WASHINGTON: Donald Trump has confirmed 104% tariffs on Chinese goods. The move deepens his trade war with the world. It also defies warnings of economic fallout.
The White House announced the new tariffs on Wednesday. The decision affects all imports from China. Press Secretary Karoline Leavitt said Trump would impose an additional 84% tariff. This comes on top of earlier tariffs totalling 20%.
Trump warned of even more penalties. He threatened an extra 50% tariff if China retaliated. That would push total tariffs on Chinese goods to 104%.
Beijing hit back, vowing to “fight to the end” if the US escalates. The Chinese government called the move unfair and promised a strong response.
Despite backlash, Trump stood firm. “President Trump has a spine of steel and he will not break,” said Leavitt. “And America will not break under his leadership.”
The move sparked legal and political pushback. Billionaire Elon Musk urged Trump to reverse course. The New Civil Liberties Alliance, backed by conservative donors, filed a lawsuit. It called the tariffs “illegal.”
The new tariffs exceed the 10% flat rate Trump imposed on global imports last Friday. These new rates vary by country. Critics say the formula is flawed. It calculates tariffs based on trade deficits divided by twice the import value.
Markets responded with turbulence. On Tuesday, Wall Street dropped sharply. The S&P 500 fell 1.6% to 4,982.77, dipping below 5,000 for the first time in a year. The Dow Jones fell 0.8%. The tech-heavy Nasdaq dropped 2.2%.
Earlier, some global markets rebounded. London’s FTSE 100 rose 2.7%. Japan’s Nikkei 225 jumped 6%. Hong Kong’s Hang Seng Index climbed 1.5%.
Treasury Secretary Scott Bessent defended the policy. He said tariffs had reached “maximum” levels. He remained hopeful for new trade deals. “If countries bring strong offers, we can strike good deals,” Bessent told CNBC.
Reporters asked Trump if the tariffs were permanent. “Well, it can both be true,” he said. “There can be permanent tariffs, and there can also be negotiations.”
He hinted at talks with South Korea. “Their top TEAM is on a plane heading to the US,” he posted on Truth Social. “Things are looking good.”
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Trump added that many countries want deals. “We are likewise dealing with many other countries,” he said. “They all want to make a deal with the United States.”
He claimed China also wanted to negotiate. “They don’t know how to get it started. We are waiting for their call. It will happen,” Trump wrote.
