In a sweeping escalation of trade tensions, President Donald Trump will impose a staggering 104% levy on all Chinese imports starting Wednesday, White House Press Secretary Karoline Leavitt announced Tuesday. The move builds on a previously planned 34% hike and adds an extra 50% penalty after China vowed to retaliate with equivalent tariffs on U.S. goods.
Beijing condemned the action as “a mistake upon a mistake,” and promised further retaliation. U.S. stocks, initially up, fell sharply on the news—Dow slid 320 points, S&P 500 dropped 1.57%, and Nasdaq sank 2.15%. Asian markets mirrored the slump, with Japan’s Nikkei and Hong Kong’s Hang Seng falling 3%.
Leavitt emphasized Trump’s unwavering stance: “President Trump has a spine of steel.” Meanwhile, China hinted at targeting U.S. agriculture, tech, and entertainment sectors in response. With tariffs now averaging nearly 125% on Chinese goods, American consumers and businesses brace for higher costs and potential layoffs.
