US Hits 104% Tariff on China

Source Credit : Portfolio Prints

A White House official has confirmed that the US will enforce a 104 per cent tariff on China beginning at 12:01 am ET on Wednesday (April 8),

This marks a major escalation in the ongoing trade tensions between the US and China, as the Trump administration aims to address what it perceives as unfair trade practices. In recent weeks, Trump has repeatedly accused foreign nations of imposing harsh duties on American products and “plundering” the US economy.

On Monday, the President warned that even higher tariffs could follow if China does not withdraw its newly introduced 34 per cent counter-tariffs.

Criticising Beijing for ignoring previous warnings, Trump vowed to respond to any further measures with “immediate and significantly increased” tariffs. He also announced the suspension of all trade negotiations with China, saying the US would instead prioritise deals with other nations.

The White House confirmed to AFP that this latest round of tariff increases will be added to an earlier 34 per cent rate due to come into effect on Wednesday, bringing the total increase in duties on Chinese imports to 104 per cent for the year. To recall, Donald Trump also announced 26 per cent tariffs on imports from India on April 2 as part of a broader trade policy shift.

"The US threat to escalate tariffs against China is a mistake on top of a mistake, which once again exposes the US's blackmailing nature," China's commerce ministry said in a statement.

As a consequence of the ongoing trade war, the S&P 500 has dropped by 20 per cent from its February peak. The Dow Jones Industrial Average is down more than 17 per cent from its highest level. The Nasdaq entered bear market territory the previous week.