Former U.S. President Donald Trump’s sweeping tariff hike on Chinese imports officially took effect today, raising levies on goods from the world’s second-largest economy to a staggering 104%. The move, part of Trump’s “reciprocal tariffs” policy, marks a significant escalation in the ongoing trade war between Washington and Beijing.
White House Press Secretary Karoline Leavitt confirmed the development, noting that the original plan to increase tariffs by 34% was already set for implementation on Wednesday. However, after China refused to back down from its retaliatory stance, Trump ordered an additional 50% hike, pushing the total surcharge to 84% on top of existing tariffs.
“Countries like China, who have chosen to retaliate and double down on their mistreatment of American workers, are making a mistake,” Leavitt stated. “President Trump has a spine of steel, and he will not break.”
Beijing responded swiftly. China’s Ministry of Commerce called the action “a mistake upon a mistake”, and warned of intensified retaliation targeting U.S. exports.
The impact on markets was immediate. The Dow Jones Industrial Average dropped 320 points, while the S&P 500 and Nasdaq Composite fell 1.57% and 2.15% respectively by the end of trading.
Despite the turmoil, Treasury Secretary Scott Bessent said 70 countries have reached out to negotiate trade terms, and Trump signaled on social media that he is in talks with nations like South Korea to lower tariffs. The White House hinted that these steep tariffs might act as leverage to strike “tailor-made” deals moving forward.
Whether these tariffs mark a long-term policy shift or a hard-nosed bargaining tactic, one thing is clear: global trade dynamics just took a dramatic turn.
