China retaliates with 125 per cent tariffs against US imports, says more tariffs by Trump will be a joke

China on Friday continued its tit-for-tat move against the Trump administration's tariffs by hiking its additional levies on imports from the US to 125 per cent against duties of 145 per cent by America even as it evinced interest in dialogue with Washington to resolve the impasse.

Announcing an additional 125 per cent tariff, China's Customs Tariff Commission said, “Even if the US imposes higher tariffs, it would no longer make economic sense and ultimately go down as a joke in world economic history."

"Given that it's already impossible for the Chinese market to accept US imports at the current tariff level and if the United States imposes further tariffs on Chinese products, China will ignore it," it said.

However, should the US persist in substantially undermining China's interests, Beijing will take firm countermeasures and fight to the end, the commission added.

China's new tariffs of 125 per cent against US imports will be effective from Saturday, it said.

The announcement follows the US move to raise the "reciprocal tariffs" on Chinese imports to 125 per cent. The US later confirmed the total tariff on Chinese products was 145 per cent with the inclusion of 20 per cent levies announced by Trump soon after he took over power in January this year.

Trump's heavy tariffs left China to wage a lone battle as he paused tariffs against all other countries.

Also, similar to previous tariff hikes, China has filed a lawsuit against the US with the World Trade Organisation's (WTO) dispute settlement mechanism, a Chinese Commerce Ministry spokesperson said.

While slapping additional measures, China, however, kept its door open for talks to resolve the issue. Chinese Foreign Ministry spokesperson Lin Jian on Friday said if the US truly wanted to resolve issues through dialogue and negotiation, it must cease its maximum pressure tactics and reckless actions.

China has made clear its position on the issue of tariffs multiple times. "There are no winners in tariff wars or trade wars. China does not want to engage in such wars, but we are not afraid to do so," Lin told a media briefing here.

Any dialogue must be based on equality, mutual respect and benefit, he said, adding that if the US insisted on escalating tariff wars, China would resolutely respond to the challenge all the way.