U.S.-imposed 104% Tariffs on China Go Into Effect, Stock Market Declines

The White House announced on Tuesday that President Donald Trump will impose tariffs of 104% on all imports from China starting on Wednesday, as a result of China's refusal to rescind retaliatory measures. This order will impose a 50% tariff on top of the 34% tariff that was implemented last week, dramatically increasing the price of all Chinese products. White House Press Secretary Karoline Leavitt stated that the announcement is a show of Trump’s commitment to addressing what he refers to as China's “treatment of American workers” and that China's interest in a deal has yet to be realized.

The tariff increase adds to an ongoing trade dispute between the world's two largest economies that has lasted for years. In 2024, the U.S. imported 439 billion in goods from China, while exporting only 144 billion to the nation. Economists are cautioning that the tariffs may do harm to both countries, which may include job losses, and put strain on industries dependent on trade. China has also imposed its own 34% tariffs on U.S. goods, which went into effect on Tuesday, and this muddies the waters for detracting tension between the two countries.

The new tariffs on imports from the U.S. are part of a bigger strategy pertaining to trading partners, including the European Union. Rate increases from 11 percent to 50 percent on imports from numerous countries are scheduled to begin at midnight, despite a global appeal to negotiate. Leavitt confirmed that Trump does not plan on postponing the tariffs, saying, "He expects these tariffs will go into effect."

The administration insists that the tariffs are intended to protect U.S. industries and workers, but some worry they may directly increase inflation and disrupt global supply chains. Already, the markets are responding uneasily to the possibility of increased trade barriers, and the recent volatility shows that the investors worried about a drawn out economic impasse.