China’s 125 per cent tariff on United States’ goods comes into effect from today. The move came after US President Donald Trump raised the tariffs for China to 145 per cent earlier this week. Amid the ongoing trade war between the world’s top economies, the Chinese finance ministry has said that further action by the US will be ignored because, at the current tariff level, there is no possibility of market acceptance for US goods exported to China. Meanwhile, Chinese President Xi Jinping urged the European Union to join hands with Beijing in resisting what he called unilateral bullying by US.

On the other hand, the US President has said that he will impose reciprocal tariffs again on countries that fail to reach an agreement with America by 9th of July, when the 90-day pause ends. Following a meeting of the cabinet, President Trump said, if they can’t make the deal that is good for both parties, then they will go back to reciprocal tariffs.