about the surge.

Trump holds a 53% stake in Trump Media via a trust managed by his son, Donald Trump Jr. Wednesday’s rally boosted the value of that stake by an estimated $415 million.

Meanwhile, Tesla — another stock favored by the Trump administration — edged out Trump Media with a 22.9% jump. The electric vehicle maker benefited from recent praise by Trump at a White House news conference and an endorsement from his Commerce Secretary during a television appearance. The surge added $20 billion to Elon Musk’s personal fortune.

While the market rejoiced, legal experts like Kathleen Clark of Washington University said the incident highlights a worrying trend. “He’s sending the message that he can manipulate the market with impunity,” she said. “As in: watch this space for future stock tips.”

The tariff pause is expected to spark further negotiations and market shifts in the weeks ahead. But for now, Trump’s online post and its ripple effects have ignited a fresh debate about ethics, influence, and economic power in the digital age.