U.S. President Donald Trump followed through on his threat to hike tariffs on China, announcing a record 104% rate starting on Wednesday after Beijing refused to withdraw its 34% retaliatory duties.
Trump’s Deadline
Trump had given China 24 hours to withdraw its retaliatory measures, warning of harsh consequences if they failed to comply.
China, however, stood firm, calling the threat “blackmail.”
In response, Trump swiftly approved the additional 50% tariff hike, taking total levies on Chinese goods from a 10% base rate last month to a staggering 104%—a near doubling in under a week.
‘Tariff Abuse’
The White House defended the decision as part of a broader plan to counter unfair trade practices.
Trump has long criticised China’s higher duties on U.S. goods, accusing Beijing of exploiting America through what he terms “tariff abuse.”
Last week, he introduced a “reciprocal tariff” policy, aiming to impose U.S. tariffs equal to half the rate foreign countries charge on American products. For China, this added 34% to the existing baseline, lifting total U.S. duties to 44%—and now, with this week’s escalation, to 104%.
On April 2, shortly after the reciprocal tariff plan was unveiled, the White House declared a “national emergency” linked to ongoing trade deficits and national security concerns.
New Baseline Tariffs
A new baseline 10% tariff on all imports was introduced, while China’s cumulative duties hit 54%. Now, Trump’s additional 50% hike applies exclusively to Chinese imports.
Despite the hardline measures, Trump left the door open for negotiations. On his Truth Social platform, he wrote, “China also wants to make a deal, badly, but they don’t know how to get it started. We are waiting for their call.”
Escalating Trade War
Beijing, however, dismissed the U.S. demands as coercive. “The U.S. threat to escalate tariffs against China is a mistake on top of a mistake,” said China’s Ministry of Commerce. “If the U.S. insists on having its way, China will fight to the end.”
As the world’s two largest economies dig in for a prolonged standoff, global markets have taken a hit, suffering their worst decline since the COVID-19 pandemic—underscoring the far-reaching consequences of an intensifying trade war with no clear end in sight.
