U.S. Imposes 104% Tariffs on Chinese Imports Amid Escalating Trade War
President Donald Trump made a big move that will worsen the trade war by putting a 104% tariff on all Chinese goods. The tariff goes into effect right away. This decision follows China’s refusal to withdraw its 34% retaliatory tariffs on U.S. goods. The White House says these steps are meant to fix long-term trade deficits and protect American businesses.
White House Press Secretary says 104% additional tariffs went into effect at noon eastern time because China has not removed it’s retaliation. The 104% additional tariff will be collected starting tomorrow April 9th. #trade #Tariffs #POTUS #china
— Edward Lawrence (@EdwardLawrence) April 8, 2025
Also read: Global Stock Markets Plunge Amid Escalating U.S. Tariff Disputes
The progression to this unprecedented tariff rate has been swift. Initially, the U.S. imposed a 10% tariff on Chinese goods. In response to China’s retaliatory measures, President Trump announced an additional 34% tariff, bringing the total to 44%. After that, a 10% tariff was put on every country because trade inequalities were seen as a threat to safety. This meant that China’s tariff rate was 54%. The latest move adds another 50%, culminating in the current 104% tariff.
China is strongly against what the U.S. is doing and has called it “blackmail” and promised to “fight to the end.” The Chinese Commerce Ministry said that the U.S. threats make mistakes worse and show a forceful approach. They also said that China was ready to take action to protect its own interests.
MOFCOM Spokesperson’s Remarks on the U.S. Threat to Escalate Tariffs against China
The Chinese side has noted the U.S. threat on April 7 EST to further impose an additional 50% tariff on Chinese goods. China strongly opposes this move. If the U.S. proceeds to implement these…
— 中华人民共和国商务部MOFCOM (@MOFCOM_China) April 8, 2025
Putting these tariffs in place has sent shockwaves through the world’s financial markets. The Nikkei in Japan and the Hang Seng in Hong Kong both saw big drops in their stock prices. U.S. futures also pointed to losses, with the S&P 500 witnessing one of its most substantial reversals in over five decades, shedding $5.8 trillion in value over four days. Safe-haven investments like the Japanese yen and the Swiss franc are becoming more popular with investors. At the same time, oil prices have dropped almost 4% because of worries that China will not buy as much.
Economists say that the sudden increases in tariffs could cause the world economy to go into a slump. According to JPMorgan, these tariffs could mean that the U.S. economy has to pay an extra $400 billion in tariffs. The Chinese yuan has lost value and is now close to its weakest level since 2007. This suggests that the currency could lose even more value as a response. Also, the Reserve Bank of New Zealand has lowered interest rates because of risks in global trade.
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Even though things are getting worse, President Trump has said he is willing to negotiate. This suggests that China wants a deal but isn’t sure how to start talking. He said that he would be “incredibly gracious” if Chinese President Xi Jinping reached out to him. However, until real talks start, the world economy is still on edge, waiting for the effects of this trade dispute that is getting worse.
The world watches closely as the U.S.-China trade war unfolds, with significant implications for international commerce and economic stability.
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