China struck back in the trade war with the United States earlier this morning, announcing it would raise tariffs on U.S. goods from 84% to 125%. A Chinese finance official stated that President Donald Trump’s most recent tariff increase on China to 145% "won't create any economic damage" and suggested it will become a "joke in world economic history."

President Trump announced on Thursday that the U.S. would increase the tariff rate on goods from China by 20% after Chinese leaders expressed an unwillingness to negotiate with the U.S. Thursday's announcement was the third time this month that the president has increased tariffs on China. He previously increased tariffs from 20% to 104%. He then increased that rate to 125% earlier this week, before making it 145% on Thursday.

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Lin Jian, China's Foreign Ministry spokesperson, said China will simply ignore any future escalations in the trade war by President Trump.

"Given that U.S. exports to China are already commercially unviable at current tariff levels, any further U.S. tariff hikes on Chinese goods will simply be ignored," he said.

President Trump has sought to lower the trade deficit that the U.S. has with China and other nations through tariffs. In 2023, the United States imported $436 billion in goods from China while sending $154 billion to China. China is the third-largest importer of U.S. goods, according to the Observatory of Economic Complexity. China is also the second-largest exporter of goods to the U.S., slightly behind Mexico.

The White House has claimed that the trade imbalance has led to a loss of U.S. manufacturing jobs.

Chinese President Xi Jinping said, "China is not afraid." He has not yet reached out to President Trump to negotiate the trade dispute.

The tariffs on goods from China are in addition to a 10% duty on nearly all imports worldwide and a global 25% tax on steel and aluminum imports.

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The result of all these tariffs has caused angst on Wall Street, as the Dow Jones Industrial Average and S&P 500 have lost about 10% of their value this month.