Beijing increased its tariffs on U.S. imports to 125% on Friday, hitting back against President Donald Trump's decision to raise duties on Chinese goods and upping the stakes in a trade war that threatens to upend global supply chains.

The fast-worsening trade war between the United States and China — the planet’s premier geopolitical powers, whose economies are intricately entwined — threatens to wreak severe damage on both nations and will send shockwaves worldwide.

Trump's most recent tariffs, which affected almost all U.S. trade partners, increased import taxes on Chinese goods to 104%. Beijing responded with additional tariffs on U.S. imports, raising the total levy to 84% set to take effect within hours.