Trump Imposes Record 104% Tariffs on Chinese Imports, Sparks Retaliation Threats

President Donald Trump is set to impose a record 104% in levies across all Chinese imports, escalating a trade war between the two nations. White House Press Secretary Karoline Leavitt announced the move on Tuesday, citing China's refusal to back down on its promised 34% retaliatory tariffs on US goods.

The new tariffs will bring the total average tariff on Chinese exports to the US to nearly 125%, up from 20.8% under the Biden administration. This significant increase is part of Trump's "reciprocal" tariffs package, aimed at pressuring China to reconsider its trade policies.

The announcement led to a decline in US stocks, with the Dow falling 320 points (0.84%), the S&P 500 dropping 1.57%, and the Nasdaq Composite sliding 2.15%. Asian markets also tracked Wall Street's losses, with Japan's Nikkei 225 opening 3% lower and Hong Kong's Hang Seng falling 3%.

The tariffs are expected to hurt domestic industries and potentially result in layoffs. China was the US's second-largest source of imports last year, shipping $439 billion worth of goods to the US, while the US exported $144 billion worth of goods to China.

China's Commerce Ministry has vowed to escalate its retaliation on US exports, and state media has suggested potential countermeasures. These include increasing tariffs on US agricultural products like soybeans and sorghum, banning the import of US poultry, suspending cooperation on fentanyl, limiting market access for services like legal consultancies, restricting or banning the import of US films, and investigating American companies' earnings from their intellectual property in China.

The US is not alone in facing new tariff rates. Dozens of other countries, including the European Union, will see rates ranging from 11% to 50%. Leavitt stated that Trump has little appetite to delay his plans, but is open to making "tailor-made" deals with countries that want to negotiate.