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China Increases Tariffs to 125% But Markets Stayed Calm. China has officially hiked tariffs on US goods to 125% (up from 84%) effective April 12. But surprisingly, the market didn’t panic this time.Why? Because this was the final blow - the maximum escalation. The room for "Further Tariff Hikes" doesn’t exist anymore. Economically, it no longer makes sense for either side to escalate. CHINA ITSELF SAID: "If the US continues infringing upon China’s interests, we will fight to the end — but it no longer makes economic sense to go further. AND CHINA WILL IGNORE U.S. IF IT KEEPS IMPOSING TARIFFS EVEN TRUMP EARLIER SAID: "I can't imagine increasing tariffs further." In short: This 125% tariff is seen as the ceiling not the beginning of a new tariff war.