China on Friday announced its decision to raise retaliatory tariffs on US imports from 84 percent to 125 percent, further escalating the trade war between the world's two largest economies.

China's State Council Tariff Commission said in a statement: "Adjust the tariff rate stipulated in the 'Announcement of the State Council Tariff Commission on Adjusting the Tariff Measures on Imports Originating from the United States' (Tax Commission Announcement No. 5 of 2025) from 84% to 125%."

"Given that at the current tariff level, there is no market acceptance for US goods exported to China. If the US continues to impose tariffs on Chinese goods exported to the United States, China will ignore it," the statement said.

China made the latest move in the trade war, which has hit the global markets just hours after US President Donald Trump raised tariffs on Beijing to 145 percent.

The trade war between the two largest economies has fueled recession fear across the globe.

No winner in tariff war, says Xi

Chinese President Xi Jinping, meanwhile, said there is no winner in a tariff war and going against the world will only result in self-isolation.

He remarked while meeting Spanish PM Pedro Sanchez in Beijing.

Xi said over the past 70 years and more, China has achieved development through self-reliance and arduous struggle, never relying on others' mercies, still less fearing any unreasonable suppression, reported Xinhua news agency.

He added that no matter how the external world changes, China will remain confident and focused on running its own affairs well.

Trump's latest tariff hike targeting China

Trump's steep tariff hike on Chinese goods took effect on Thursday, bringing the US's additional rate on many products to 145 percent, the White House confirmed.

On Wednesday, Trump announced a 90-day hold on tariffs for all other countries except Beijing. The order came to effect on Thursday.

After the US raised tariffs on China to 104 percent, Beijing retaliated, announcing that it would impose a levy of 84 percent on US imports, up from 34 percent, marking a significant escalation of the tariff trade war between the countries.