China's Ministry of Finance announced on Friday that it will impose additional tariffs on imported goods originating from the United States starting Saturday, raising the rate to 125%. This move is in response to the recent decision by the U.S. government to increase tariffs on Chinese goods exported to the U.S. to 125%. The Ministry pointed out that the U.S. actions seriously violate international trade rules.

Since U.S. President Donald Trump announced a 34% tariff on goods imported from China last week, tariff measures between the two countries have escalated rapidly. After China initially took reciprocal countermeasures, the U.S. raised tariffs by 50%; China then announced an 84% tariff increase on U.S. goods. Although Trump suspended country-specific tariffs on most nations on Wednesday, he again raised tariffs on Chinese goods, further intensifying trade friction between the two sides.

In another statement released on Friday, China's Ministry of Finance hinted that if the U.S. continues to raise tariffs, China may no longer take retaliatory action, noting that at the 125% tariff level, U.S. goods will find it difficult to sell in the Chinese market. The statement emphasized that current tariffs have made U.S. products uncompetitive in the Chinese market.

The World Trade Organization (WTO) predicts that as the trade war continues, trade in goods between China and the U.S. could decline by as much as 80%. WTO Director-General Ngozi Okonjo-Iweala warned in a statement on Wednesday that tensions could lead to a fragmentation of global trade along geopolitical lines and drive a long-term reduction of nearly 7% in global real GDP.