China raises tariffs on U.S. imports to 125%

TRUMP’S POLICIES ARE CALLED ‘A JOKE’

Shoppers look at electronics during Black Friday at a Target in Houston. A broad variety of products made in China, including toys, clothing and electronics, may cost more amid the latest tariffs on China. Shoppers could also see an impact from other tariffs. CALLAGHAN O’HARE — THE NEW YORK TIMES

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By Alexandra Stevenson

The New York Times

HONG KONG >> China on Friday said it was raising its tariffs on American goods to 125%, retaliating for the third time in the escalating trade war between the two superpowers.

The brinkmanship between President Donald Trump and Xi Jinping, China’s top leader, threatens to rip apart trade ties between the world’s two largest economies after years of simmering tensions.

China accompanied its announcement of the higher levies, which take effect Saturday, with a mocking statement calling Trump’s tariff policies “a joke.”

The announcement by the State Council, China’s Cabinet, followed a clarification Thursday by the Trump administration that Chinese goods imported to the United States now face a minimum tariff rate of 145%.

Over the past two weeks, China and the United States have been engaged in a fast-moving tit-for-tat that has resulted in ever-higher barriers to trade, churning markets and threatening economies around the world.

Stocks ended the week on a positive note, with the S&P 500 rising about 2%, although it remained 5% below its value April 2, the day Trump announced a raft of global tariffs. Yields on U.S. government bonds rose again Friday, in a sign that the world’s faith in the U.S. economy had been shaken by Trump’s trade war with China.

Laurence D. Fink, CEO of giant asset manager BlackRock, said Friday morning on CNBC that the United States had become “the global destabilizer.” Jamie Dimon, CEO of JPMorgan Chase, said his bank was concerned about the price of Treasury bonds — they move inversely to yields — and looking at the bond market “every minute.”

Consumer sentiment fell again in April as expectations about inflation surged, according to the latest survey by the University of Michigan. Survey respondents expected the annual inflation rate, now below 3%, to increase to 6.7% in the coming year, the highest reading since 1981 and a sharp acceleration from March’s 5% level.

Meanwhile, Trump’s advisers fanned out on TV networks to issue reassuring messages.

Speaking on Fox News, Jamieson Greer downplayed the risks that the tit-for-tat could result in substantial price increases for consumers, given how much the United States imports from China. “While there may be an adjustment,” he said, “I think we’re going to be on a good path, and I don’t think we’re going to see that level of increase in household expenses.”

Trump claimed that his administration is “doing really well on our tariff policy,” he wrote on Truth Social, his social media site. “Very exciting for America, and the World!!! It is moving along quickly.”

Peter Navarro, a senior White House trade adviser, said Trump was angling for “90 deals in 90 days” with countries willing to negotiate lower tariffs with the United States.

“Americans should trust in Trump, the markets should trust in Trump, and not get these weak knees,” Navarro said on Fox Business.