China raises tariffs on US goods from 84% to 125%

After it was not clear yesterday what will be China’s reaction to the huge US additional tariffs, today China had acted and increased tariffs on US goods to 125%.

A nice wakeup call this morning in the US and Europe.

China seems to push forward into a massive trade war with the US while the rest of the World is negotiating for fair and sustanable reciprocal tariffs.

The Chinese attitude is not understandable, in particular, in view of the already exisitng internal financial and economic problems.

As it is expected that a further increase of tariffs will have no relevant consequences on both side, as markets will not accept such costs after a certain level, China and the US are not expected to further increase tariffs. At a certain level trade simply breaks down.