Washington, D.C. – April 8, 2025
In a dramatic escalation of the ongoing trade conflict between the United States and China, President Donald Trump has followed through on his threat to impose a staggering 104% tariff on Chinese imports, effective at 12:01 a.m. EDT on Wednesday, April 9. The White House confirmed the move late Tuesday, marking a significant shift in U.S. trade policy and sending shockwaves through global markets.
The new tariffs build on an existing 20% levy and a recently imposed 34% duty, with an additional 50% tacked on after Beijing refused to retract its own retaliatory 34% tariffs on American goods. White House Press Secretary Karoline Leavitt announced the decision, stating, “When America is punched, President Trump punches back harder. That’s why there will be 104% tariffs going into effect on China tonight at midnight.”
The move comes after Trump issued an ultimatum on Monday via Truth Social, warning that failure by China to withdraw its retaliatory measures by Tuesday noon would trigger the additional tariffs. China’s Commerce Ministry responded defiantly, vowing to “fight to the end” and labeling the U.S. actions as “unilateral bullying.” Beijing’s refusal to back down has set the stage for what analysts are calling a full-scale trade war.
A Mounting Economic Standoff
The tariffs are part of Trump’s broader “reciprocal trade” strategy, which aims to address perceived imbalances by aligning U.S. import duties with those imposed by trading partners. China, the U.S.’s second-largest source of imports, shipped $439 billion worth of goods to the U.S. in 2024, while the U.S. exported just $144 billion to China, creating a trade deficit of $295 billion. Trump has long criticized this gap, accusing China of “ripping off” the American economy through unfair trade practices.
The latest escalation follows a series of tariff increases since Trump took office earlier this year. In February, he imposed a 10% tariff on all Chinese goods, citing national security concerns over illegal immigration and fentanyl trafficking. Last month, he doubled that rate, and the new 104% levy now nearly doubles the cost of Chinese imports in a matter of months.
Treasury Secretary Scott Bessent defended the policy, calling China’s retaliation “a big mistake” and expressing confidence that the tariffs would force major trading partners to negotiate. “I think you’re going to see some very large countries with large trade deficits come forward very quickly,” Bessent told CNBC. “If they come to the table with solid proposals, we can end up with some good deals.”
Global Markets Reel
The announcement triggered immediate volatility in financial markets. Wall Street closed lower on Tuesday after a day of turbulent trading, with the Dow Jones Industrial Average dropping as investors braced for the economic fallout. Oil prices also fell, with Brent crude dipping below $63 a barrel amid recession fears exacerbated by the U.S.-China trade rift.
Businesses reliant on Chinese manufacturing, such as Apple and Tesla, now face significant challenges. Economists warn that the tariffs will likely raise costs for American consumers, as companies pass on the increased expenses. “This isn’t a growth policy—it’s a distortion tool,” said one analyst, predicting inflationary pressure and potential workforce reductions as firms scramble to adjust.
China, meanwhile, is projecting confidence despite its own economic vulnerabilities. State media outlet Xinhua accused Trump of “naked extortion,” while analysts noted that Beijing’s leadership appears prepared to weather the storm, at least in the short term. “China seems to be saying, ‘You can’t just do this to us,’” said Leah Fahy, a China economist at Capital Economics. “It signals they believe their economy can handle the tariffs for now.”
International Reactions and Next Steps
The tariffs have drawn mixed responses globally. European pharma companies warned EU Commission President Ursula von der Leyen that the trade war could shift their operations toward the U.S., while the UK’s Keir Starmer cautioned against a retaliatory spiral. Thailand, facing a 36% U.S. tariff, is reportedly revising its own trade policies in response.
Within the U.S., the administration is moving swiftly to negotiate with allies like Japan and South Korea, which have sent representatives to Washington to avert their own tariff hikes. Leavitt hinted at flexibility, noting that Trump would be “incredibly gracious” if China sought a deal, though she declined to specify conditions for de-escalation.
As the midnight deadline approaches, the world watches a high-stakes standoff that could reshape global trade for years to come. For now, Trump’s “spine of steel,” as Leavitt described it, shows no signs of bending—nor does China’s resolve to stand its ground.
