Beijing on Friday increased its tariffs on U.S. imports to 125%, hitting back against President Donald Trump's decision to hike duties on Chinese goods to 145%.

China announced Friday that it will raise tariffs on U.S. goods from 84% to 125% — the latest salvo in an escalating trade war between the world’s two largest economies that has rattled markets and raised fears of a global slowdown.

The U.S. hiked its tariffs on China earlier to 125%, which was later re-clarified by the White House to 145% yesterday as the trade war with China escalates further. China finally retaliated to these massive tariffs by announcing new retaliatory tariffs of 125%.