China says it’s raising tariffs on U.S. goods to 125%

China announced on Friday that it would be increasing tariffs on U.S. goods from 84% to 125%, marking a significant escalation in the ongoing trade war between the two countries. The new tariffs were set to take effect on Saturday, according to a statement released by China’s Finance Ministry.

In the statement, China criticized the U.S. for imposing what they called “abnormally high tariffs” that violated international economic and trade rules. They went on to say that the rising U.S. tariffs were a “joke” and that they would not entertain any future tariff hikes from the U.S.

The Finance Ministry of China also lodged a complaint with the World Trade Organization over the U.S. tariffs, signaling their continued efforts to challenge the U.S.’s trade policies. The announcement of higher tariffs by China led to a drop in the European stock indexes, with analysts warning of increased recession risks following the latest development in the trade war.

President Trump’s decision to freeze reciprocal tariffs on other countries for 90 days while increasing levies on Chinese imports was seen as a move towards negotiation. However, analysts noted that reaching a substantive deal with China would be challenging due to the deep mutual distrust and wider geopolitical forces at play.

Despite the potential for negotiations, China’s decision to raise tariffs on U.S. goods indicated a reluctance to settle quickly. The ongoing trade war between the two countries has raised concerns among investors and market analysts, with uncertainty surrounding the future of American trade policy.

Haley Ott is the CBS News Digital international reporter based in the CBS News London bureau, providing insights and updates on the latest developments in the global trade landscape.