Beijing on Friday increased its tariffs on U.S. imports to 125%, hitting back against U.S. President Donald Trump’s decision to hike duties on Chinese goods to 145%, raising the stakes in a trade war that threatens to up-end global supply chains.

China’s economy likely slowed down in the first quarter while 2025 growth is expected to lag last year’s pace, a Reuters poll showed, ramping up pressure for more stimulus as surging U.S. tariffs threaten to deal a damaging blow to the Asian giant.

Asian stocks slid on Friday with Japanese markets leading losses on heightened concerns over the fallout of a worsening U.S.-China trade war, which largely offset relief over the U.S. postponing some trade tariffs. 

Oil prices rose on Friday after settling more than $2 a barrel lower in the previous session, but were set to drop for a second straight week on concerns over a prolonged trade war between the United States and China.

The dollar slumped on Friday as waning confidence in the U.S. economy prompted investors to ditch U.S. assets to the benefit of safe havens such as the Swiss franc, yen and euro, as well as gold.

Planned U.S. tariffs could reduce Indonesia’s potential growth by 0.3 to 0.5 percentage points, but a 90-day pause in implementing the levies allows time to discuss solutions, Indonesia’s finance minister told Reuters on Thursday.