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China has announced another round of retaliatory tariffs on US goods, escalating its trade war with the United States.

Some shit you should know before you read: If you’re lost on where the world stands on tariffs, we got you. President Donald Trump announced a 90-day delay on higher tariffs for most foreign trading partners two days ago, temporarily reducing rates back to 10% to allow time for negotiations. According to Trump, he made the decision because roughly 75 countries were “begging” to strike new trade deals, a response he said justified giving diplomacy a chance. However, this tariff relief does not apply to China, which remains under steep penalties—now facing a total tariff rate of 145% (125% announced yesterday + 20% over fentanyl). President Trump has indicated that easing tariffs on China will go beyond just trade and could involve other issues, including their growing nuclear weapons program, intellectual property theft, China’s activities in South America, and currency manipulation.

What’s going on now: In a notable development, China announced it was raising tariffs on all US goods from 84% to 125%, marking an escalation in the ongoing trade war with Washington. The decision, made public by China’s Ministry of Finance, was framed as a direct response to what officials described as “arbitrary” and “abnormally high” US tariffs. “With tariff rates at the current level, there is no longer a market for US goods imported into China,” the ministry said. China also warned that if the US continues to raise tariffs, it “will no longer make economic sense and will become a joke in the history of world economy.”

Beijing also signaled that it had no intention of continuing the tit-for-tat tariff battle. China’s Commerce Ministry echoed that sentiment, calling the US strategy “economically meaningless” and driven by “bullying and coercion.” A spokesperson for the Foreign Ministry took it further, saying, “If the US truly wants to have talks, it should stop its capricious and destructive behavior… Give the bully an inch, he will take a mile.”

This all comes as China ramps up diplomatic efforts to strengthen trade partnerships elsewhere. During a meeting with Spanish Prime Minister Pedro Sánchez, President Xi Jinping said “there is no winner in a tariff war and going against the world will only isolate itself.” Both leaders pledged to deepen cooperation in trade, investment, and technological innovation.

In addition, Xi is planning to host European leaders for a summit in China. According to Chinese state-controlled media (South China Morning Post), the “EU leaders’ willingness to make the trip indicates a serious effort to re-engage with Beijing at a time when the bloc’s relationship with the United States has effectively collapsed.”