China has fired back at Donald Trump’s tariff hike with one of its own. The country raised tariff rates against the U.S. from 85 percent to 125 percent Friday morning, following Thursday’s confirmation from the Trump administration that it was placing tariffs of 145 percent on China—125 percent as a reciprocal measure,

China slapped the United States with a new tariff, raising the tax on American goods to 125%. It comes after the White House raised tariffs on China to 145%. Chinese President Xi Jinping responded to President Donald Trump for the first time saying it doesn’t fear economic suppression but “there are no winners in a tariff war.

President Donald Trump is pushing for countries to purchase more U.S. energy to reduce their trade surpluses and potentially avoid higher tariffs. Treasury Secretary Scott Bessent has pointed to a potential investment by Asian allies in a major LNG project as an example of what the White House is seeking.