BEIJING has further raised retaliatory tariffs on the US and hinted it will not escalate reprisals further.

The Customs Tariff Commission of the State Council today announced it would increase duties on American goods from 84% to 125%, after the Trump administration boosted overall tariffs on China to 145% on April 10 with the latest “reciprocal” additions.

“The US has arbitrarily imposed excessively high tariffs on China, which seriously violates international trade rules, disregards the global economic order it helped build after World War II and goes against basic economic principles and common sense. This is purely an act of unilateral bullying and coercion,” said the statement.

The steep tariffs from both sides mean bilateral trade has effectively stalled, with some economists warning that if this situation persists it will intensify decoupling between the world’s two largest economies and inflict huge shocks on the global economy.

“Even if the US continues to impose higher tariffs, it no longer makes economic sense,” the commission said. “At the current tariff levels, US exports to China are no longer marketable.”

“If the US continues to play the numbers game with tariffs, China will not respond,” it added. “However, if the US insists on taking substantive actions that harm China’s interests, China will resolutely counteract and fight to the end.”

The rhetoric suggests Beijing will stop imposing more tariffs on the US but has also raised concerns that escalating tensions could spill over into other areas, causing greater disruptions.

In shipping, the transpacific container trade is bearing the brunt of the impact, with massive booking cancellations or suspensions on Sino-US routes. Meanwhile LPG carriers also face strong headwinds exporting American production into China.