Beijing on Friday increased its tariffs on U.S. imports to 125 per cent, hitting back against U.S. President Donald Trump's decision to hike duties on Chinese goods to 145 per cent, raising the stakes in a trade war that threatens to upend global supply chains. The countermeasures take effect on Saturday. The hike comes after the White House kept the pressure on the world's No. 2 economy and second-biggest provider of U.S. imports by singling it out for an additional tariff increase, having paused most of the "reciprocal" duties imposed on dozens of other countries for 90 days. WATCH | How far will China go to beat the U.S.?: Trade war: How far will China go to beat the U.S.? Duration 24:10 The U.S.-China trade war is in full swing, with neither side showing signs of backing down. Andrew Chang explains how China is positioned to absorb the shock of U.S. tariffs. Plus, will a GST cut on new homes help solve the housing crisis? "The U.S. imposition of abnormally high tariffs on China seriously violates international and economic trade rules, basic economic laws and common sense and is completely unilateral bullying and coercion," China's Finance Ministry said in a statement. The country's Commerce Ministry said China will resolutely take countermeasures and fight to the end if the U.S. insists on continuing to infringe on China's interests in a substantive way "If the U.S. continues to impose additional tariffs on Chinese goods exported to the U.S., China will ignore it," the ministry also said. "The U.S.' repeated imposition of abnormally high tariffs on China has become a numbers game and has no practical economic significance," the statement read, adding that China urges the U.S. to "take a big step forward in eliminating the so-called 'reciprocal tariffs' and completely correct its wrongful practices."