President Donald Trump has imposed a 104% tariff on Chinese imports, effective immediately, after Beijing refused to remove retaliatory tariffs on American goods. The White House confirmed the decision, calling it a response to China’s “unfair trade practices,” including intellectual property theft and state subsidies. White House Press Secretary Karoline Leavitt said the new tariff would begin collection on April 9, according to FOX Business. Leavitt said the tariffs went into effect at noon Eastern Time and would be collected starting Wednesday.
The new tariffs will affect a wide range of products, including electronics, consumer goods, and textiles. Analysts have warned of potential supply chain disruptions and higher costs for American consumers. The increase marks the most aggressive tariff hike between the two nations since Trump’s previous term in office.
On Monday, Trump threatened further tariff hikes if China did not reverse its 34% retaliatory tariff on American goods. He also announced that all negotiations with China would be halted and that the administration would shift focus to trade deals with other nations.
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In response, China has imposed its own 34% tariff on U.S. goods, effective April 10. The Chinese Commerce Ministry has accused Washington of economic pressure and escalating tensions. Additionally, China’s Finance Ministry has introduced export controls on critical rare-earth minerals, including samarium and gadolinium, which took effect on April 4.
According to the reports, the financial markets have reacted sharply. The S&P 500 has dropped 20% from its February peak, while the Dow Jones Industrial Average has fallen over 17%. In China, the Hang Seng Tech Index has plunged 27% in the past month, and the yuan has reached its lowest value since January.