The White House has confirmed that a 104 percent tariff on Chinese imports will take effect from April 9, making it one of the most aggressive trade actions ever taken by the United States against China.
The decision intensifies tensions between the world’s two largest economies and raises concerns over the future of global trade stability.
President Donald Trump approved the tariff following Beijing’s refusal to withdraw its retaliatory duties against earlier U.S. measures.
The new tariff brings the cumulative rate imposed on Chinese goods in 2025 to over 100 percent, effectively doubling the cost of affected imports.
White House Press Secretary Karoline Leavitt said in a statement that the administration is committed to protecting American industries from what it describes as China’s unfair trade practices.
She noted that President Trump remains open to dialogue but emphasized that the U.S. would not tolerate imbalanced trade relationships that harm American economic interests.
The announcement triggered a sharp reaction from China’s Ministry of Commerce, which vowed to respond with equivalent measures.
In a statement released Tuesday, Chinese authorities said they will “fight to the end” and plan to impose new tariffs on U.S. products starting April 10.
The ministry condemned the U.S. action as unilateral and harmful to global economic recovery.
The escalation has already impacted global financial markets as the S&P 500 dropped by 2.3 percent to take its total declines to nearly 20 percent in three days.
The Dow Jones Industrial Average lost 1015 points, while the Nasdaq Composite fell by 1.9 percent. Collectively, U.S. equities have lost over $5.3 trillion in market value in the last two trading sessions.
European and Asian markets have also responded negatively.
Germany’s DAX index plummeted 10 percent at opening while the UK’s FTSE 100 saw its sharpest fall in five years.
The Hang Seng Index in Hong Kong recorded its fourth-largest one-day loss in history as global investors remain wary of heightened global uncertainty.
In response to market volatility, the U.S. Treasury Department indicated that it is monitoring financial conditions closely but has not announced any counterbalancing fiscal measures.
Economists warn that the latest development could lead to sustained trade disruptions higher consumer prices and global supply chain instability.
Analysts at United Capital Research said the tariffs may further complicate global economic recovery efforts and trigger protectionist responses from other trade partners.
President Trump has stated that other countries have reached out to initiate trade talks and emphasized that the U.S. will engage based on its national interests.
However, the lack of dialogue with Chinese President Xi Jinping since Trump returned to office underscores the deepening rift.
The administration maintains that the tariffs are necessary to correct trade imbalances and prevent foreign economic aggression.
China, meanwhile, is expected to continue defending its economic position through reciprocal actions and strategic policy adjustments.
