In a jaw-dropping move that has stunned global markets and ignited fears of a full-blown trade war, U.S. President Donald Trump has imposed a record 104% tariff on all Chinese imports, just days after China vowed to retaliate against earlier levies.
The escalation began in February when Trump introduced a 10% blanket tariff on Chinese goods, linking the decision to illegal immigration concerns and China’s alleged role in fueling America’s fentanyl crisis. Beijing’s muted response didn’t last long.
On April 2, Trump announced a sharp 34% “reciprocal tariff,” accusing China of decades-long trade imbalances and intellectual property theft. In a swift response, China announced its own 34% tariff on American goods, set to take effect on April 10. This tit-for-tat exchange prompted Trump to strike back even harder, piling on an additional 50% tariff — bringing the total rate on Chinese goods to a staggering 104%.
“China has taken advantage of the United States for too long. We are done playing nice,” Trump declared during a fiery White House address. “American workers deserve fairness, security, and respect — and I’m going to deliver that, no matter what.”
Trump also confirmed the immediate suspension of ongoing trade negotiations with China, saying the U.S. would now prioritize strengthening economic ties with key allies like Japan and South Korea.
Beijing was quick to lash out, with the Chinese Ministry of Commerce condemning the U.S. move as “a mistake upon mistake,” warning that further retaliation was inevitable.
Global analysts are sounding alarms, warning that this escalating trade war could disrupt supply chains, inflate consumer prices, and destabilize fragile post-pandemic recoveries in both economies.
With both sides digging in, the world watches closely as two of the largest economies barrel toward an economic standoff with unpredictable consequences.