In a dramatic escalation of trade tensions, China has announced retaliatory tariffs of 125% on U.S. goods, responding to former President Trump's recent trade actions. The unprecedented rate increase targets key American exports, marking a significant intensification of the ongoing trade dispute. Financial markets have reacted strongly, with U.S. stock futures declining and global trade concerns mounting. The move represents China's most aggressive trade response to date, potentially impacting billions in bilateral trade.