Trump Slaps 104% Tariffs on Chinese Imports, Igniting New Trade Tensions

Port Jersey with the New York City skyline in the background

President Trump is taking his economic confrontation with China to a new level, announcing a total of 104% in tariffs on all goods imported from the country starting Wednesday. The news was shared by White House Press Secretary Karoline Leavitt on Tuesday, and it's already shaking up markets around the globe.

Initially, China was set to face a 34% increase as part of the administration’s reciprocal tariff package. But after Beijing confirmed it would impose its own 34% duties on American products by Tuesday noon, Trump retaliated with an additional 50%, escalating the situation further.

China’s Commerce Ministry didn’t mince words, calling the latest move “a mistake upon a mistake,” and vowed to hit back even harder with new measures on U.S. exports.

Wall Street reacted swiftly. The Dow dropped 320 points, or 0.84%, while the S&P 500 fell 1.57%. Tech stocks took the brunt, with the Nasdaq plunging 2.15%. Markets across Asia opened lower too, mirroring the U.S. drop — Japan’s Nikkei fell 3%, and Hong Kong’s Hang Seng dropped another 3%.

“These retaliatory steps by China only prove President Trump’s point,” Leavitt told reporters. “He’s not backing down. He’s standing up for American workers.” She didn't offer specifics on what it would take for Trump to consider easing the new tariffs.

This latest increase comes after a series of moves earlier this year. Back in February, Trump imposed a universal 10% tariff on all Chinese goods, citing national security and illegal drug trafficking concerns. Last month, those rates were doubled. Now, we’re looking at an effective average tariff of nearly 125% on Chinese imports — a staggering figure when you consider the U.S. imported $439 billion worth of Chinese goods last year alone.

By comparison, when Trump left office after his first term, Chinese goods faced an average U.S. tariff of 19.3%. The Biden administration largely maintained those rates, inching them slightly higher to 20.8%. But with this latest move, Trump’s trade war is in full swing.

President Trump walking outside the white house

China Prepares to Counter

Beijing appears ready to respond with a broad set of countermeasures. According to Chinese state media and sources close to top policymakers, the options on the table include raising tariffs on U.S. agricultural imports like soybeans and sorghum, halting poultry imports, suspending cooperation on fentanyl issues, and clamping down on access to U.S. entertainment and legal services in China.

One notable voice, Liu Hong, a senior editor at China’s official news agency Xinhua, posted a stark warning: “China does not provoke trouble, but it is not afraid of it either.” His comments were echoed by others, including the grandson of former senior Communist Party official Ren Zhongyi.

Despite prior rounds of tariffs prompting some U.S. companies to shift production to countries like Mexico or Vietnam, China still dominates as the primary supplier of consumer electronics, toys, and communication gear. That means Americans will likely feel these new tariffs at the checkout — whether they’re buying phones, laptops, or gadgets.

White House Press Secretary Karoline Leavitt taking questions in a press conference

No Sign of Reversal

Other nations aren’t in the clear either. More than 30 countries, plus the European Union, face the same midnight deadline for new tariff rules. Trump outlined these custom rates last week — ranging from 11% to as high as 50%.

According to Leavitt, several world leaders have reached out in hopes of negotiating reduced rates. But Trump isn’t budging — at least not yet.

“He believes these tariffs are absolutely necessary,” Leavitt said. “He’s open to making tailor-made agreements with individual countries, but he won’t accept cookie-cutter deals.”

As of now, there’s no set timeline for these custom negotiations. What is clear, though, is that the trade war is far from over — and the global economy could be in for a bumpy ride.