China hikes US tariffs to 125%

'Must oppose tariff bullying,' Xi tells Spanish PM as US stands its ground

- REUTERS

Beijing increased its tariffs on US imports to 125 per cent on Friday, hitting back against US President Donald Trump's decision to hike duties on Chinese goods and raising the stakes in a trade war that threatens to upend global supply chains.

China's retaliation intensified the economic turmoil unleashed by Trump's tariffs, which has seen markets tumbling and foreign leaders puzzling how to respond to the biggest disruption to the world trade order in decades.

US markets opened lower on Friday. The Dow Jones Industrial Average fell 100.2 points at the open, while the S&P 500 fell 12.5 points at the bell.

"Recession risk is much, much higher now than it was a couple weeks ago," said Adam Hetts, global head of multi-asset at Janus Henderson.

The US administration was sticking to its guns on Friday, touting its discussions with a number of countries on new trade deals which it says will justify its dramatic upheaval in policy.