In a significant escalation of a globally ongoing trade war, China announced on Friday that it will raise tariffs on U.S. imports to 125%, effective Saturday. This move mirrors the latest U.S. tariff increase to 145% on Chinese goods, worsening the economic standoff between the world’s two largest economies.​ Other tariffs imposed by US President Donald Trump last week, which he called “Liberation Day”, were largely rolled back amid ongoing turmoil in the American economy and in the government bonds sector.

American President Donald Trump holding up a spreadsheet of his Administration’s “Liberation Day” Reciprocal Tariffs during a press conference at the Rose Garden. (Chip Somodevilla/Getty Images / Getty Images)

China’s Ministry of Finance stated that further U.S. tariff hikes would be “economically meaningless” and would be disregarded, signaling a shift in strategy. The ministry emphasized that at the current tariff levels, American imports have become unmarketable in China, thus ending further reciprocal tariff hikes, effectively ending the trading relationship between the world’s two largest exporters and trade partners. The escalating tariffs have raised concerns about global economic stability. JPMorgan Chase CEO Jamie Dimon warned that the U.S. economy faces “considerable turbulence” due to geopolitical tensions and the threat of global trade wars. The decision by the Trump Administration to continually raise its tariffs on Chinese-made goods have also brought concerns that it could spell disaster for the American economy, as the United States imports many common goods from China, including Smartphones.