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President Donald Trump plans to implement a staggering 104% tariff on all imports from China on Wednesday, as announced by White House Press Secretary Karoline Leavitt on Tuesday. This move adds to the existing Chinese tariffs that were already in effect before Trump’s second term.
Previously, China was facing a 34% increase in tariffs as part of Trump’s “reciprocal” tariffs initiative. However, the president added another 50% after China stood firm on its commitment to impose 34% retaliatory tariffs on American products by Tuesday noon, effectively raising the duties by an additional 84%.
Earlier on Tuesday, China’s Commerce Ministry expressed strong opposition to the additional 50% tariffs on its exports, labeling it “a mistake upon a mistake,” and pledged to intensify its retaliation against U.S. exports.
Following Leavitt’s comments, U.S. stock markets, which had risen in the morning, began to decline. The Nasdaq and S&P 500 fell into negative territory, although the Dow remained in the positive around 2:30 p.m. ET.
“Countries like China that have chosen to retaliate and further mistreat American workers are making a grave error,” Leavitt stated to reporters on Tuesday. “President Trump is resolute and will not back down.”
She further commented, “The Chinese want to reach an agreement; they just lack the proper approach.” Leavitt declined to disclose any specifics regarding potential terms that would lead Trump to consider lowering tariffs on China.
Initially, Trump imposed a 10% tariff on all Chinese imports in February, with no exemptions, linking it to China’s alleged involvement in facilitating illegal immigration and the introduction of fentanyl into the U.S. Last month, he increased that rate to 20%.
Last year, China was America’s second-largest supplier of imports, sending $439 billion worth of goods to the U.S., while U.S. exports to China amounted to $144 billion. The imposition of mutual tariffs poses risks to domestic industries and could lead to job losses.
Numerous other countries and the European Union also face a midnight deadline for new tariff rates, which Trump detailed last week, ranging from 11% to 50%.
Leavitt informed reporters that despite ongoing discussions with global leaders to negotiate lower tariff rates, Trump remains disinclined to postpone his strategies.
After speaking with Trump earlier on Tuesday, Leavitt mentioned, “He anticipates that these tariffs will be put into effect.”
Simultaneously, she stated that Trump has directed his trade team to pursue “custom-made” agreements with nations interested in negotiating. When pressed for a timeline on these trade deals, Leavitt reiterated that they won’t be “off-the-shelf agreements.”
This is a developing story and will be updated.
